ZIM Integrated Shipping Services Ltd. (ZIM) has announced its consolidated results for the three and nine months ended 30 September 2023.
The company reported that overall revenues for Q3 2023 were $1.27 billion, a 61 per cent year-over-year (YoY) reduction from $3.22 billion in Q3 2022, due to a drop in freight rates offset in part by a modest increase in carried volume.
Net loss for the third quarter of 2023 was $2.27 billion, compared to net income of $1.16 billion for the third quarter of 2022.
In terms of TEU, ZIM transported 867,000 TEU in Q3 2023, up from 842,000 TEU in Q3 2022. In the third quarter of 2023, the average freight rate per TEU was $1,139, compared to $3,353 in the third quarter of 2022.
The operational loss (EBIT) for the third quarter of 2023 was $2.27 billion, compared to $1.54 billion for the same period in 2022.
The operational deficit for the third quarter of 2023 includes a $2.63 billion non-cash impairment charge. ZIM noted that the fall in operating income for Q3 2023 was principally caused by the current quarter’s impairment loss and the previously noted decrease in revenues.
The company’s adjusted EBITDA was $211 million for the third quarter of 2023, compared to $1.93 billion for the third quarter of 2022.
Adjusted EBIT loss was $213 million for the third quarter of 2023, compared to adjusted EBIT of $1.55 billion for the third quarter of 2022.
For the third quarter of 2023, adjusted EBITDA and adjusted EBIT margins were 17 per cent and -17 per cent, respectively. This compared to 60 per cent and 48 per cent for the third quarter of 2022, respectively.
In the third quarter of 2023, net cash generated from operational operations was $338 million, compared to $1.67 billion in the third quarter of 2022.
Eli Glickman, ZIM President & CEO, said: “We are currently in a transition period, which we expect will extend into 2024, during which we should gradually see the benefits of the decisive actions we have taken to enhance ZIM’s commercial and operational resilience.
“Foremost, we embarked on a fleet renewal programme, which included 46 newbuild containerships of which 28 are green LNG vessels, and that along with the redelivery of older, more expensive and less efficient vessels, we expect will improve our cost structure and drive long-term profitable growth.
“Our cost per TEU is declining and we expect to further reduce our cost base, as our chartered newbuilds, including a total of 28 dual-fuel LNG containerships, are added to our fleet through 2023-2024.”