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ZIM tops Q3 estimates, cuts EBITDA forecast

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM ) has reported $1.3 billion in net income for the third quarter of 2022, has topped analysts’ estimates for the third quarter of 2022, but reported a reduction in the number of shipped containers and their average price compared to the previous quarter and has reduced its 2022 EBITDA forecast.

Net income in the third quarter of 2022 was $1.17 billion, down from $1.46 billion in the corresponding quarter of 2021. Earnings per share in the third quarter were $9.66, down from $12.16 in the third quarter of 2021 , but above analysts’ estimate of $9.40 per share. Third-quarter revenue was $3.23 billion, up 3% from the same quarter in 2021, and $70 million above analysts’ forecasts.

In the first nine months of 2022, Zim reported a net profit of $4.2 billion, compared to $2.9 billion in the corresponding period last year. Revenue in the first nine months of 2022 was $10.3 billion, up from $7.2 billion in the first nine months of 2021.

In the third quarter of 2022, Zim shipped 842,000 containers (TEU), down 5% from the same quarter in 2021. The average price of a shipped container was $3,353, up 4% from the same quarter in 2021.

ZIM says it will distribute a dividend of $354 million, or $2.9 per share, representing 30% of net profit in the third quarter.

ZIM President & CEO Eli Glickman said, “Our third quarter and nine-month 2022 results reflect exceptional execution and increased profitability. While market conditions remained volatile, we delivered strong EBITDA and EBIT margins and generated net income of $1.17 billion in the third quarter . Given our significant cash generation and consistent with our priority of returning capital to shareholders, this year we have declared over $1.26 billion, or $10.55 per share.”

He added, “Driven by macroeconomic and geopolitical uncertainties, the near-term outlook for container shipping has changed and the normalization of freight rates has begun. Based on our current market expectations, we now expect 2022 adjusted EBITDA of between $7.4 billion to $7.7 billion and adjusted EBIT of between $6.0 billion and $6.3 billion, noting that both will again represent full-year records.”

Published by Globes, Israel business news – en.globes.co.il – on November 16, 2022.

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