ISRAEL’S ZIM Integrated Shipping Services has seen rocketing revenues and returns in the third quarter of 2024, doubled key markers for the first nine months and joined other carriers in substantial boosting its full-year guidance.
ZIM president & CEO Eli Glickman said the company delivered strong third quarter results, as it again achieved record carried volumes contributing to outstanding financial performance. ZIM has declared a special dividend on top of the normal quarterly payout: “We are pleased to share our success with our shareholders … Our growing earnings power is reflective of a strong rate environment, but also a testament to our diligent execution, upscaling our capacity and enhancing our cost structure.
“We’ve continued to see incremental benefits from our strategic investment in our operated capacity as new larger, more modern, cost-effective vessels join our fleet.
“Also contributing to our strong Q3 was a decision we made earlier in the year to increase our exposure to spot volumes in the Transpacific trade. A key differentiator for ZIM is our commercial agility and we intend to continue to leverage this strength to capitalize on market opportunities moving forward,” Mr Glickman said.
“Based on results that have exceeded expectations to date and improved outlook for the fourth quarter of 2024, we have increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between USD 3.3 billion and 3.6 billion and Adjusted EBIT between 2.15 billion and 2.45 billion.”
Total Q3 2024 revenues were USD 2.77 billion, compared to 1.27 billion for the third quarter of 2023, mainly driven by the increase in freight rates as well as carried volume. ZIM carried 970 thousand TEU in Q3 2024 compared to 867 thousand TEU in Q3 2023. The average freight rate per TEU was USD 2,480 compared to 1,139 for the third quarter of 2023.
Operating income (EBIT) for the third quarter of 2024 was USD 1.23 billion, compared to operating loss of 2.28 billion for the third quarter of 2023. The increase was primarily driven by the impairment loss recorded in the third quarter of 2023 and the above-mentioned increase in revenues.
Net income for the third quarter of 2024 was USD 1.13 billion, compared to net loss of 2.27 billion for the third quarter of 2023, also mainly driven by the above-mentioned impairment loss recorded in the third quarter of 2023 and the increase in revenues.
Adjusted EBITDA for Q3 2024 was USD 1.53 billion, compared to 211 million for the third quarter of 2023. Adjusted EBIT was 1.24 billion versus Adjusted EBIT loss of 213 million for 3Q 2023. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2024 were 55% and 45%, respectively. This compares to 17% and -17% for the third quarter of 2023, respectively. Net cash generated from operating activities was USD 1.50 billion for the third quarter of 2024, compared to 338 million for the third quarter of 2023.
For the nine months ended 30 September, 2024 total revenues were USD 6.26 billion compared to $.96 billion for the first nine months of 2023. ZIM carried 2,768 thousand TEU in the first nine months of 2024, compared to 2,496 thousand TEU in 9M 2023. The average freight rate per TEU was USD 1,889 for the first nine months of 2024, compared to 1,235 for the first nine months of 2023.
Operating income was 1.87 billion, versus an operating loss of 2.46 billion; net income was 1.59 billion, compared to a net loss of 2.54 billion; adjusted EBITDA was 2.72 billion versus 859 million for the first nine months of 2023; adjusted EBIT was 1.90 billion compared to Adjusted EBIT loss of 373 million; adjusted EBITDA and adjusted EBIT margins for the first nine months of 2024 were 44% and 30%, respectively. This compares to 22% and -9% for the first nine months of 2023.
Net cash generated from operating activities was USD 2.60 billion for the first nine months of 2024, compared to 858 million for the first nine months of 2023.
Mr. Glickman concluded: “We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.”
