Zim Integrated Shipping Services posted record volumes in the third quarter that contributed to revenues of $2.77 billion, up from $1.3 billion a year ago, and net profit of $1.3 billion, after a loss of $2.2 billion.
Adjusted pre-tax profit for the quarter ended September 30 was $1.53 billion, up from $214 million annually, and adjusted operating profit was $1.24 billion, from $2.3 billion. Adjusted profit before tax and adjusted operating margins were 55% and 45%, respectively.
Volume grew 12% year over year to 970,000 twenty-foot equivalent units.
The Israel-based airline raised full-year 2024 expectations for adjusted pretax profit from $3.3 billion to $3.6 billion and adjusted operating profit from $2.15 billion to $2.45 billion.
The company also declared a dividend of $3.65 per share, consisting of a regular dividend of $2.81 per share plus a special dividend of 84 cents per share.
Eli Glickman, president and CEO of Zim, in an earnings release attributed the strong results to investments in new, larger ships and a decision earlier this year to leverage the gains at spot volumes in the trans-Pacific trade.
Maritime carriers’ profits have also benefited from diversions and longer journeys due to labor disputes at ports, congestion and disruption to shipping through the Suez Canal and the Red Sea.
“We are ending the year with the final delivery of the remaining four of the 46 newbuild container ships we have secured, including 28 LNG-powered ships,” Glickman said. From 2025, we will have a fleet that is well equipped to meet emissions reduction targets and well suited to the sectors in which we operate. Supported by our declining unit costs, we believe ZIM is well positioned to deliver profitable growth over the long term.”
Find more articles by Stuart Chirls here.
Related coverage:
Short Line’s CEO says railroads must embrace Uber-like technology to secure the future
Port of Virginia gets new cranes and chassis pool upgrade
Unions are returning to work in Canada’s ports
The post Zim Q3 powered by spot market, new ships appeared first on FreightWaves.
