ZIM has achieved record financial results in the first quarter of the year.
“Building on an extraordinary 2021 for ZIM, we maintained our strong trajectory in the first quarter of 2022, delivering on our commitment to outstanding execution and profitable growth. Driven by the proactive strategies we have implemented to capitalise on both the highly attractive market and ZIM’s differentiated strategy, we once again generated our highest-ever quarterly revenues, net income and adjusted EBITDA, while achieving industry-leading margins”, said Eli Glickman, president & CEO of ZIM.
The company’s net income for the first quarter was US$1.7 billion, up 190% year-on-year compared to the first quarter of 2021, while its adjusted EBITDA for the same period was US$2.5 billion, up 209% year on year.
At the same time, the operating income (EBIT) of the Israeli carrier was US$2.2 billion, recording an increase of 228% on an annual basis, and its revenue was US$3.7 billion, up 113% year-on-year.
Meanwhile, ZIM has handled 859,000 TEU in the first quarter of the year, which translates to an increase of 5% compared to 2021 Q1.
“Consistent with our focus on identifying new profitable market opportunities, we have launched 10 new lines since the beginning of 2022, and we increased our carried volume quarter-over-quarter during a time when overall industry volume decreased. Our balance sheet remains very strong, with a positive net cash position combined with shareholder equity of approximately US$4.3 billion at the end of the quarter,” commented Glickman.
Furthermore, the Haifa-based shipping company has entered into multiple charter agreements for 17 newbuilds, three of which are LNG dual-fuel container vessels.
“Importantly, we will maintain flexibility to adjust our fleet size based on market conditions and be positioned at the forefront of carbon intensity reduction among global liners. The vast majority of the new capacity ZIM will add to its fleet is LNG-powered, which ensures that we will be more carbon and cost efficient and allows us to offer customers a shipping solution aligned with their own carbon reduction targets. We also continuously improve and upgrade the digital tools, platforms and solutions offered to our customers, aiming to enhance our commercial offering and provide superb customer experience,” he added.
Glickman concluded, “Our strong results to date, combined with the 2022 long-term contracts secured at rates significantly higher than those in 2021, have boosted our confidence in our 2022 results and our ability to achieve superior profitability.”
Therefore, ZIM has upgraded its full year 2022 guidance and now expect to generate adjusted EBITDA between US$7.8 billion and US$8.2 billion and adjusted EBIT between US$6.3 billion and US$6.7 billion.
