ZIM Financial Results Q3 2024

Overview

• Company: ZIM Integrated Shipping Services Ltd.
• Report Date: November 20, 2024
• Period Covered: Third quarter of 2024, and guidance for the full year 2024.
• Significant Updates: Record financial performance, increased guidance, dividend announcements.

Financial Highlights Q3 2024

• Revenues: $2.77 billion, 117% YoY increase.
• Net Income: $1.13 billion (compared to a $2.27 billion loss in Q3 2023).
• Adjusted EBITDA: $1.53 billion, a YoY increase of 626%.
• Adjusted EBIT: $1.24 billion.
• Freight Rates: Average rate per TEU $2,480, a 118% YoY increase.
• Volume Growth: 12% increase YoY to 970 thousand TEUs.
• Net Debt: $2.70 billion as of September 30, 2024.

Guidance for Full Year 2024

• Increased Adjusted EBITDA guidance to $3.3 - $3.6 billion.
• Increased Adjusted EBIT guidance to $2.15 - $2.45 billion.

Dividends

• Total Dividend Declared: ~$440 million.
  • Regular Dividend: ~$340 million (30% of Q3 net income), $2.81/share.
  • Special Dividend: ~$100 million, $0.84/share.
• Per Share Distribution: $3.65.

CEO Remarks

• Eli Glickman, CEO: Highlights strong performance due to record volumes and strategic investments.
• Strategic Moves: Increased exposure to spot volumes in Transpacific trade.
• Forecasts profitable growth into 2025 with a modern fleet.

Financial Breakdown

Q3 2024 vs. Q3 2023

• Revenues: Increased from $1.27 billion to $2.77 billion.
• Operating Income (EBIT): Increased from a loss of $2.28 billion to $1.23 billion.
• Net Income: Swung from a loss of $2.27 billion to a profit of $1.13 billion.
• Adjusted EBITDA Margin: 55% (vs. 17%).
• Adjusted EBIT Margin: 45% (vs. -17%).

9M 2024 vs. 9M 2023

• Revenues: $6.26 billion (58% increase).
• Net Income: $1.59 billion (vs. a loss of $2.54 billion).
• Adjusted EBITDA: $2.72 billion (217% increase).
• Adjusted EBIT: $1.90 billion (vs. a loss).

Liquidity and Cash Flows

• Cash Position: Increased to $3.13 billion by September 2024.
• Capital Expenditures: $50 million in Q3 2024.
• Net Cash from Operating Activities: $1.50 billion in Q3 2024.
• Free Cash Flow: $1.45 billion in Q3 2024.

Strategic Outlook

• Final delivery of 46 newbuild containerships, including 28 LNG-powered vessels.
• Focus on emissions reduction and cost-effective fleet.

Investor and Media Contacts

• Investor Relations: Elana Holzman: +972-4-865-2300
• Media Contact: Avner Shats: +972-4-865-2520

Future Projections and Risks

• Cautions about forward-looking statements and market volatility.
• Non-IFRS Measures: Explains use and adjustments for financial metrics.

Conference Call Details

• Scheduled for Nov 20, 2024, at 8:00 AM ET, with webcast availability on ZIM's website.