To Star (ZIM) March 13, 2022 fourth quarter and full year unaudited financial results.
It is that for the whole year of 2022, the container volume of satellite carriers will reach 3.38 million TEU, down 2.9 percent from the same period last year. Freight per box reached 3240 billion US dollars, up 16.3 percent from the same period last year. Annual operating income reached 12.562 billion billion US dollars, up 17.1 percent from the same period last year. Earnings before interest and tax (EBIT) was 6.136 billion billion US dollars, up 5.5 percent from the same period last year. Pre-tax profit was 6.027 billion; full-year net profit reached $4.629 billion or $38.35 per share, down 0.4 percent year-on-year; adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $7.541 billion, up 14.3 percent year-on-year; and adjusted EBIT was $6.145 billion, up 5.6 percent year-on-year. Adjusted EBITDA and EBIT margins for the full year were 60% and 49%, respectively. For the full year 2022, free cash flow to Star reached $5.796 billion, up 18.8 percent year-on-year.
From the fourth quarter of the alone, the volume of containers transported by satellite reached 823000 TEU, down 2.3 percent from the previous month and 4.1 percent from the previous year. Freight per box reached 2122 US dollars, down 36.7 percent from the previous month and 41.5 percent from the previous year. Realized operating income of 2.189 billion US dollars, down 32.2 percent from the previous month and 36.8 percent from the previous year. Earnings before interest and tax were 0.585 billion US dollars, down 62.1 percent from the previous month and 72.4 percent from the previous year; pre-tax profit was US $0.558 billion, down 63.1 per cent from the previous month and 73.2 per cent from the previous year; net profit reached US $0.417 billion, down 64.2 per cent from the previous month and 75.6 per cent from the previous year; adjusted EBITDA was US $0.973 billion, down 49.7 per cent from the previous month and 58.8 per cent from the previous year; adjusted EBIT was US $0.585 billion, down 62.4 per cent from the previous month and 72.3 per cent from the previous year; adjusted EBITDA and EBIT margin were 44% and 27%, respectively.
Dividend Policy
Eli Glickman, President and CEO of Estar, said, "2022 is a special year for Estar. Thanks to the differentiation strategy and attractive market, we achieved record adjusted EBITDA and EBIT for the whole year. Dividends remain a priority for the Company and we are pleased to take advantage of our strong results to declare a fourth quarter dividend of approximately $0.769 billion, or $6.40 per share. For the full year, the company's dividend reached $2.04 billion, accounting for about 44% of the full-year net profit. "
Glickman Eli added, "In the past two years, Estar has taken important steps during the boom in the container transportation market to enable Estar to develop sustainably after the market has normalized. In particular, Estar has taken to lock in new shipbuilding capacity on attractive terms and improve the cost structure. We also diversify our business to ensure sustainability and create long-term value for our shareholders. According to Yixing's global niche strategy, the network is constantly reviewed and adjusted to quickly respond to the changing needs of customers, take advantage of changing market dynamics and new growth opportunities, and maximize profitability. "
2023 full-year results expected
Mr. Eli Glickman concluded, "Despite the global macroeconomic and geopolitical uncertainties that have led to a sharp decline in freight rates over the past few months, and the supply-demand imbalance that continues to drive the challenging short-term outlook for the container market, we are confident in Estar's strategy and believe that Estar will continue to deliver positive EBIT in 2023. For the full year 2023, adjusted EBITDA is expected to be $1.8 billion to $2.2 billion and adjusted EBIT is expected to be $0.1 billion to $0.5 billion. "
looking at the data alone, this means that Yixing expects EBITDA to plunge 71-76% and EBIT to fall 92-99% this year. In other words, if you think the shipping market performed poorly in the fourth quarter of 2022, Yixing expects the EBIT for the whole year of 2023 to be less than the fourth quarter of 2022. In terms of stars, although the number of cases carried is expected to increase year-on-year and fuel costs are slightly lower, the average single-case freight rate is expected to be significantly lower.
Star differentiation profit strategy
is unique among global liner companies and does not strive to operate in every market or compete in size and volume. Instead, its operational strategy focuses on: providing the best service to customers only in selected niche markets with competitive advantages, truly being "customer-centric" and maximizing market position and profitability. Specifically, the star will focus on two important routes. That is, the Asia-US East route and the Asian intra-regional route.
According to the latest Alphaliner data, ranks 10th among the top 100 global liner companies in terms of capacity, operating 139 container ships with a total capacity of 562100 TEU, including 8 self-owned ships and 131 chartered ships. At the same time, 41 new ships were signed with Star, about 351200 TEU.
Source: Shipping Industry