Israeli ocean carrier ZIM has announced a net income of US$1.13 billion in the third quarter of 2024, while the company reported a US$2.27 billion loss in the same period last year.
Similarly, ZIM achieved EBITDA of US$1.53 billion in the third quarter, representing a year-over-year increase of 626% and operating income (EBIT) of US$1.23 billion, compared to an operating loss of US$2.28 billion in the third quarter of 2023.
The total revenues of the shipping company increased by 117% to US$2.77 billion, while ZIM’s vessels moved 970,000 TEUs, translating to a 12% growth.
In the third quarter of the year, the average freight rate per TEU, which was the key element for the improved results, rose by 118% reaching US$2,480.
Eli Glickman, ZIM President & CEO, commented, “ZIM delivered strong third-quarter results, as we again achieved record carried volumes contributing to our outstanding financial performance. We are pleased to share our success with our shareholders and declare a special dividend of US$100 million on top of the regular 30% of quarterly net income dividend payout of US$340 million, for a total dividend of US$440 million, or US$3.65 per share.”
“We’ve continued to see incremental benefits from our strategic investment in our operated capacity as new larger, more modern, cost-effective vessels join our fleet,” added Glickman.
Summary of Key Financial and Operational Results
| Q3-24 | Q3-23 | 9M-24 | 9M-23 | |
| Carried volume (TEUs) | 970,000 | 867,000 | 2,768,000 | 2,496,000 |
| Average freight rate (US$/TEU) | 2,480 | 1,139 | 1,889 | 1,235 |
| Total revenues (in million US$) | 2,765 | 1,273 | 6,260 | 3,957 |
| Operating income (loss) (EBIT) (in million US$) | 1,235 | (2,276) | 1,870 | (2,457) |
| Profit (loss) before income tax (in million US$) | 1,133 | (2,342) | 1,604 | (2,678) |
| Net income (loss) (in million US$) | 1,126 | (2,270) | 1,591 | (2,541) |
| Adjusted EBITDA1 (in million US$) | 1,531 | 211 | 2,725 | 859 |
| Adjusted EBIT1 (in million US$). | 1,236 | (213) | 1,891 | (373) |
| Net income (loss) margin (%) | 41 | (178) | 25 | (64) |
| Adjusted EBITDA margin (%) | 55 | 17 | 44 | 22 |
| Adjusted EBIT margin (%) | 45 | (17) | 30 | (9) |
| Diluted earnings (loss) per share (US$) | 9.34 | (18.90) | 13.17 | (21.19) |
| Net cash generated from operating activities (in million US$) | 1,498 | 338 | 2,600 | 858 |
| Free cash flow (in million US$) | 1,454 | 328 | 2,470 | 791 |
| SEP-30-24 | DEC-31-23 | |||
| Net debt (in million US$) | 2,698 | 2,309 |
Regarding the first nine months of the year, ZIM’s total revenues have climbed to US$6.26 billion, primarily driven by both an increase in freight rates as well as carried volume.
ZIM carried 2,768,000 TEUs during this period with an average freight rate per TEU of US$1,889.
The company’s EBIT for the first nine months of 2024 was US$1.87 billion with the growth primarily driven by the above-mentioned increase in revenues and the impairment loss recorded in the third quarter of 2023. For the same period, ZIM reported a net income of US$1.59 billion, while net cash generated from operating activities was US$2.6 billion, compared to US$858 million for the first nine months of 2023.
The Company increased its guidance for the full year of 2024 and now expects to generate adjusted EBITDA between US$3.3 billion and US$3.6 billion and adjusted EBIT between US$2.15 billion and US$2.45 billion.
ZIM’s boss stated, “Also contributing to our strong Q3 was a decision we made earlier in the year to increase our exposure to spot volumes in the Transpacific trade. A key differentiator for ZIM is our commercial agility and we intend to continue to leverage this strength to capitalize on market opportunities moving forward. Based on results that have exceeded expectations to date and improved outlook for the fourth quarter of 2024, we have increased our full year 2024 guidance.”
Glickman concluded, “We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.”
