ZIM Integrated Shipping Services (NYSE: ZIM), a global shipping and marine transportation company released consolidated results for the fourth quarter of 2022 and for the full year of 2022.
Main highlights for the fourth quarter of 2022 and for 2022 :
• Net profit in the fourth quarter amounted to $417 million (compared to $1.71 billion in the corresponding period last year), or diluted earnings per share of $3.44 (compared to $14.17 in the corresponding period last year); The net profit for 2022 amounts to 4.63 billion dollars (compared to 4.65 billion dollars in 2021).• The adjusted EBITDA in the fourth quarter amounted to $973 million, a decrease of 59% from last year; Adjusted EBITDA for 2022 was $7.54 billion, up 14% from the previous year. • The operating profit (EBIT) in the fourth quarter amounted to 585 million dollars, a decrease of 72% from the corresponding period last year; The operating profit (EBIT) in 2022 amounted to 6.14 billion dollars, an increase of 5% from the previous year. The adjustments between the operating profit (EBIT) and the adjusted EBIT for the fourth quarter and for the entire year 2022 were negligible• The revenue cycle in the fourth quarter amounted to $2.19 billion, a decrease of 37% from the corresponding period last year; Revenue turnover in 2022 amounted to $12.56 billion, an increase of 17% from the previous year.• Zim transported 823 thousand containers (TEU) in the fourth quarter, decreasing 4% from the same period last year. In 2022, Zim transported 3,380 thousand containers (TEU), a decrease of 3% from the previous year.
• The average freight price per container (TEU) in the fourth quarter was $2,122, a decrease of 42% from the same period last year. The average freight price per container (TEU) in 2022 was $3,240, up 16% from the previous year.
• Net leverage ratio1 (Net leverage ratio) of .00x as of December 31, 2022, similar to the leverage ratio as of December 31, 2021; Net cash and investments1 (net cash) as of December 31, 2022 amounted to $279 million.
• The company announced a dividend distribution in the amount of approximately $769 million, or $6.40 per share, an amount that represents, together with previous distributions made for the year 2022, approximately -44% of the net profit for the entire year 2022.
Returning capital to shareholders will be top priority, ZIM CEO says
Eli Glickman, President and CEO of Zim said, "2022 was an exceptional year for Zim, during which we benefited from both our differentiated strategy and the attractive market, which resulted in record annual results in terms of adjusted EBITDA and EBIT.
Returning capital to shareholders remains the company's top priority, and we are pleased that, in light of our excellent performance, we have announced a dividend for the fourth quarter of approximately $769 million, or $6.40 per share. In total, we will distribute to the shareholder's dividends totaling about 2.04 billion dollars, which is about 44% of the total net profit of 2022."
Glickman added, "During the last two years, against the backdrop of a highly profitable market, we have taken important steps to optimally position Zim to operate even in a more challenging business environment. In particular, we have improved our fleet management strategy to ensure transportation capacity with new ships, as well as Improving our cost structure. In addition, we have decentralized our commercial presence to ensure that Zim optimizes its performance to create long-term sustainable shareholder value."
"We expect our new LNG-powered fleet to significantly improve our cost structure during 2023 and beyond, will strengthen Zim from a commercial point of view, and advance Zim's (ESG) sustainability goals as well as those of our customer," he continued. "In accordance with our global niche strategy, we examine and make adjustments to our lineup of lines on an ongoing basis, in order to respond quickly to changes in customer needs, take advantage of dynamic changes in the market and new growth opportunities, and maximize profitability."
Glickman concluded, "While macroeconomic uncertainties, the sharp drop in transportation prices in recent months, and the imbalance between supply and demand continue to produce a challenging forecast for the near term for the container transport sector, we are confident in Zim's strategy and anticipate positive EBIT in 2023. For the full year, we expect to generate EBITDA Adjusted between $1.8 and $2.2 billion and adjusted EBIT between $100 and $500 million. In 2023 and beyond, our focus on leveraging digital strategies, operating a quality and sustainable fleet and continuing to implement our commercial strategy optimally positions Zim to In order to serve its customers and increase value for its shareholders in the long term."