According to the freight forwarding network, ZIM now expects 2023 adjusted EBITDA of 1.2-0.1 billion US dollars and adjusted EBITDA loss of 0.6 billion -50 billion US dollars.
Haifa, Israel, 2023, 2023, 12/PRNewswire/-Global container liner shipping company ZIM Integrated Shipping Services Limited (NYSE: ZIM) has updated its full-year guidance. The Company now expects adjusted EBITDA of $0.2 billion to $0.1 billion and adjusted EBIT loss of $0.6 billion to $50 billion, compared to previous adjusted EBITDA guidance of $10 billion to $0.1 billion and a positive adjusted EBITDA of $0.8 billion to $0.2 billion.
ZIM's updated full-year guidance for 2023 is primarily due to continued weakness in freight rates for all of the Company's trade, particularly in the Trans-Pacific region, which is now expected to continue in the second half of 2023. As demand continues to slump, volume growth is also expected to be lower than originally forecast.
Eli Glickman, President and CEO of ZIM, said: "Recent container shipping market conditions remain challenging and demand is expected to remain subdued for the rest of the year. While our second quarter results are broadly in line with our expectations, we no longer expect freight rates in the second half of 2023 to be in line with seasonality as previously assumed. "
Mr. Glickman continued: "During this downturn, we will continue to actively manage and rationalize our fleet and services to maximize our cash position, while maintaining the customer-centric approach that is the hallmark of ZIM's success. We expect our strong balance sheet and ample cash will continue to serve ZIM well and allow us to maintain a long-term perspective. Going forward, we believe our cost-effective and fuel-efficient build-up capabilities, particularly our new LNG vessels, will significantly improve our cost structure and competitive position, allowing us to deliver sustainable long-term value to our customers and shareholders. "
ZIM plans to report its second quarter 2023 results and hold a conference call on August 16, 2023 (Wednesday) to discuss the quarterly results and provide an update on the company's situation.
Source: ZIM official website