ZIM increases 2024 guidance to EBIT of $2.15-2.45bn

NYSE-listed ZIM joined other carriers in increasing its 2024 earnings outlook on higher rates, improved volumes and specific focus on spot volumes on the Transpacific trade.

ZIM is now expecting an adjusted EBITDA of $3.3-3.6 billion and an adjusted EBIT of $2.15-$2.45 billion, says an official release.

Danish carrier Maersk had earlier raised its earnings outlook, and is expecting an underlying EBIT of $5.2-5.7 billion for the full year 2024 on the back of strong Q3 results combined with strong container market demand and the continuation of the Red Sea/Gulf of Aden situation. Maersk now expects global container market growth for the full year to be around six percent (previously 4-6 percent).

German carrier Hapag-Lloyd has raised its earnings forecast for the current financial year to EBITDA to be in the range of $4.6-5 billion and EBIT to be in the range of $2.4-2.8 billion.

Higher rates, volumes boost ZIM show
ZIM reported a net income of $1.13 billion for the third quarter ended September 2024 compared to a net loss of $2.27 billion in the same period last year on more than doubling of freight rates and higher volumes.

Total revenue more than doubled to $2.77 billion, and carried volume increased 12 percent to 970,000 TEUs, says an official release.

"Average freight rate per TEU in the third quarter was $2,480, a year-over-year increase of 118 percent."

Eli Glickman, President & CEO, ZIM says: "ZIM delivered strong third quarter results, as we again achieved record carried volumes contributing to our outstanding financial performance. We are pleased to share our success with our shareholders and declare a special dividend of $100 million on top of the regular 30 percent of quarterly net income dividend payout of $340 million, for a total dividend of $440 million. 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 capitalise on market opportunities moving forward. 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 $3.3 billion and $3.6 billion and adjusted EBIT between $2.15 billion and $2.45 billion.

"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."

For the nine months of 2024, net income zoomed to $1.6 billion on total revenue of $6.3 billion, up 158 percent.

"ZIM carried 2,768,000 TEUs in the first nine months of 2024 compared to 2,496,000 TEUs in the first nine months of 2023. The average freight rate per TEU was $1,889 for the first nine months of 2024 compared to $1,235 for the first nine months of 2023."