ZIM reports financial results for Q2 2024
ZIM Integrated Shipping Services Ltd., a global container liner shipping company, announced today its consolidated results for the three and six months ended June 30, 2024.
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 EBITDA 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 EBIT 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 debt of $3.25 billion as of June 30, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio 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."
Founded in Israel in 1945, ZIM is a leading global container liner shipping company with established operations in more than 90 countries serving approximately 33,000 customers in over 300 ports worldwide.
