Israeli carrier ZIM Integrated Shipping Services Ltd. (ZIM) has generated its highest ever quarterly net income – as it confidently predicts a positive outlook for 2022.
Net income for the first quarter of this year was $1.7 billion, a year-over-year increase of 190 per cent, while EBITDA tripled compared to last year’s first quarter to $2.5 billion.
Q1 revenues reached $3.7 billion, compared to $1.7 billion for the first quarter of 2021, primarily driven by improved freight rates, as well as an increase in carried cargo volume according to the company.
Operating income (EBIT) for the first quarter of 2022 also rose to $2.2 billion, levelling out increased expenses originated from bunkering and vessel chartering costs.
ZIM has carried a total of 859,000 TEU in Q1 2022 – with an average freight rate per TEU of $3,848, compared to $1,925 for the first quarter of 2021.
“We continue to position ZIM for long-term success, as we strengthened our future commercial prospects and improved our cost structure,” said Eli Glickman, ZIM President & CEO, commenting the results.
“Since the beginning of 2022, we have announced attractive chartering transactions for 17 newbuild vessels, securing modern and efficient tonnage particularly well-suited to serve on our expanded network of expedited services.”
“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.
“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.”
The company has increased its previously provided guidance for the full-year 2022 and now expects to generate an adjusted EBITDA of between $7.8 and $8.2 billion.
Earlier this year, ZIM posted its financial results for Q4 and full year 2021.
The company’s revenues totalled $3.47 billion, up from $1.36 billion in Q4 2020, owing to an increase in volumes and freight rates.