Zim shipping brings in $373m net profit in second quarter of 2024.

Israeli global shipping firm ZIM reported revenues of $1.93 billion and a net profit of $373 million for the second quarter of 2024 while also raising its forecast for the year. The company saw an 11% growth rate and reached a record cargo volume of 952,000 containers (TEU).

Following this strong performance, ZIM has revised its 2024 outlook, now expecting adjusted EBITDA between $2.6 billion and $3 billion and adjusted EBIT from $1.45 billion to $1.85 billion. In addition, the company announced a dividend of $112 million, or $0.93 per share.

"We are pleased with our excellent performance in the second quarter, which demonstrates the optimal execution of our strategy that led to 11% growth and record cargo volumes," said ZIM's President and CEO, Eli Glickman. "The measures we've taken to increase our transport capacity and streamline the company’s cost structure continue to yield strong financial results."

Glickman highlighted the company's net profit of $373 million, crediting it to ZIM's distinctive strategy and its operational and commercial flexibility, which allowed it to capitalize on favorable market conditions.

"In line with our commitment to maximizing shareholder returns, we announced a dividend of $0.93 per share, or $112 million, representing 30% of our second-quarter profits," he added. He also emphasized the benefits of ZIM’s strategic move to increase its exposure to spot prices on North American trade routes. "This decision resulted in significant profits as the pricing environment remained higher than expected for an extended period."

A brighter second half

Looking ahead, Glickman shared an optimistic outlook: "We expect stronger performance in the second half of 2024 compared to the first half due to ongoing supply constraints from the unresolved Red Sea crisis, coupled with positive demand trends. As a result, we have significantly raised our 2024 forecast, anticipating adjusted EBITDA from $2.6 billion to $3 billion and adjusted EBIT between $1.45 billion and $1.85 billion."

He concluded, "Despite market conditions suggesting that supply growth will far outpace demand, we are confident in ZIM's business resilience, underpinned by our upgraded fleet. By year’s end, we will complete our plan to equip the company with new ships, receiving the final eight of 46 state-of-the-art, energy-efficient vessels, including 28 LNG-powered ships. We are on track to meet our double-digit cargo volume growth target for 2024, and we are well-positioned for continued profitable growth in the future."