ZIM 2022 revenue up 12% at $12.5bn
2023 outlook shocker: ZIM expecting sharp decline in adjusted EBITDA of $1.8-2.2bn & adjusted EBIT of $100-500mn
NYSE-listed Israeli container carrier ZIM reported a flat net income of $4.63 billion ($4.6 billion in 2021) for 2022 on a 12 percent increase in revenue of $12.56 billion.
Adjusted EBITDA increased to $7.54 billion and adjusted EBIT was up at $6.15 billion, says an official release.
Carried volume dropped 3 percent to 3.3 million while average freight rate increased 16 percent to $3,240/TEU from $2,786/TEU in 2021.
Q4 income, rate drop sharply
ZIM reported a 75 percent decline in net income at $417 million for Q42022 compared to $1.7 billion in Q42021 on 41 percent drop in average freight rate to $2,122/TEU.
Revenue was down 37 percent to $2.2 billion and adjusted EBITDA dropped to $973 million from $2.4 billion in Q42021. "Carried volume in the fourth quarter was 823,000 TEUs, a year-over-year decrease of 4 percent."
Eli Glickman, President & CEO, ZIM
Eli Glickman, President & CEO, ZIM says: "2022 was an exceptional year for ZIM as we capitalised on both our differentiated strategy and the attractive market, driving record full year adjusted EBITDA and EBIT results. Returning cash to shareholders remains a priority for our company, and we are pleased to have drawn on our strong performance to declare a fourth quarter dividend of approximately $769 million, or $6.40 per share. In total, we will be providing shareholders dividends of $2.04 billion, representing approximately 44% of total 2022 net income.
"Over the past two years, we have taken important steps amidst a highly lucrative market to best position ZIM to execute in a more normalised trading environment. Specifically, we enhanced our vessel sourcing strategy to secure attractive newbuild capacity and improve our cost structure. We have also diversified our commercial presence to ensure ZIM is optimising its performance to create long-term sustainable shareholder value. Our chartered LNG-powered newbuild capacity is expected to significantly improve our cost structure throughout 2023 and beyond, strengthen our commercial prospects and advance our ESG objectives for ZIM and our customers. Consistent with our global niche strategy, we continuously review and adapt our network to swiftly respond to customers' changing needs, capitalise on shifting market dynamics and new growth opportunities and maximise profitability.
ZIM's total cash position increased $792 million to $4.6 billion as of December 31, 2022, the release said. Capital expenditure declined to $345 million compared with $1.01 billion for the year ended December 31, 2021.
2023 outlook grim
ZIM is expecting a sharp decline in adjusted EBITDA of $1.8-2.2 billion and adjusted EBIT of $100-500 million.
"While macroeconomic uncertainties, the precipitous decline in freight rates over the past few months and the supply-demand imbalance continue to drive a challenging near-term outlook for container shipping, we are confident in ZIM's strategy and believe we will generate positive EBIT in 2023," says Glickman. "For the full year, we expect to generate adjusted EBITDA between $1.8 billion to $2.2 billion and Adjusted EBIT between $100 million to $500 million. In 2023 and beyond, our focus on leveraging digital strategies, operating a high-quality sustainable fleet, and further implementing our global niche strategy positions us well to best serve our customers and generate long-term sustainable value for our shareholders."