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ZIM generates record-high quarterly net income for Q1
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Net income amounted to US$1.7 million and adjusted EBITDA to $2.5 million
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Revenues rose 113% to $3.7 million year-on-year
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Volume increased 5% year-over-year, significantly above industry average
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Average freight rate per TEU doubled year-over-year
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Zim entered into multiple charter agreements for 17 newly-built container vessels, of which 3 are LNG dual-fuel powered
ZIM Integrated Shipping Services announced a record-high quarterly net income of US$1.7 million and adjusted EBITDA of $2.5 million, or a year-on-year increase of 190% and 209%.
In a statement, the Israel-based global container liner reported a year-on-year growth of 113% in first quarter revenues, or $3.7 million, driven by improved freight rates, as well as an increase in carried cargo volume.
Operating income (EBIT) was $2.2 million, a record rise of 228% from the first quarter of 2021, resulting from higher revenues which more than compensated for increased costs, mainly expenditure from bunkering and vessel chartering, the company said.
Volume in the first quarter reached 859,000 TEUs, a 5% hike from last year. Average freight rate per TEU was $3,848, an increase of 100% from last year.
“We increased our carried volume quarter-over-quarter during a time when overall industry volume decreased,” disclosed ZIM President and CEO Eli Glickman.
During the first quarter, ZIM entered into multiple charter agreements for a total of 17 newly-built container vessels, of which 3 are LNG dual-fuel powered. The vessels are expected to be delivered throughout 2023 and 2024.
“We have announced attractive chartering transactions for 17 newbuild vessels, securing modern and efficient tonnage particularly well-suited to serve on our expanded network of expedited services. Importantly, we will maintain flexibility to adjust our fleet size based on market conditions and be positioned at the forefront of carbon intensity reduction among global liners,” Glickman said.
“The vast majority of the new capacity ZIM will add to its fleet is LNG-powered, which ensures that we will be more carbon and cost efficient and allows us to offer customers a shipping solution aligned with their own carbon reduction targets,” he concluded.
