ZIM Integrated Shipping Services, a global container liner shipping company, announced its consolidated results for the three and six months ended June 30, 2022.
Second Quarter 2022 Highlights
• Net income for the second quarter was $1.34 billion (compared to $888 million in the second quarter of 2021), a year-over-year increase of 50%, or $11.07 per diluted share (compared to $7.38 in the second quarter of 2021)
• Adjusted EBITDA for the second quarter was $2.10 billion, a year-over-year increase of 57%
• Operating income (EBIT) for the second quarter was $1.76 billion, a year-over-year increase of 52%
• Revenues for the second quarter were $3.43 billion, a year-over-year increase of 44%
• Carried volume in the second quarter was 856 thousand TEUs, a year-over-year decrease of 7%
• Average freight rate per TEU in second quarter was $3,596, a year-over-year increase of 54%
• Net leverage 1 ratio of 0.1x at June 30, 2022, compared to 0.0x at December 31, 2021
Declared dividend of approximately $571 million, or $4.75 per share, representing approximately 30% of second quarter net income and a 10% onetime catch-up from the Q1 2022 net income
Eli Glickman, ZIM President & CEO, stated, “We reported today strong Q2 results, including net profit of $1.34 billion, as well as our best ever first half-year results with standout margins, among the highest of our liner peers. During this period, we maintained our strong execution, agility and commitment to profitable growth as we continue to advance ZIM’s position as an innovative digital leader of seaborne transportation. Due to our conviction in ZIM’s ability toearn sustainable long-term profits, we are increasing our quarterly dividend payout from 20% to 30% of quarterly net income, allowing shareholders to benefit from our strong results even more directly on a quarterly basis. Importantly, at the same time, we maintain our dividend policy, according to which shareholders may receive up to 50% of annual earnings.”
Mr. Glickman added, “Over the past several weeks, we have seen a gradual decline in freight rates, including in the transpacific trades, despite continued port congestion and resilient demand, driven by macroeconomic and geopolitical uncertainties. The dynamic nature of our industry illustrates the importance of staying focused on ZIM’s core strategy and key strengths.
Our global niche approach is centered on successfully identifying attractive growth opportunities and adjusting our fleet size dependent on changing market conditions. A prime example of this has been the growth in our car carriage activities, growing from one vessel operated 2 years ago to 10 car carriers operated today. We believe that this approach will continue to serve us well as the market is expected to normalize from peak levels.”
Mr. Glickman concluded, “Despite the backdrop of various challenges, based on our strong performance in the year to date coupled with spot and contract rates that remain highly profitable, we are reaffirming our 2022 guidance, which would mark another year of record earnings and profitability. Moving forward, we are confident that our differentiated strategy, the proactive steps we have taken to strengthen our commercial offering and secure cost efficient newbuild capacity through multiple chartering agreements, and continued investment in digital initiatives and disruptive technologies, will position ZIM as a top performer in our industry and enable us to deliver long-term value to our shareholders.”
