ZIM reports $1.13 billion net profit in Q3 , driven by record cargo volume

By JERUSALEM POST STAFF NOVEMBER 20, 2024 17:19

Zim Integrated Shipping Services (photo credit: ZIM INTEGRATED SHIPPING SERVICES LTD.)

ZIM Integrated Shipping Services Ltd., one of the world’s leading container shipping companies, announced on Wednesday a net profit of $1.13 billion for the third quarter of 2024. The company achieved a 12% increase in revenue compared to the same period last year, reaching $2.77 billion. This performance was supported by a record-high cargo volume of 970,000 TEUs (Twenty-foot Equivalent Units) transported during the quarter.

The company reported adjusted EBITDA of $1.53 billion and adjusted EBIT of $1.24 billion, with margins of 55% and 45%, respectively. Following these results, ZIM raised its 2024 guidance, projecting adjusted EBITDA in the range of $3.3 billion to $3.6 billion and adjusted EBIT between $2.15 billion and $2.45 billion.

Dividend payout and financial highlights

ZIM announced a special dividend of approximately $100 million in addition to its regular quarterly dividend of 30% of net profit, totaling around $440 million, or $3.65 per share.

The company attributed its improved profitability to operational efficiencies, enhanced fleet capacity, and a strategic focus on reducing costs. CEO Eli Glickman highlighted the company's success, stating, "ZIM achieved outstanding financial results for Q3 2024, including a record in cargo volume. Beyond the favorable pricing environment, our operational excellence, expanded fleet capacity, and streamlined cost structure have driven these exceptional results."

ZIM to dedicate ships for Israel's 'national needs' (credit: ZIM)

Strategic initiatives drive growth

ZIM's strategic decision earlier in 2024 to increase exposure to spot market rates in North America contributed significantly to its performance. The company also continued its investment in a modern, environmentally friendly fleet. By the end of the year, ZIM expects to receive the final four of 46 new vessels, including 28 powered by liquefied natural gas (LNG), reinforcing its commitment to reducing emissions and operating more efficiently.

Looking ahead to 2025, ZIM plans to leverage its upgraded fleet to meet environmental targets and capitalize on market opportunities in its key trade routes.

Raising 2024 guidance

In light of its strong Q3 performance, ZIM raised its full-year 2024 guidance. Adjusted EBITDA is now forecasted between $3.3 billion and $3.6 billion, while adjusted EBIT is expected to range from $2.15 billion to $2.45 billion.