ZIM Reports Financial Results for the Second Quarter of 2024; Raising Full Year 2024 Guidance
2024-08-20 11:46

ZIM Reports Financial Results for the Second Quarter of 2024; Raising Full Year 2024 Guidance

The following release was published by ZIM:

Reported Revenues of $1.93 Billion, Net Income of $373 Million, Adjusted EBITDA1 of $766 Million and Adjusted EBIT of $488 Million2; Achieved Adjusted EBITDA and Adjusted EBIT Margins of 40% and 25%, Respectively

Achieved 11% Volume Growth with Record Carried Volume of 952 Thousand TEUs

Increased Full Year 2024 Guidance to Adjusted EBITDA of $2.6 Billion to $3.0 Billion and Adjusted EBIT of $1.45 Billion to $1.85 Billion3

Declared Dividend of $112 million, or $0.93 per Share

Second Quarter 2024 Highlights

  • Net income for the second quarter was $373 million (compared to a net loss of $213 million in the second quarter of 2023), or diluted earnings per share of $3.084 (compared to diluted loss per share of $1.79 in the second quarter of 2023).
  • Adjusted EBITDA1 for the second quarter was $766 million, a year-over-year increase of 179%.
  • Operating income (EBIT) for the second quarter was $468 million, compared to operating loss of $168 million in the second quarter of 2023.
  • Adjusted EBIT1 for the second quarter was $488 million, compared to Adjusted EBIT loss of $147 million in the second quarter of 2023.
  • Total revenues for the second quarter were $1,933 million, a year-over-year increase of 48%.
  • Carried volume in the second quarter was 952 thousand TEUs, a year-over-year increase of 11%.
  • Average freight rate per TEU in the second quarter was $1,674, a year-over-year increase of 40%.
  • Net debt1 of $3.25 billion as of June 30, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio1 of 2.0x at June 30, 2024, compared to 2.2x as of December 31, 2023.

Eli Glickman, ZIM President & CEO, stated, "We are pleased with our strong second quarter performance, highlighted by outstanding strategic execution that led to record high carried volume, representing 11% growth year-over-year. The steps we have taken to upscale our capacity and enhance our cost structure continued to drive strong financial results. We generated net income of $373 million, as we drew on our differentiated strategy and agility while capitalizing on sustained market strength. Aligned with our prioritization of returning capital to shareholders, we declared a dividend of $0.93 per share, or $112 million, representing 30% of second quarter net income."

Mr. Glickman added, "During the quarter, we benefitted from ZIM's strategic decision to increase the Company's spot market exposure in the Transpacific trade. This has enabled us to capture significant upside in a rate environment that has been elevated for longer than anticipated. We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favorable demand trends. As a result, we have significantly increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between $2.6 billion and $3.0 billion and Adjusted EBIT between $1.45 billion and $1.85 billion."

Mr. Glickman concluded, "While market fundamentals still signal supply growth significantly outpacing demand, we are confident that we have built a resilient business with a transformed fleet. By year's end, our ongoing newbuild program will be complete, as we receive delivery of the remaining eight out of 46 modern, fuel-efficient containerships that we secured, including 28 LNG-powered vessels. We are on track to achieve our double-digit volume growth target in 2024 and well positioned to drive profitable growth ahead."

Financial and Operating Results for the Second Quarter Ended June 30, 2024 Total revenues were $1.93 billion for the second quarter of 2024, compared to $1.31 billion for the second quarter of 2023, mainly driven by the increase in freight rates and carried volume.

ZIM carried 952 thousand TEUs in the second quarter of 2024, compared to 860 thousand TEUs in the second quarter of 2023. The average freight rate per TEU was $1,674 for the second quarter of 2024, compared to $1,193 for the second quarter of 2023.

Operating income (EBIT) for the second quarter of 2024 was $468 million, compared to operating loss of $168 million for the second quarter of 2023. The increase was driven primarily by the above-mentioned increase in revenues.

Net income for the second quarter of 2024 was $373 million, compared to net loss of $213 million for the second quarter of 2023, also mainly driven by the above-mentioned increase in revenues.

Adjusted EBITDA for the second quarter of 2024 was $766 million, compared to $275 million for the second quarter of 2023. Adjusted EBIT was $488 million for the second quarter of 2024, compared to Adjusted EBIT loss of $147 million for the second quarter of 2023. Adjusted EBITDA and Adjusted EBIT margins for the second quarter of 2024 were 40% and 25%, respectively. This compares to 21% and -11% for the second quarter of 2023, respectively.

Net cash generated from operating activities was $777 million for the second quarter of 2024, compared to $347 million for the second quarter of 2023.

Financial and Operating Results for the Six Months Ended June 30, 2024 Total revenues were $3.49 billion for the first half of 2024, compared to $2.68 billion for the first half of 2023, primarily driven by both an increase in freight rates and carried volume.

ZIM carried 1,799 thousand TEUs in the first half of 2024, compared to 1,629 thousand TEUs in the first half of 2023. The average freight rate per TEU was $1,569 for the first half of 2024, compared to $1,286 for the first half of 2023.

Operating income (EBIT) for the first half of 2024 was $635 million, compared to operating loss of $182 million for the first half of 2023. The increase in operating income for the first half of 2024 was primarily driven by the above-mentioned increase in revenues.

Net income for the first half of 2024 was $465 million, compared to net loss of $271 million for the first half of 2023, also mainly driven by the above-mentioned increase in revenues.

Adjusted EBITDA was $1,193 million for the first half of 2024, compared to $648 million for the first half of 2023. Adjusted EBIT was $655 million for the first half of 2024, compared to Adjusted EBIT loss of $160 million for the first half of 2023. Adjusted EBITDA and Adjusted EBIT margins for the first half of 2024 were 34% and 19%, respectively. This compares to 24% and -6% for the first half of 2023.

Net cash generated from operating activities was $1,103 million for the first half of 2024, compared to $520 million for the first half of 2023.

Source: ZIM