ZIM announces record 2021 numbers, bullish on 2022
Average freight rate per TEU more than doubled to $2,786 for 2021 as against $1,229 for 2020.
NYSE-listed Israeli carrier ZIM Integrated Shipping Services today reported total revenue of $10.73 billion for 2021 compared to $3.99 billion for 2020 - an increase of 168 percent driven by an increase in revenue from containerised cargo, increases in freight rates and carried volume.
Net income for the full year was $4.65 billion (including a tax expense of $1.10 billion) compared to $524 million for 2020.
Adjusted EBITDA came in at $6.60 billion as against $1.04 billion for 2020, and adjusted EBITDA margin was 61 percent. Operating margin for the full year of 2021 was 54 percent compared to 18 percent last year.
The bullishness continues for ZIM, and the carrier is projecting full year (2022) guidance of adjusted EBITDA between $7.1 billion and $7.5 billion - an increase of 7-13 percent from 2021.
Super operations in 2021
ZIM carried 3.48 million TEUs in 2021 compared to 2.84 million TEUs in 2020, an increase of 23 percent. The average freight rate per TEU more than doubled to $2,786 for 2021 as against $1,229 for 2020.
During 2021 and subsequent to year end, ZIM signed multiple charter agreements for 36 newbuild vessels of which 28 are LNG dual-fuel container vessels. The vessels are due to be delivered to ZIM throughout 2023 and 2024.
ZIM has also announced an extension and modification of the operational cooperation agreement with the 2M alliance partners.
"2021 was a transformative year for ZIM," says Chairman Yair Seroussi. "We kicked off the year by listing our shares on the world's leading capital market in New York, and have not looked back since. The many accomplishments of the past year and our remarkable performance, both financially and operationally, are the direct outcome of the unrivalled execution of our talented and dedicated management team and employees around the world, supported by the Board. In 2021, we took important steps to best position ZIM for long term enduring growth and value creation for our shareholders. We remain focused on maintaining our strong execution and agility in 2022 and beyond, while advancing the highest standards of corporate governance and responsibility."
"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," says President & CEO Eli Glickman. "Importantly, we made sizable investments in equipment to facilitate the movement of cargoes for customers as well as meaningfully expanded our operating fleet capacity and launched 17 new lines since June 2020, resulting in ZIM's year-over-year carried volume tripling the global volume growth rate. We also returned substantial capital to shareholders, highlighted by a full year dividend of $19.50 per share, reflective of 50 percent of our 2021 net income. In total, including our special dividend paid in September 2021, we will return to shareholders approximately $2.6 billion or $21.50 per share since our IPO, which represents approximately 30 percent of our current market cap and approximately 50 percent higher than our IPO market cap."
Glickman concluded: "We are excited to carry the exceptional momentum of 2021 forward into 2022, and well beyond. Notably, we are seizing the opportunity to be at the forefront of carbon intensity reduction among global liners with 28 eco-friendly LNG dual-fuel container vessels due to be delivered to us between 2023 and 2024, which could account for 40 percent of our operating capacity. Our strategy to predominantly charter in vessels provides us a unique advantage as we can easily transition our operating capacity without a legacy fleet to replace. Complementing our ESG objectives, we continue to invest in digital initiatives and disruptive technologies and further strengthen our commercial prospects to drive long-term profitable growth, while maintaining our disciplined approach to capital allocation to maximise value for all of ZIM's stakeholders."
ZIM has hard cash
2021 turned out to be a cash haul for ZIM - net cash generated from operating activities was $5.97 billion compared to $881 million in 2020.
ZIM's total cash position (including cash and cash equivalents and investments in bank deposits and other investment instruments) increased to $3.81 billion at the end of December 31, 2021. Capital expenditures totaled $1.01 billion compared with $43 million for 2020. Net debt decreased from $1.24 billion to a net cash position of $509 million as of December 31, 2021.