ZIM 2Q Revenues Plunge 62%
Pain in the containershipping sector is not uncommon in 2023, and Israel's ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is no exception, today reporting 2Q and six month results:
- Net loss for the second quarter was $213 million, negatively impacted by a non-cash after tax item of $51 million related to the redelivery of certain vessels.
- Operating loss (EBIT) for the second quarter was $168 million, compared to operating income of $1,764 million in the second quarter of 2022
- Revenues for the second quarter were $1,310 million, a year-over-year decrease of 62%
- Carried volume in the second quarter was 860,000 TEU, a slight year-over-year increase
- Average freight rate per TEU in the second quarter was $1,193, a year-over-year decrease of 67%
"We continue to take proactive steps to respond to current market realities, with a focus on minimizing costs while optimizing our commercial strategy," said Eli Glickman, ZIM President & CEO. While Glickman said ZIM "have taken action to rationalize our existing capacity," longer term into 2024 and beyond "we expect our cost structure to improve in tandem with the delivery of our ... fuel-efficient, newbuild tonnage, including 28 LNG-powered vessels.”
With a projected soft peak season approaching, ZIM forecasts full year Adjusted EBITDA of $1.2 billion to $1.6 billion and Adjusted EBIT loss of $500 million to $100 million in 2023.
Six Months Results
ZIM reported operating results for the six months ended June 30, 2023"
- Total revenues were $2.68B for the first half of 2023, compared to $7.15 billion for the first half of 2022, driven by the decrease in freight rates.
- ZIM carried 1,629 thousand TEUs in the first half of 2023, compared to 1,715 thousand TEUs in the first half of 2022. The average freight rate per TEU was $1,286 for the first half of 2023, compared to $3,722 for the first half of 2022.
- Operating loss (EBIT) for the first half of 2023 was $182 million, compared to operating income of $4,007 million for the first half of 2022. The decrease in operating income for the first half of 2023 was primarily driven by the above-mentioned decrease in revenues.
- Net loss for the first half of 2023 was $271 million, compared to net income of $3,047 million for the first half of 2022. The expected redelivery of certain vessels sold and leased back by the company in 2018 negatively impacted second quarter net loss by a non-cash after tax amount of $51 million.