LIKE most of its contemporaries in international container shipping Israeli carrier Zim Integrated Shipping Services has turned in dismal results for 4Q 2023 and the full calendar year.
However, president & CEO Eli Glickman remains resolute the carrier is on the right track.
In figures released overnight in Haifa Zim revealed a net loss for the fourth quarter of US$147 million (compared to a net profit of $417 million in the fourth quarter of 2022), and a net loss for the full year, including a $2.06 billion non-cash impairment loss, $2.69 billion (compared to a net profit of $4.63 billion for the full year of 2022).
Adjusted EBITDA for the fourth quarter was $190 million, a year-over-year decrease of 80%; adjusted EBITDA for the full year was $1.05 billion, a year-over-year decrease of 86%.
Operating loss (EBIT) for the fourth quarter was $54 million, compared to operating income of $585 million in the fourth quarter of 2022. Operating loss for the full year of 2023 was $2.51 billion (driven by a non-cash impairment loss of $2.06 billion recorded in the third quarter), compared to operating income of $6.14 billion for the full year of 2022.
Adjusted EBIT loss for the fourth quarter was $49 million, compared to Adjusted EBIT of $585 million in the fourth quarter of 2022. Adjusted EBIT loss for the full year of 2023 was $422 million, compared to Adjusted EBIT of $6.15 billion for the full year of 2022.
On the revenue front, 4Q23 saw a 45% decrease to $1.21 billion, year-over-year, while full year revenues fell to $5.16 billion, a year-over-year decrease of 59%.
The extent of the worldwide collapse in rates post covid can be appreciated when it’s seen that volume carried in 4Q23 was 786,000 TEU, a year-over-year decrease of 4.6%; while over the full year Zim carryings dropped only 2.9%, to 3,281,000 TEU. Just as indicatively average freight rate per TEU in the fourth quarter was $1,102, a year-over-year decrease of 48%; average freight rate per TEU in the full year was $1,203, a year-over-year decrease of 63%.
Zim reported net leverage ratioof 2.2x at 31 December 2023, compared to 0.0x a year earlier, and net debt of $2.3 billion, compared to net cash of $279 million as of 31 December 2022.
Mr Glickman said Zim remained resilient and “intently focused on achieving operational excellence and delivering the highest level of care for our valued customers.
“At the same time, we made significant progress advancing our strategic transformation and are pleased to have already started to realise the favourable outcomes we projected. Specifically, we are well on our way to markedly improving our cost structure, enhancing our commercial resilience, and enabling reduced carbon emissions for both Zim and our customers moving forward.”
During a time when the market remains volatile, Zim’s strong cash position would enable it to maintain a long-term: “Looking ahead, we intend to continue to take decisive steps to further benefit from our strategic transformation and expect Zim to emerge in a stronger position than ever in 2025 and beyond,” Mr Glickman said.
Zim’s full-year 2024 outlook is for adjusted EBITDA of $850 million to $1,450 million and adjusted EBIT, a loss of $300 million to earnings of $300 million.
