ZIM reports record financial results for Q1 2022
ZIM Integrated Shipping Services Ltd., a global container liner shipping company, announced its consolidated results for the three months ended March 31, 2022.
Total revenues were $3,716 million for the first quarter of 2022, compared to $1,744 million for the first quarter of 2021, primarily driven by improved freight rates, as well as an increase in carried cargo volume.
Operating income (EBIT) for the first quarter of 2022 was $2,243 million, compared to $683 million for the first quarter of 2021, resulting from higher revenues which more than compensated for increased costs, primarily bunkering and vessel chartering costs.
Net income for the first quarter of 2022 was $1,711 million, compared to $590 million for the first quarter of 2021. Net income for the first quarter of 2022 included a tax expense of $508 million, compared to $54 million for the first quarter of 2021.
Adjusted EBITDA was $2,533 million for the first quarter of 2022, compared to $821 million for the first quarter of 2021. Adjusted EBIT was $2,243 million for the first quarter of 2022, compared to $688 million for the first quarter of 2021. Adjusted EBITDA and Adjusted EBIT margins for the first quarter of 2022 were 68% and 60%, respectively. This compares to 47% and 39% for the first quarter of 2021.
Net cash generated from operating activities was $1,660 million for the first quarter of 2022, compared to $777 million for the first quarter of 2021.
ZIM carried 859 thousand TEUs in the first quarter of 2022, compared to 818 thousand TEUs in the first quarter of 2021. The average freight rate per TEU was $3,848 for the first quarter of 2022, compared to $1,925 for the first quarter of 2021.
ZIM's total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) increased by $1,255 million from $3,850 million as of December 31, 2021 to $5,105 million at March 31, 20223. Capital expenditures totaled $183 million for the first quarter of 2022, compared with $133 million for the first quarter of 2021. ZIM increased its net cash position from $509 million as of December 31, 2021 to $779 million as of March 31, 2022. ZIM's net leverage ratio as of March 31, 2022 was 0.0x, with no change from December 31, 2021.
In accordance with the Company's dividend policy, ZIM's Board of Directors declared a cash dividend of approximately $342 million, or $2.85 per ordinary share, reflecting approximately 20% of first quarter 2022 net income. The dividend will be paid on June 8, 2022 to holders of ZIM ordinary shares as of May 31, 2022.
During the first quarter, ZIM entered into multiple charter agreements for a total of 17 newbuilds, as follows:
3 x 7,000 TEU LNG dual-fuel newbuild container vessels chartered from an affiliate of Kenon Holdings
8 x 5,300 TEU wide beam newbuild vessels chartered from Navios Maritime Partners
6 x 5,500 TEU wide beam newbuild vessels chartered from MPC Container Ships
These versatile vessels can be deployed across ZIM's various global trades, including the Company's expanded network of expedited services. The vessels are expected to be delivered to ZIM throughout 2023 and 2024.
In February 2022, the Company announced the formal extension and modification of its operational collaboration agreement with the 2M alliance partners. Effective April 2, 2022, ZIM and the 2M alliance partners began operating their joint services on the Asia – US East Coast (USEC) and Asia – US Gulf Coast (USGC) trades based on a slot exchange and vessel sharing agreement. Accordingly, ZIM currently operates two out of the six joint Asia to USEC services (ZCP & ZSE) as well as three additional vessels on one of two joint Asia to USGC services (ZGX).
The Company increased its previously provided guidance for the full-year 2022 and now expects to generate Adjusted EBITDA of between $7.8 billion and $8.2 billion and Adjusted EBIT of between $6.3 billion and $6.7 billion.
ZIM is a global container liner shipping company. Founded in Israel in 1945, ZIM is a veteran shipping liner, with decades of experience.
