ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), a global container liner shipping company, announced today its consolidated results for the three months ended September 30, 2021.
Total revenues were $3.14 billion for the third quarter of 2021, compared to $1.01 billion for the third quarter of 2020, primarily driven by an increase in revenues from containerized cargo, reflecting increases in freight rates as well as in carried volume.
Operating income (EBIT) for this third quarter of 2021 was $1.86 billion, compared to $189 million for the prior third quarter of 2020. The operating margin for the third quarter of 2021 was 59%, compared to 19% in the third quarter of 2020.
Net income for the third quarter of 2021 was $1.46 billion, compared to $144 million for the third quarter of 2020. Net income for the third quarter of 2021 included a tax expense of $358 million.
Net cash generated from operating activities was $2.01 billion for the third quarter of 2021, compared to $245 million for the third quarter of 2020.
ZIM carried 884 thousand TEUs during the third quarter of 2021, compared to 762 thousand TEUs in the third quarter of 2020. The average freight rate per TEU was $3,226 for the third quarter of 2021, compared to $ 1,176 for the third quarter of 2020.
ZIM’s total cash and cash equivalents and investments in bank deposits and other investment instruments increased by $2.18 billion from $572 million as of December 31, 2020, to $2.76 billion on September 30, 2021.
Capital expenditures are net totaled $288 million for the third quarter of 2021, compared to $8 million for the prior third quarter of 2020.
Net debt decreased by $1.21 billion from $1.24 billion as of December 31, 2020, to $22 million as of September 30, 2021. ZIM’s net leverage ratio as of September 30, 2021, was 0.0x, compared to 1.2x as of December 31, 2020.
About ZIM
ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is a global container liner shipping company with leadership positions in the markets where it operates. Founded in Israel in 1945, ZIM is one of the oldest shipping lines, with over 75 years of experience, providing customers with innovative seaborne transportation and logistics services with a reputation for industry-leading transit times, schedule reliability, and service excellence.
The Company’s Board of Directors declared a cash dividend of approximately $296 million, or $2.50 per ordinary share, reflecting approximately 20% of Q3 2021 net income, to be paid on December 27, 2021, to holders of the ordinary shares as of December 16, 2021.
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CONSOLIDATED INCOME STATEMENTS |
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(U.S. dollars in thousands, except per share data) |
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Nine months ended |
Three months ended |
Year ended |
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|
2021 |
2020 |
2021 |
2020 |
2020 |
|
|
Income from voyages and related services |
7,262,304 |
2,630,850 |
3,135,958 |
1,012,505 |
3,991,696 |
|
Cost of voyages and related services |
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|
Operating expenses and cost of services |
(2,876,906) |
(2,038,970) |
(1,007,365) |
(716,757) |
(2,835,112) |
|
Depreciation |
(513,907) |
(204,322) |
(215,172) |
(68,511) |
(291,559) |
|
Gross profit |
3,871,491 |
387,558 |
1,913,421 |
227,237 |
865,025 |
|
Other operating income |
9,519 |
8,019 |
5,354 |
2,507 |
12,621 |
|
Other operating expenses |
(714) |
(642) |
(255) |
1,064 |
4,272 |
|
General and administrative expenses |
(183,910) |
(114,760) |
(60,375) |
(42,721) |
(163,210) |
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Share of profit of associates |
3,123 |
2,375 |
842 |
720 |
3,341 |
|
Results from operating activities |
3,699,509 |
282,550 |
1,858,987 |
188,807 |
722,049 |
|
Finance income |
9,082 |
1,379 |
3,383 |
(351) |
8,103 |
|
Finance expenses |
(131,648) |
(114,933) |
(41,452) |
(40,356) |
(189,363) |
|
Net finance expenses |
(122,566) |
(113,554) |
(38,069) |
(40,707) |
(181,260) |
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Profit before income taxes |
3,576,943 |
168,996 |
1,820,918 |
148,100 |
540,789 |
|
Income taxes |
(636,221) |
(11,195) |
(358,004) |
(3,696) |
(16,599) |
|
Profit for the period |
2,940,722 |
157,801 |
1,462,914 |
144,404 |
524,190 |
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Attributable to: |
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Owners of the Company |
2,935,201 |
152,915 |
1,461,146 |
142,424 |
517,961 |
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Non-controlling interest |
5,521 |
4,886 |
1,768 |
1,980 |
6,229 |
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Profit for the period |
2,940,722 |
157,801 |
1,462,914 |
144,404 |
524,190 |
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Earnings per share |
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|
Basic earnings per 1 ordinary share |
25.79 |
1.53(*) |
12.53 |
1.42(*) |
5.18 |
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Diluted earnings per 1 ordinary share |
24.79 |
1.47(*) |
12.16 |
1.36(*) |
4.96 |
