ZIM Sapphire

ZIM Sapphire-One of ZIMs new LNG vessels in Taiwan (Source: Mr YC Chou)

 

ZIM Integrated Shipping Services Ltd. announced robust Q2 2024 financial results, with net income reaching $373 million, a substantial turnaround from the $213 million loss in the same period last year. Adjusted EBITDA soared to $766 million, marking a 179% year-over-year increase, while adjusted EBIT reached $488 million.

The company attributed this success to strategic execution, leading to record carried volume of 952 thousand TEUs, an 11% growth year-over-year. Total revenues also saw a significant jump of 48%, reaching $1.93 billion.
ZIM's President & CEO, Eli Glickman, expressed satisfaction with the results, emphasizing the company's agility and differentiated strategy. He highlighted the strategic decision to increase spot market exposure in the Transpacific trade, which has enabled ZIM to capitalize on the favorable rate environment.

ZIM expects even stronger performance in the second half of 2024, driven by factors such as the Red Sea crisis and favorable demand trends. Consequently, the company has raised its full-year guidance, forecasting Adjusted EBITDA between $2.6 billion and $3.0 billion, and Adjusted EBIT between $1.45 billion and $1.85 billion.

Glickman expressed confidence in ZIM's future, citing the completion of their newbuild program, which will result in a modern, fuel-efficient fleet. The company remains on track to achieve its double-digit volume growth target in 2024 and is well-positioned for continued profitable growth.

Key Financial Highlights:

  • Q2 2024 net income: $373 million (compared to a net loss of $213 million in Q2 2023)

  • Q2 2024 Adjusted EBITDA: $766 million (179% year-over-year increase)

  • Q2 2024 Adjusted EBIT: $488 million

  • Q2 2024 total revenues: $1.93 billion (48% year-over-year increase)

  • Q2 2024 carried volume: 952 thousand TEUs (11% year-over-year increase)

  • Average freight rate per TEU in Q2 2024: $1,674 (40% year-over-year increase)

  • Declared dividend of $0.93 per share, representing 30% of Q2 2024 net income

The company also reported positive results for the first half of 2024, with significant increases in revenues, operating income, net income, and Adjusted EBITDA compared to the same period in 2023.

 

Source: Phaata.com (via ZIM)

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