ZIM posted revenue of $1.93 billion in the second quarter
Star Line (ZIM), the ninth largest liner company in the world, announced its unaudited financial results for the second quarter of 2024 on August 19.
During the reporting period, benefiting from the surge in spot freight rates caused by the Red Sea crisis, the second quarter achieved revenue of $1.93 billion, net income of $373 million (year-ago loss of $213 million), adjusted EBITDA of $766 million and adjusted EBIT of $488 million; At the same time, ZIM significantly raised its full-year 2024 guidance and expects full-year adjusted EBITDA of $2.6 billion to $3 billion.
In addition, ZIM's cargo volume increased by 11% in the second quarter to 952,000 TEUs, up 10.7% year on year, a record high, and the average freight rate per container was $1,674, up 40.3% year on year.
Eli Glickman, President and Chief Executive Officer of ZIM, said, "We are pleased with our strong performance in the second quarter, which was driven by superior strategic execution that enabled us to deliver a record high volume of shipments, up 11% year-over-year." "The actions we have taken to increase capacity and optimize our cost structure continue to drive strong financial results. "We achieved net income of $373 million, leveraging our differentiated strategy and flexibility amid continued market strength." While delivering on capital returns, ZIM always puts shareholder interests first. ZIM announced a generous dividend of $0.93 per share, totaling $112 million, representing 30% of ZIM's second quarter net income, reflecting Zim's strong commitment to shareholders and its confidence in the company's future earnings potential.
"While market fundamentals still point to supply growth substantially outpacing demand, we are confident that we have built a resilient business with a transformed fleet." The CEO of Star Line further pointed out that as the end of the year approaches, we are on the verge of a successful completion of our aggressive new shipbuilding program. At that time, we will receive the final eight, for a total of 46 modern and energy-efficient container ships, 28 of which will be powered by environmentally friendly LNG. This expansion will provide solid support for ZIM's goal of achieving double-digit freight volume growth by 2024 and ensure that we are well positioned to drive future profitable growth, demonstrating the firm pace of the company's sustainable shipping development path."
During the reporting period, benefiting from the surge in spot freight rates caused by the Red Sea crisis, the second quarter achieved revenue of $1.93 billion, net income of $373 million (year-ago loss of $213 million), adjusted EBITDA of $766 million and adjusted EBIT of $488 million; At the same time, ZIM significantly raised its full-year 2024 guidance and expects full-year adjusted EBITDA of $2.6 billion to $3 billion.
In addition, ZIM's cargo volume increased by 11% in the second quarter to 952,000 TEUs, up 10.7% year on year, a record high, and the average freight rate per container was $1,674, up 40.3% year on year.
Eli Glickman, President and Chief Executive Officer of ZIM, said, "We are pleased with our strong performance in the second quarter, which was driven by superior strategic execution that enabled us to deliver a record high volume of shipments, up 11% year-over-year." "The actions we have taken to increase capacity and optimize our cost structure continue to drive strong financial results. "We achieved net income of $373 million, leveraging our differentiated strategy and flexibility amid continued market strength." While delivering on capital returns, ZIM always puts shareholder interests first. ZIM announced a generous dividend of $0.93 per share, totaling $112 million, representing 30% of ZIM's second quarter net income, reflecting Zim's strong commitment to shareholders and its confidence in the company's future earnings potential.
"While market fundamentals still point to supply growth substantially outpacing demand, we are confident that we have built a resilient business with a transformed fleet." The CEO of Star Line further pointed out that as the end of the year approaches, we are on the verge of a successful completion of our aggressive new shipbuilding program. At that time, we will receive the final eight, for a total of 46 modern and energy-efficient container ships, 28 of which will be powered by environmentally friendly LNG. This expansion will provide solid support for ZIM's goal of achieving double-digit freight volume growth by 2024 and ensure that we are well positioned to drive future profitable growth, demonstrating the firm pace of the company's sustainable shipping development path."
