ZIM Integrated Shipping Q4 Results Down, But Top Estimates; Stock Up In Pre-market

ZIM Integrated Shipping Services Ltd. (ZIM), an Israeli container liner shipping company, reported Monday that its fourth-quarter net income fell to $417 million from last year's $1.71 billion.

Earnings per share were $3.44, down from $14.17 in the fourth quarter of 2021.

On average, four analysts polled by Thomson Reuters expected earnings of $3.05 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA was $973 million, a year-over-year decrease of 59 percent.

Revenues for the fourth quarter were $2.19 billion, down 37 percent from prior year's $3.47 billion. Analysts expected revenues of $2.11 billion for the quarter.

Carried volume was 823 thousand TEUs, a year-over-year decrease of 4 percent.

Further, ZIM's Board of Directors declared a cash dividend of $6.40 per ordinary share. The dividend will be paid on April 3 to holders of ZIM ordinary shares as of March 24.

Looking ahead for fiscal 2023, the company expects adjusted EBITDA of $1.8 billion to $2.2 billion and adjusted EBIT of $100 million to $500 million.

In fiscal 2022, adjusted EBITDA was $7.54 billion and adjusted EBIT was $6.15 billion.

Eli Glickman, ZIM President & CEO, said, "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.... In 2023 and beyond, our focus on leveraging digital strategies, operating a high-quality sustainable fleet, and further implementing our global niche strategy..."

In pre-market activity on the NYSE, ZIM shares were trading at $22.85, up 16.8 percent.

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