ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) has reported $1.3 billion net profit for the third quarter of 2022 has topped the analysts estimates in the third quarter of 2022 but reported a reduction in the number of containers shipped and their average price, compared with the preceding quarter, and has cut its 2022 EBITDA forecast.
Net profit in the third quarter of 2022 amounted to $1.17 billion, down from $1.46 billion in the corresponding quarter of 2021. Earnings per share in the third quarter was $9.66, down from $12.16 in the third quarter of 2021, but above the analysts' estimate of $9.40 per share. Revenue in the third quarter was $3.23 billion, up 3% from the corresponding quarter of 2021, and $70 million above the analysts' forecasts.
In the first nine months of 2022, Zim reported net profit of $4.2 billion compared with $2.9 billion in the corresponding period of last year. Revenue in the first nine months of 2022 was $10.3 billion, up from $7.2 billion in the first nine months of 2021.
In the third quarter of 2022, Zim shipped 842,000 containers (TEU), down 5% from the corresponding quarter of 2021. The average price of a container shipped was $3,353, up 4% from the corresponding quarter of 2021.
ZIM says it will distribute a dividend of $354 million, or $2.9 per share, which represents 30% of net profit in the third quarter.
ZIM President & CEO Eli Glickman said, "Our third quarter and nine-month 2022 results reflect outstanding execution and elevated profitability. While market conditions remained volatile, we delivered strong EBITDA and EBIT margins and generated net income of $1.17 billion in the third quarter. Given our significant cash generation, and consistent with our prioritization of returning capital to shareholders, we have declared this year over $1.26 billion, or $10.55 per share, in dividends on account of 2022 results, including a Q3 dividend of approximately $354 million, or $2.95 per share."
He added, "Driven by macroeconomic and geopolitical uncertainties, the near-term outlook for container shipping has shifted and the normalization in freight rates has begun. Based on our current market expectations, we now forecast 2022 adjusted EBITDA of between $7.4 billion to $7.7 billion and adjusted EBIT of between $6.0 billion to $6.3 billion, and note that both will once again represent full-year records."
Published by Globes, Israel business news - en.globes.co.il - on November 16, 2022.
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