ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) today published strong financial results for 2022, although 2023 has opened in a more challenging way. ZIM reported revenue of $12.56 billion in 2022, up 17% from 2021. Net profit in 2022 was $4.63 billion ($38.35 per share) just below the record profit of $4.65 billion reported in 2021. Adjusted EBITDA for 2022 was $7.54 billion, a year-over-year increase of 14%.
However, towards the end of 2022 and into 2023, ZIM has been coping with a more challenging environment. Shipping prices have been falling and influencing results. Average freight rate per TEU in 2022 was $3,240, falling to $2,122 in the fourth quarter of 2022 and $1,514 today. ZIM shipped 3.4 million containers in 2022, down from 3.5 million in 2021.
In 2023, ZIM sees adjusted EBITDA of between $1.8 billion and $2.2 billion and adjusted EBIT of between $100 to $500 million.
ZIM CEO Eli Glickman said, "2022 was an exceptional year for ZIM, as we capitalized on both our differentiated strategy and the attractive market, driving record full year Adjusted EBITDA and EBIT results. Returning cash to shareholders remains a priority for our company, and we are pleased to have drawn on our strong performance to declare a fourth quarter dividend of approximately $769 million, or $6.40 per share. In total, we will be providing shareholders dividends of $2.04 billion, representing approximately 44% of total 2022 net income."
ZIM's increased its workforce by 9% in 2022 to 4,830 with 17% of employees in Israel.
ZIM's share price is up 10.5% on Wall Street today at $21.63, giving a market cap of $2.6 billion.
Published by Globes, Israel business news - en.globes.co.il - on March 13, 2023.
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