Reported revenue of $1.4 billion, net loss of $58 million, adjusted EBIT of $0.373 billion, adjusted EBIT loss of $14 million Reiterate full-year 2023 guidance: Expected adjusted EBIT of $1.8 billion to $2.2 billion, adjusted EBIT of $0.1 billion to $0.5 billion, HAIFA, Israel, May 22, 2023/PRNewswire/-- Global container liner shipping company ZIM Integrated Shipping Services Limited (NYSE: ZIM) today reported consolidated results for the three months ended March 31, 2023.
2023 First Quarter Highlights
First quarter net loss of $580000 (1 year first quarter net income of $71.12022 billion), or diluted loss per share of $0.50 [3](compared to 14 year first quarter diluted earnings per share of $19.2022)
Q1 Adjusted EBITDA of $37.385 billion, down <>%
The loss from operations (EBIT) for the first quarter of was $20000, compared to $2022 billion in the first quarter of 243. Reconciliation items between first quarter operating income and adjusted EBIT are negligible.
First-quarter revenue was $1.374 billion, down 63%;
The first quarter carrying volume was 769000 TEUs, down 10%;
In the first quarter, the average freight rate per TEU was 1390 US dollars, down 64%;
As of March 31, 2023, the net leverage ratio was 0.1 times, as of December 31, 2022 0.0 times;
Net debt was $0.381 billion, compared to net cash as of December 31, 2022 of $0.279 billion.
Eli Glickman, president and chief executive officer of ZIM, said: "Following a record year of adjusted EBITDA and EBIT, ZIM's first quarter results reflect a significant decline in freight rates and weak demand, particularly in the trans-Pacific trade, which began last year. "While the near-term outlook for container shipping remains challenging, the proactive measures we have taken during our previous lucrative market period allow us to better address these challenges now, and we believe our differentiation strategy will ultimately deliver long-term sustainable value for shareholders."
Mr. Glickman added, "In order to improve our commercial and operational resilience, we have adjusted our vessel sourcing strategy to improve our cost structure and added fuel-efficient new build tonnage, which will revolutionize our fleet profile and advance our ESG objectives. These include ten 15,000 TEU dual-fuel LNG vessels, ideally suited for our core Asia to US East Coast service, and 36 smaller, more versatile vessels, 18 of which are also dual-fuel LNG, which will enable ZIM to operate a fleet that is best suited for our trade and services. At the same time, our strong balance sheet and ample liquidity further give us confidence that even in the current market headwinds, the company will operate in a strong position.
Mr. Glickman concluded: "Despite macro and industry headwinds, we expect positive EBIT growth in 2023. We expect demand to begin to recover in the second half of this year and inventory replenishment to improve freight rates. As a result, for 2023, we reiterate that we shared adjusted EBITDA between $0.1 billion and $0.8 billion earlier in the year, and adjusted EBITDA between $0.2 billion and $0.2 billion.
Source: ZIM official website