Zim Integrated Shipping (ZIM) reported fourth-quarter results that topped Wall Street estimates Wednesday and announced a huge dividend. Zim stock jumped Wednesday, hitting a record high but closing just below an add-on buy point.
“In our first year as the only global container liner listed on New York Stock Exchange, ZIM has achieved historically extraordinary results and executed on commitments made during our IPO process,” said Eli Glickman, President, and CEO of Zim.
He also stated that the company generated its “highest ever full year of revenues, adjusted EBITDA, net profit and operating cash flows.”
Zim stock debuted on the NYSE in January 2021. Since its launch, Zim has steadily climbed as supply chain issues took center stage amid the Covid-19 pandemic and a massive shift in consumer spending.
ZIM stock leaped 9% early Wednesday, signaling a new high. Shares climbed 2.5% to 70.69 on Tuesday, rising off support at the 21-day moving average.
Fourth Quarter 2021 Highlights
The Israel-based container-freight fleet operator reported earnings of $14.17 per diluted share, beating FactSet analysts’ expectations for $13.19. Revenue jumped over 150% to $3.47 billion, also topping analyst expectations of $3.37 billion. Carried volume rose 7% year over year.
Net income for the fourth quarter was $1.71 billion (compared to $366 million in the fourth quarter of 2020), a year-over-year increase of 366%, or $14.17 per diluted share.
Revenues for the fourth quarter were $3.47 billion, a year-over-year increase of 155%; revenues for the full year were $10.73 billion.
Operating income (EBIT) for the fourth quarter was $2.12 billion, a year-over-year increase of 382%; operating income (EBIT) for the full year was $5.82 billion, a year-over-year increase of 706%.
Reconciliation items between operating income and Adjusted EBIT in the fourth quarter and full-year were minors.
Zim entered into charter agreements for 36 new vessels including 28 liquefied natural gas dual-fuel container ships during the year. The ships are due to be delivered to Zim throughout 2023 and 2024. Officials said the ships could eventually account for 40% of operating capacity.
Net cash generated from operating activities was $2.00 billion for the fourth quarter of 2021, compared to $414 million for the fourth quarter of 2020.
About ZIM
ZIM (NYSE: ZIM) is a global container liner shipping company with leadership positions in the markets in which it operates. Founded in Israel in 1945, ZIM is a veteran shipping liner, with decades of experience providing customers with innovative seaborne transportation and logistics services, a reputation for industry-leading transit times, schedule reliability, and service excellence. Additional information about ZIM is available at www.ZIM.com.
