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Thanks To Covid-19 Zim Has Best Year

Generates Record Full Year Net Income of $524 Million

– ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), a global container liner shipping company, announced today its consolidated results for the three and twelve months ended December 31, 2020.

Fourth Quarter and Full Year 2020 Highlights

  • Net income for the fourth quarter was $366.4 million (compared to $1.2 million in the fourth quarter of 2019), or $3.65 per share[1]; net income for the full year was $524.2 million (compared to a loss of $13.0 million for the full year of 2019), or $5.18 per share 
  • Adjusted EBITDA[2] for the fourth quarter was $531.3 million, a year-over-year increase of 360%; Adjusted EBITDA for the full year was $1.04 billion, a year-over-year increase of 168%
  • Operating income (EBIT) for the fourth quarter was $439.4 million, a year-over-year increase of 883%; operating income (EBIT) for the full year was $722 million, a year-over-year increase of 372%
  • Adjusted EBIT for the fourth quarter was $439.2 million, a year-over-year increase of 827%; Adjusted EBIT for the full year was $728.6 million, a year-over-year increase of 389%
  • Revenues for the fourth quarter were $1.36 billion, a year-over-year increase of 64%; revenues for the full year were $3.99 billion, a year-over-year increase of 21%
  • ZIM carried 2,841 thousand TEUs in 2020, a year-over-year increase of 1%
  • The average freight rate per TEU in 2020 was $1,229, a year-over-year increase of 22%
  • Net leverage ratio[3] of 1.2x at December 31, 2020
  • Subsequent to year end, completed IPO, raising $204 million in net proceeds 
  • Subsequent to year end, announced strategic long-term chartering agreement with Seaspan for ten “green” LNG-fueled vessels demonstrating ZIM’s commitment to reducing its carbon footprint and leading environment-friendly practices in the shipping industry  

Mr. Yair Seroussi, Chairman of the Board of Directors stated, “ZIM’s IPO earlier this year was the culmination of many months of hard work and dedication by ZIM’s management and employees in collaboration with the Board of Directors and marks the successful turnaround the Company has undergone over the past few years.  We are very pleased with the financial results released today, our first as a public company, and believe that they are proof of the exceptional human capital at ZIM.  Moreover, these capabilities will continue to drive ZIM’s future growth and success.” 

Eli Glickman, ZIM President & CEO, stated, “Our all-time record results in 2020 and the significant milestones we have achieved year-to-date-2021 represent a truly momentous time for ZIM. During a global pandemic, we generated our highest net income in the company’s 75-year history, underscoring the benefits of our differentiated strategy and our proactive approach to address COVID-19. We also ended the year strong, as we achieved EBIT and EBITDA at the high end of our guidance range and continued to achieve industry leading margins. We are committed to our goal of consistently performing as one of the top three carriers in terms of EBIT margin.”

Mr. Glickman added, “We commenced 2021 by becoming the first global container liner to list on the NYSE, highlighting our success creating a leading asset-light shipping liner at the forefront of digitization. Following our IPO, we also announced a strategic long-term chartering agreement for ten 15,000 TEU LNG dual-fuel container vessels, positioning ZIM to meet the growing market demand on the Asia – US East Coast trade and advance our leadership in addressing environmental and sustainability issues.”

Mr. Glickman concluded, “Today, ZIM is a revitalized company with new strengths, an invigorated spirit and a promising outlook for operating amid the new realities of shipping. Combined with our dedicated team of professionals and commitment to utilizing big data and technology, we remain well positioned to enhance our customer experiences, capitalize on favorable industry fundamentals, and maximize long-term profitability. In 2021, as per the guidance we provide, we expect to continue our positive trajectory, achieving significant Adjusted EBITDA and Adjusted EBIT growth and maintaining industry leading margins. We also intend to further harness our “Startup Nation” DNA based on innovation and technological collaborations to continue to develop growth engines that provide us additional revenue streams beyond our traditional shipping business.” 

[1] Earnings per share calculation for all periods reflect a share split of 1:10 that became effective in 2021.

[2] See disclosure regarding “Use of Non-IFRS Financial Measures” below.

[3] Net leverage ratio is defined as face value of short- and long-term debt less cash, cash equivalents and short-term deposits divided by Adjusted EBITDA of the last twelve-month period.



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