ZIM reported Financial Results for the Second Quarter of 2024.
Highlights
- Reported Revenues of $1.93 Billion, Net Income of $373 Million, Adjusted EBITDA of $766 Million and Adjusted EBIT of $488 Million; 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 Billion
- Declared Dividend of $112 million, or $0.93 per Share.
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.”