ZIM Integrated Shipping Shares Rise After Top-Estimating Q4 Results

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  • ZIM Integrated Shipping Services Limited (NYSE: ZIM) reported a 37% year-over-year decline in sales in the fourth quarter of FY22, to $2.19 billion. Breaking the consensus of $2.11 billion.

  • The company attributed the decline in revenue mainly to reduction in freight rates.

  • The volume carried in Q4 was 823 thousand TEU, a decrease of 4% year-on-year.

  • EPS of $3.44 beat the consensus of $3.05.

  • Adjusted EBIT margin was 27% compared to 61% a year ago, and adjusted EBIT declined 72.3% Y/Y to $585 million for the quarter.

  • The total cash position of ZIM increased from $3.81 billion as on December 31, 2021 to $4.60 billion as on December 31, 2022.

  • Adjusted EBITDA declined 58.8% Y/Y to $973 million; Margin was 44%, down from 68% in 4Q21.

  • The average freight rate per TEU was $2,122 (-42% Y/Y) in Q4.

  • Net cash generated from operating activities was $1.07 billion in Q4, compared to $2 billion a year ago.

  • Dividend: ZIM’s board declared a cash dividend of ~$769 million, or $6.40 per share, payable on April 3, 2023, to holders of ZIM ordinary shares through March 24, 2023. The ex-dividend date for this dividend distribution will be April 4. 2023.

  • FY23 Outlook: ZIM is expected to generate adjusted EBITDA of $1.8 billion – $2.2 billion and adjusted EBIT of $100 million – $500 million.

  • “Our chartered LNG-powered newbuild capacity is expected to significantly improve our cost structure in 2023 and beyond, strengthen our business prospects and advance our ESG objectives for ZIM and our customers,” said Eli Glickman, ZIM President and CEO. Will carry on.”

  • Price Action: ZIM shares are trading up 13.44% at $22.20 in the premarket on Monday.

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