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ZIM Integrated Shipping Services LtdZIM reported a fourth-quarter FY22 sales decline of 37% year-on-year to $2.19 billion, beating the consensus of $2.11 billion.
The company attributed the revenue decline primarily to a decrease in freight rates.
Carried volume in Q4 was 823 thousand TEUs, a year-over-year decrease of 4%.
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.
ZIM’s total cash position improved from $3.81 billion as of Dec. 31, 2021, to $4.60 billion as of Dec. 31, 2022.
Adjusted EBITDA decreased 58.8% Y/Y to $973 million; the margin was 44%, down from 68% in 4Q21.
The average freight rate per TEU in Q4 was $2,122 (-42% Y/Y).
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 Apr. 3, 2023, to holders of ZIM ordinary shares as of Mar. 24, 2023. The ex-dividend date for this dividend distribution will be Apr. 4, 2023.
FY23 Outlook: ZIM expects 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 throughout 2023 and beyond, strengthen our commercial prospects and advance our ESG objectives for ZIM and our customers,” commented Eli Glickman, ZIM President & CEO.
Price Action: ZIM shares are trading higher by 13.44% at $22.20 in the premarket on Monday.
