ZIM makes strong 2022 forecast after $4.65bn 2021 profit

Container line ZIM has reported strong earnings and profit for 2021, with forecasts for similar performance in 2022.

The company’s $4.65bn profit is a record high, up 787% from 2020’s $524m in 2021. The result comes from an adjusted EBITDA of $6.60bn and adjusted EBIT of $5.82bn. ZIM forecast an adjusted EBITDA of between $7.1bn and $7.5bn in 2022 and a $5.6bn to 6.0bn EBIT.

Revenues for the year rose 169% on-year to $10.73bn, with a 23% increase in carried volume to 3.5m teu and 127% increase in average freight rate to $2,786 per teu.

Notable developments for ZIM in 2021 included multiple charter agreements for newbuild vessels and the acquisition of secondhand tonnage. ZIM said it had entered into agreements for a total of 36 newbuilds, 28 of which are dual-fuel LNG ready.

Yair Seroussi, Chairman of the Board of Directors, said: “2021 was a transformative year for ZIM. We kicked off the year with listing our shares on the world’s leading capital market in New York, and have not looked back since. The many accomplishments of the past year and our remarkable performance, both financially and operationally, are the direct outcome of the unrivaled execution of our talented and dedicated management team and employees around the world, supported by the Board.

“In 2021, we took important steps to best position ZIM for long term enduring growth and value creation for our shareholders. We remain focused on maintaining our strong execution and agility in 2022 and beyond, while advancing the highest standards of corporate governance and responsibility.”

Eli Glickman, ZIM President & CEO, said: “Today, ZIM is commercially and operationally stronger than ever making us more optimistic about our future than ever before. We are excited to carry the exceptional momentum of 2021 forward into 2022, and well beyond. Notably, we are seizing the opportunity to be at the forefront of carbon intensity reduction among global liners, with 28 eco-friendly LNG dual-fuel container vessels due to be delivered to us between 2023 and 2024, which could account for 40% of our operated capacity. Our strategy to predominantly charter in vessels provides us a unique advantage, as we can easily transition our operating capacity without a legacy fleet to replace.”

Source: Seatrade Maritime News