ZIM Integrated Shipping Services Ltd., a global container liner shipping company, announced its consolidated results for the three and twelve months ended December 31, 2022.

Fourth Quarter and Full Year 2022 Highlights

• Net income for the fourth quarter was $417 million (compared to $1.71 billion in the fourth quarter of 2021), or $3.44 per diluted share3 (compared to $14.17 in the fourth quarter of 2021); net income for the full year was $4.63 billion (compared to $4.65 billion for the full year of 2021)
• Adjusted EBITDA for the fourth quarter was $973 million, a year-over-year decrease of 59%; Adjusted EBITDA for the full year was $7.54 billion, a year-over-year increase of 14%
• Operating income (EBIT) for the fourth quarter was $585 million, a year-over-year decrease of 72%; operating income (EBIT) for the full year was $6.14 billion, a year-over-year increase of 5%. Reconciliation items between operating income and Adjusted EBIT in the fourth quarter and full year were minor
• Revenues for the fourth quarter were $2.19 billion, a year-over-year decrease of 37%; revenues for the full year were $12.56 billion, a year-over-year increase of 17%
• Carried volume in the fourth quarter was 823 thousand TEUs, a year-over-year decrease of 4%; carried volume in the full year was 3,380 thousand TEUs, a year-over-year decrease of 3%
• Average freight rate per TEU in the fourth quarter was $2,122, a year-over-year decrease of 42%; average freight rate per TEU in the full year was $3,240, a year-over-year increase of 16%
• Net leverage ratio1 of 0.0x at December 31, 2022, similar to December 31, 2021; reached positive net cash position of $279 million as of December 31, 2022
• Declared dividend of approximately $769 million, or $6.40 per share, representing, together with previous distributions made on account of 2022, approximately 44% of the full year 2022 net income

Eli Glickman, ZIM President & CEO, stated, “2022 was an exceptional year for ZIM, as we capitalized on both our differentiated strategy and the attractive market, driving record full year Adjusted EBITDA and EBIT results. Returning cash to shareholders remains a priority for our company, and we are pleased to have drawn on our strong performance to declare a fourth quarter dividend of approximately $769 million, or $6.40 per share. In total, we will be providing shareholders dividends of $2.04 billion, representing approximately 44% of total 2022 net income.”

Mr. Glickman added, “Over the past two years we have taken important steps amidst a highly lucrative market to best position ZIM to execute in a more normalized trading environment. Specifically, we enhanced our vessel sourcing strategy to secure attractive newbuild capacity and improve our cost structure. We have also diversified our commercial presence to ensure ZIM is optimizing its performance to create long-term sustainable shareholder value. Our chartered LNG-powered newbuild capacity is expected to significantly improve our cost structure throughout 2023 and beyond, strengthen our commercial prospects and advance our ESG objectives for ZIM and our customers. Consistent with our global niche strategy, we continuously review and adapt our network to swiftly respond to customers’ changing needs, capitalize on shifting market dynamics and new growth opportunities and maximize profitability.”

Mr. Glickman concluded, “While macroeconomic uncertainties, the precipitous decline in freight rates over the past few months and the supply-demand imbalance continue to drive a challenging near-term outlook for container shipping, we are confident in ZIM’s strategy and believe we will generate positive EBIT in 2023. For the full year, we expect to generate Adjusted EBITDA between $1.8 billion to $2.2 billion and Adjusted EBIT between $100 million to $500 million. In 2023 and beyond, our focus on leveraging digital strategies, operating a high-quality sustainable fleet, and further implementing our global niche strategy positions us well to best serve our customers and generate long-term sustainable value for our shareholders.”