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.
Second Quarter 2024 Highlights
- 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 EBITDA1 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 EBIT1 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 debt1 of $3.25 billion as of June 30, 2024, compared to $2.31 billion as of December 31, 2023; net leverage ratio1 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 favourable 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."
For more information:
Avner Shats
ZIM Integrated Shipping Services Ltd.
Tel.: +972-4-865-2520
Email: [email protected]