ZIM has reported a net profit of US$1.3 billion for the second quarter of 2022, a year-on-year increase of 50%, while the company carried fewer TEUs than it did over the same time period last year.
Total revenues were US$3.4 billion for the second quarter of 2022, compared to US$2.4 billion in the same quarter in 2021.
Zim attributed the increase in total revenues to higher freight rates.
Results indicated EBIT for the second quarter of 2022 was US$1.8 billion, compared to US$1.2 billion for the second quarter of 2021, resulting from higher revenues which “more than compensated for increased costs”, primarily vessel chartering and bunkering costs.
EBIT for the first half of 2022 was US$4 billion, compared to US$1.8 billion in the first half of 2021.
However, Zim said it carried 856,000 TEU in the second quarter of this year, compared with 921,000 TEU a year earlier.
Zim said the average freight rate per TEU was US$3596 for the second quarter of 2022, compared with US$2341 in the second quarter of 2021.
Zim president and CEO Eli Glickman said the company had seen a decline in freight rates over the past several weeks despite continued port congestion and strong demand driven by macroeconomic and political uncertainties.
“We reported today strong Q2 results … as well as our best ever first half-year results with standout margins, among the highest of our liner peers,” Mr Glickman said.
“Our global niche approach is centred on successfully identifying attractive growth opportunities and adjusting our fleet size dependent on changing market conditions,” he said.
“A prime example of this has been the growth in our car carriage activities, growing from one vessel operated two years ago to 10 car carriers operated today.”
“We believe that this approach will continue to serve us well as the market is expected to normalise from peak levels.”
Mr Glickman said the company’s strong performance throughout the year coupled with profitable spot and contract rates would mark another year of record earnings and profitability.
“We are confident that … the proactive steps we have taken to strengthen our commercial offering and secure cost efficient newbuild capacity through multiple chartering agreements, and continued investment in digital initiatives and disruptive technologies, will position Zim as a top performer in our industry and enable us to deliver long-term value to our shareholders,” he said.
