ZIM reports record financial results for 2021
ZIM Integrated Shipping Services Ltd., a global container liner shipping company, announced its consolidated results for the three and twelve months ended December 31, 2021.
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 share3; net income for the full year was $4.65 billion (compared to $524 million for the full year of 2020), a year-over-year increase of 787%, or $39.02 per diluted share.
Adjusted EBITDA for the fourth quarter was $2.36 billion, a year-over-year increase of 345%; Adjusted EBITDA for the full year was $6.60 billion, a year-over-year increase of 537%
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 minor
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, a year-over-year increase of 169%
Carried volume in the fourth quarter was 858 thousand TEUs, a year-over-year increase of 7%. Carried volume in the full year was 3,481 thousand TEUs, a year-over-year increase of 23%, significantly above industry average growth
Average freight rate per TEU in fourth quarter was $3,630, a year-over-year increase of 139%. Average freight rate per TEU in the full year was $2,786, a year-over-year increase of 127%
Net leverage4 ratio of 0.0x at December 31, 2021, compared to 1.2x at December 31, 2020; reached net cash4 position of $509 million
Declared approximately $2.04 billion, or $17.00 per share dividend, representing 50% of 2021 net income on a cumulative basis (including interim quarterly dividend already distributed on account of Q3 2021 results). The dividend will be paid on April 4, 2022 to holders of ZIM ordinary shares as of March 23, 2022
During 2021 and subsequent to year end, entered into multiple charter agreements for a total of 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
Subsequent to year end, announced extension and modification of operational cooperation agreement with the 2M alliance partners
Total revenues were $3.47 billion for the fourth quarter of 2021, compared to $1.36 billion for the fourth quarter of 2020, primarily driven by an increase in revenues from containerized cargo, reflecting an increase in freight rates as well as carried volume.
Operating income (EBIT) for the fourth quarter of 2021 was $2.12 billion, compared to $439 million for the fourth quarter of 2020. Operating margin for the fourth quarter of 2021 was 61%, compared to 32% in the fourth quarter of 2020.
Net income for the fourth quarter of 2021 was $1.71 billion, compared to $366 million for the fourth quarter of 2020. Net income for the fourth quarter of 2021 included a tax expense of $374 million.
Adjusted EBITDA was $2.36 billion for the fourth quarter of 2021, compared to $531 million for the fourth quarter of 2020. Adjusted EBIT was $2.11 billion for the fourth quarter of 2021, compared to $440 million for the fourth quarter of 2020. Adjusted EBITDA and Adjusted EBIT margins for the fourth quarter of 2021 were 68% and 61%, respectively. This compares to 39% and 32% for the fourth quarter of 2020.
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.
ZIM carried 858 thousand TEUs in the fourth quarter of 2021, compared to 799 thousand TEUs in the fourth quarter of 2020. The average freight rate per TEU was $3,630 for the fourth quarter of 2021, compared to $1,518 for the fourth quarter of 2020.
Financial and Operating Highlights for the Full Year Ended December 31, 2021
Total revenues were $10.73 billion for the full year of 2021, compared to $3.99 billion for the full year of 2020, primarily driven by an increase in revenues from containerized cargo, reflecting increases in freight rates and carried volume.
Operating income (EBIT) for the full year of 2021 was $5.82 billion, compared to $722 million for the full year of 2020. Operating margin for the full year of 2021 was 54%, compared to 18% for the full year of 2020.
Net income for the full year of 2021 was $4.65 billion, compared to $524 million for the full year of 2020. Net income for the full year of 2021 included a tax expense of $1.01 billion.
Adjusted EBITDA was $6.60 billion for the full year of 2021, compared to $1.04 billion for the full year of 2020. Adjusted EBIT was $5.82 billion for the full year of 2021, compared to $729 million for the full year of 2020. Adjusted EBITDA and Adjusted EBIT margins for the full year of 2021 were 61% and 54%, respectively. This compares to 26% and 18% for the full year of 2020.
Net cash generated from operating activities was $5.97 billion for the full year of 2021, compared to $881 million for the full year of 2020.
ZIM carried 3,481 thousand TEUs in the full year of 2021, compared to 2,841 thousand TEUs in the full year of 2020. The average freight rate per TEU was $2,786 for the full year of 2021, compared to $1,229 for the full year of 2020.
ZIM's total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) increased by $3.24 billion from $572 million as of December 31, 2020 to $3.81 billion at December 31, 2021. Capital expenditures totaled $1.01 billion for the year ended December 31, 2021, compared with $43 million for the year ended December 31, 2020. Net debt decreased by $1.74 billion from $1.24 billion as of December 31, 2020 to a net cash position of $509 million as of December 31, 2021. ZIM's net leverage ratio as of December 31, 2021 was 0.0x, compared to 1.2x as of December 31, 2020.
In accordance with the Company's dividend policy, ZIM's Board of Directors declared a cash dividend of approximately $2.04 billion, or $17.00 per ordinary share, reflecting approximately 50% of 2021 net income on a cumulative basis, including the $2.50 per share interim dividend paid in December 2021 on account of Q3 2021 results. The dividend will be paid on April 4, 2022, to holders of record of the ordinary shares as of March 23, 2022.
About ZIM
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.
