ZIM reports net income up 913% in Q3 2021

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ZIM Integrated Shipping Services Ltd (ZIM) has reported record financial results for the third quarter of 2021, generating its highest ever quarterly net income of $1.46 billion, a year-on-year increase of 913%, and adjusted EBITDA of $2.08 billion, a year-on-year increase of 693%.

Operating income (EBIT) for this quarter of 2021 reached $1.86 billion, compared to $189 million in the same period in 2020, showing a year-on-year increase of 884%. Revenues reached $3.14 billion, increasing 210% when compared to $1.01 billion in the same period in 2020.

Additionally, ZIM reportedly carried 884,000 TEU throughout Q3 2021, an increase of 16% compared to Q3 2020.

For the first nine months of 2021, period ending 30 September 2021, total revenues from the shipping line were $7.26 billion compared to $2.63 billion for the first nine months of 2020. This massive increase has been said to be because of an increase in revenues from containerised cargo, reflecting increases in freight rates as well as in carried volume.

Net income during this period was $2.94 billion, compared to $158 million for the first nine months of 2020, this included a tax expense of $636 million. Additionally, adjusted EBITDA reached $4.24 billion, compared to $504 million in the same period in 2020.

Overall, ZIM carried 2,623,000 TEU during the first nine months of 2021, compared to 2,042,000 through the same period in 2020.

© Zim Integrated Shipping Services Ltd (ZIM)

“We are very proud of ZIM’s significant accomplishments since our IPO earlier this year,” said Eli Glickman, President and CEO of ZIM. “The company’s continued outstanding performance is a direct result of our team’s strong execution and success proactively capitalising on both the highly attractive market and our differentiated approach.

“The exceptional results we generated in the third quarter, reflect our highest ever quarterly revenues, adjusted EBITDA, net profit and operating cash flow. Importantly, we have once again delivered industry-leading margins outperforming the sector’s average.

“During a time when we have posted record quarterly results, we are pleased to further allocate capital to enhance our commercial prospects and unlock shareholder value. Complementing our success securing our operating fleet and equipment to best serve our customers, we have distributed a $2.00 per share special dividend in September 2021 and we are now transitioning to pay quarterly dividends to provide shareholders with an immediate and more frequent return.

“Accordingly, we will be paying in December 2021 a $2.50 per share interim dividend for the third quarter, representing approximately 20% of quarterly net income. Based on our expectation to distribute 30%-50% of 2021 net income, we are poised to return significant capital to shareholders in 2022.

“Reflecting ZIM’s strong outlook and extremely positive container line market fundamentals, we have once again raised our full-year 2021 guidance. As an innovative digital leader of seaborne transportation and logistics services, we are well-positioned for the future.

“Going forward, our unrelenting focus remains on further executing our global-niche strategy to achieve superior long-term profitability, while maintaining significant fleet flexibility, promoting our ESG values as we provide a best-in-class customer experience and taking advantage of compelling growth opportunities.”

This follows the news that ZIM has announced the creation of Ship4wd, a digital freight forwarding platform offering a self-service end-to-end shipping solution.

Announced in October 2021, the independent digital multi-function freight forwarder is set to target US and Canadian small and medium-sized businesses (SMBs) importing and exporting from China, Vietnam and Israel by offering a direct solution for shipping cargo through an advanced one-stop-shop digital platform.

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