Shares of ZIM Integrated Shipping Services Ltd. (ZIM) saw a significant 17% increase on Monday following the release of the company’s robust second-quarter earnings and an upward revision of its full-year profit forecast.
ZIM reported net profits of $373 million for the second quarter, a remarkable turnaround from a loss of $213 million during the same period last year and up from $92 million in the previous quarter. The company’s operating profits reached $488 million, driven by a 48% year-on-year increase in revenue to $1.9 billion.
The Israeli shipping carrier experienced a surge in both rates and volumes, with average rates per twenty-foot equivalent unit (TEU) rising to $1,674, up from $1,452 in the first quarter and $1,193 a year earlier. Quarterly shipping volumes hit a record 952,000 TEU, marking an 11% increase year-on-year and a 12% rise quarter-on-quarter.
In the past 12 months, ZIM’s fleet capacity has expanded by 20%, adding 125,000 TEU. The company is on track to achieve its goal of a double-digit increase in volumes for 2024.
Alongside these strong results, ZIM has raised its financial outlook for 2024, now predicting adjusted operating profits (EBIT) of between $1.45 billion and $1.85 billion, a significant improvement from its earlier forecast of $0 to $400 million. As the company returns to profitability, it has resumed dividend payouts, with a total of $112 million allocated for the second quarter, set at 30% of net profit.
Source: ZIM, Alphaliner
