ZIM's profit exceeds 3 billion USD in the first half of 2022

ZIM - Israel's container shipping line - posted total revenue of $7.15 billion for the first half of 2022, an increase of about $3 billion compared to revenue in the first half of last year.

Container ship of ZIM Shipping Line

Container ship of ZIM Shipping Line (Photo: ZIM)

ZIM - Israeli container shipping company - posted total revenue of $7.15 billion for the first half of 2022, an increase of about $3 billion from revenue in the first half of last year.

This strong growth was attributed to high container freight rates, which, according to ZIM, also reported an EBIT (earnings before interest and tax) first half operating profit of $4.01 billion, compared with $4.01 billion. $1.84 billion in the first six months of 2021.

Additionally, ZIM nearly doubled its net profit in the same period, reaching $3.05 billion.

Eli Glickman, President & CEO of ZIM, commented, "We reported strong Q2 results, including net profit of US$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 to earn 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."

Simultaneously, ZIM's adjusted EBITDA (earnings before interest, taxes, and amortization) was $4.63 billion and adjusted EBIT was $4.01 billion, while its net cash generated from operations revenue reached 3.37 billion USD in the first half of 2022.

ZIM's H1 2022 financial report

Financial statements of ZIM Shipping Lines (Source: ZIM)

ZIM shipped more than 1.7 million TEUs between January and June 2022, a slight decrease year-on-year. However, the average freight rate per TEU this year is much higher at $3,722, compared with $2,145 in the first half of 2021.

“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”.

He continued, “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 two 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 normalise from peak levels."

Glickman concludes, “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."

ZIM has upgraded its previous guidance for the full year of 2022 and projects adjusted EBITDA from $7.8 billion to $8.2 billion and adjusted EBIT between $6.3 billion and $6.7 billion.

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Source: Phaata.com (According to ZIM)

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