ZIM PRESIDENT & CEO Eli Glickman has hailed “outstanding strategic execution” when handing down the carrier’s 2Q and 1H 2024 results which saw a strong reversal of equivalent period 2023 losses.
The company has increased its full-year guidance and now expects to generate Adjusted EBITDA between US$2.6 billion and $3.0 billion and Adjusted EBIT between $1.45 billion and $1.85 billion. Previously ZIM expected to generate Adjusted EBITDA between $1.15 billion and $1.55 billion and Adjusted EBIT between zero and $400 million.
Net income for the second quarter was US$373 million (compared to a net loss of $213 million in the second quarter of 2023), while Adjusted EBITDA for the second quarter was $766 million, a year-over-year increase of 179%. Operating income (EBIT) for the second quarter was $468 million, compared to operating loss of $168 million in the second quarter of 2023. Adjusted EBIT for the second quarter was $488 million, compared to Adjusted EBIT loss of $147 million in the second quarter of 2023.
Total revenues for the second quarter were US$1,933 million, a year-over-year increase of 48%; carried volume was 952,000 TEU, a year-over-year increase of 11%; average freight rate per TEU in the second quarter was $1,674, a year-over-year increase of 40%. Net debt was $3.25 billion as of 30 June 2024, compared to $2.31 billion as of 31 December 2023.
Eli Glickman said the strong second quarter performance, highlighted by outstanding strategic execution, led to record high carried volume, representing 11% growth year-over-year. “The steps we have taken to upscale our capacity and enhance our cost structure continued to drive strong financial results. We generated net income of $373 million, as we drew on our differentiated strategy and agility while capitalizing on sustained market strength,” he said.
For the six months ended 30 June 2024 total revenues were US$3.49 billion compared to $2.68 billion for the first half of 2023, primarily driven by both an increase in freight rates and carried volume.
ZIM carried 1,799,000 TEU in 1H 2024, compared to 1,629,000 TEU in the first half of 2023. The average freight rate per TEU was US$1,569 for the first half of 2024, compared to $1,286 for the first half of 2023.
Operating income (EBIT) for 1H 2024 was US$635 million, compared to operating loss of $182 million for the 1H 2023. Net income for 1H 2024 was $465 million, compared to net loss of $271 million in1H 2023. Adjusted EBITDA was $1,193 million for the first half of 2024, compared to $648 million for the first half of 2023. Adjusted EBIT was $655 million for the first half of 2024, compared to Adjusted EBIT loss of $160 million for the first half of 2023. Adjusted EBITDA and Adjusted EBIT margins for the first half of 2024 were 34% and 19%, respectively. This compares to 24% and -6% for the first half of 2023. Net cash generated from operating activities was $1,103 million for the first half of 2024, compared to $520 million for the first half of 2023.
“We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favourable demand trends,” Mr Glickman said.
