Zim Integrated Shipping Services saw record volumes in the third quarter that contributed to revenue of $2.77 billion, up from $1.3 billion a year ago, and net income of $1.3 billion, from a loss of $2.2 billion.
Adjusted pretax earnings came in at $1.53 billion for the quarter ended Sept. 30 from $214 million year over year, and adjusted operating profit totaled $1.24 billion, from $2.3 billion. Adjusted pretax and adjusted operating margins were 55% and 45%, respectively.
Volume grew 12% y/y to 970,000 twenty-foot equivalent units.
The Israel-based carrier increased full-year 2024 guidance of adjusted pretax earnings of $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, comprising a regular dividend of $2.81 per share plus a special dividend of 84 cents per share.
Eli Glickman, Zim president and chief executive, in an earnings release credited the strong results to investment in new, larger vessels and a decision made earlier in the year to leverage earnings against spot volumes in the trans-Pacific trade.
Ocean carriers profits have also benefited from diversions and longer voyages due to port labor disputes, congestion, and disruption of shipping through the Suez Canal and Red Sea.
“We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels,” Glickman said. Entering 2025, we will be operating a fleet that is both well-equipped to meet emissions reduction targets and well-suited to the trades in which we operate. Supported by our declining unit costs, we believe ZIM is well-positioned to deliver profitable growth over the long term.”
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