ZIM reports record annual revenues and profits
Eli Glickman, ZIM President & CEO
ZIM has announced that its total revenues for 2021 were US$10.73 billion, increased by around 2.5 times compared to the full year of 2020, primarily driven by an increase in revenues from containerised cargo.
The Israeli box carrier has reported a net income for the last year of US$4.65 billion, compared to US$524 million for the full year of 2020.
At the same time, the company’s operating income (EBIT) for the full year of 2021 was US$5.82 billion, while the operating margin was 54%, compared to 18% for the full year of 2020.
Additionally, ZIM said its adjusted EBITDA was US$6.6 billion for 2021 more than 5 times increased compared to 2020, and adjusted EBIT was US$5.82 billion for the full year of 2021, compared to US$729 million for the full year of 2020.
The Haifa-headquartered container line has noted its net cash generated from operating activities was US$5.97 billion, compared to US$881 million for 2020.
“In our first year as the only global container liner listed on New York Stock Exchange, ZIM has achieved historically extraordinary results and executed on commitments made during our IPO process,” pointed out Eli Glickman, ZIM president and CEO.
Glickman went on to comment, “ZIM’s agility and proactive strategies enabled us to unlock significant shareholder value during a time of unique and unprecedented challenges. With another quarter of exceptional financial performance, we generated our highest ever full year of revenues, adjusted EBITDA, net profit and operating cash flows, while once again delivering industry-leading margins. We also ended the year with a net positive cash position and strong financial flexibility.”
Furthermore, ZIM carried approximately 3.5 million TEU in the full year of 2021, boosted by almost 700,000TEU compared to 2020’s volumes. The average freight rate per TEU was US$2,786 for the full year of 2021.
“The many accomplishments of the past year and our remarkable performance, both financially and operationally, are the direct outcome of the unrivaled execution of our talented and dedicated management team and employees around the world, supported by the board,” said Yair Seroussi, chairman of ZIM’s board of directors.
During 2021 and subsequent to year end, ZIM entered into four charter agreements for a total of 36 newbuild vessels, as follows:
- 10 x 15,000 TEU LNG dual-fuel container vessels chartered from Seaspan, intended to serve on the Asia to US East Coast trade
- 18 x 7,000 TEU LNG dual-fuel container vessels chartered from Seaspan (15 vessels) and an affiliate of Kenon Holdings (3 vessels), intended to serve across various global trades
- 8 x 5,300 TEU wide beam vessels chartered from Navios Maritime Partners, intended to serve in trades between Asia and Africa
All the newbuildings are expected to be delivered to the company during 2023 and 2024, according to a statement.
“We made sizable investments in equipment to facilitate the movement of cargoes for customers, as well as meaningfully expanded our operating fleet capacity and launched 17 new lines since June 2020, resulting in ZIM’s year-over-year carried volume tripling the global volume growth rate,” noted Glickman.
In 2022, ZIM expects to generate adjusted EBITDA of between US$7.1 billion and US$7.5 billion and adjusted EBIT of between US$5.6 billion to US$6 billion.
ZIM’s boss concluded, “Notably, we are seizing the opportunity to be at the forefront of carbon intensity reduction among global liners, with 28 eco-friendly LNG dual-fuel container vessels due to be delivered to us between 2023 and 2024, which could account for 40% of our operating capacity. Our strategy to predominantly charter in vessels provides us a unique advantage, as we can easily transition our operating capacity without a legacy fleet to replace.”