Generates highest ever quarterly net income of $888 million and
adjusted EBITDA of $1.34 billion

ZIM Integrated Shipping Services Ltd., a global container liner shipping company, announced today its consolidated results for the three and six months ended June 30, 2021.

Second Quarter 2021 Highlights

  • Net income for the second quarter was $888 million (compared to $25 million in the second quarter of 2020), or $7.38 per diluted share
  • Adjusted EBITDA for the second quarter was $1.34 billion, compared to $145 million in the second quarter of 2020, a year-over-year increase of 820%
  • Operating income (EBIT) for the second quarter was $1.16 billion, compared to $69 million in the second quarter of 2020, a year-over-year increase of 1,581%
  • Adjusted EBIT for the second quarter was $1.16 billion, compared to $73 million in the second quarter of 2020, a year-over-year increase of 1,495%
  • Revenues for the second quarter were $2.38 billion, compared to $795 million in the second quarter of 2020, a year-over-year increase of 200%
  • ZIM carried 921 thousand TEUs in the second quarter of 2021, a year-over-year increase of 44%
  • The average freight rate per TEU in the second quarter of 2021 was $2,341, a year-over-year increase of 119%
  • Net leverage ratio of 0.3x at June 30, 2021, compared to 1.2x at December 31, 2020
  • Completed secondary offering, which consisted of approximately 8 million shares at a price per share of $40.00
  • Redeemed in full $349 million principal amount of Series 1 and 2 Notes due 2023
  • Declared a special cash dividend of approximately $238 million, or $2.00 per ordinary share, to be paid on September 15, 2021, to holders of the ordinary shares as of August 25, 2021; reiterated plan to distribute annual dividend of 30-50% of 2021 net income in 2022 (subject to Board approval)
  • Subsequent to quarter end, announced a new strategic long-term chartering agreement with Seaspan for ten 7,000 TEU “green” LNG-fueled vessels (with an option for the long-term charter of five additional such vessels), further demonstrating ZIM’s commitment to reducing its carbon footprint

Eli Glickman, ZIM President & CEO, stated, “I’m very proud to say that our outstanding performance and all-time record results, which have positioned us to create significant shareholder value, are a testament to the proactive strategies we have implemented to capitalize on both the highly attractive market and ZIM’s differentiated approach. We continue to execute at the highest level, resulting in another record quarter, including net income, EBITDA and operating cash flow, as well as significantly improved guidance for 2021. Driving our success, we have further leveraged digitalization initiatives and have drawn on our global-niche strategy to launch new lines to address profitable, underserved routes. This was instrumental in driving our all-time high results, as ZIM’s second quarter carried volume increased by 44% year-over-year, substantially higher than market growth.”

Mr. Glickman added, “Consistent with our commitment to unlock significant value, we continue to prudently allocate capital for future growth, debt repayment and return of capital to shareholders. Specifically, our investment in new containers and two strategic agreements for the long-term charter of LNG dual-fuel container vessels support our objective to provide the best and most reliable service to customers and to promote our ESG values. In addition, our strong performance and robust cash generation have allowed us to further pay down debt, resulting in a leverage ratio of 0.3x, the lowest in ZIM’s history, and boost shareholders’ equity to $1.72 billion.”

Mr. Glickman concluded, “Looking ahead, based on our strong outlook and forward visibility, we are well positioned to return substantial capital to shareholders, with our expected 2022 dividend payout of 30%-50% of 2021 net income, on top of the $238 million, or $2.00 per share, special dividend payable in September 2021. Our outlook for the remainder of 2021 and into 2022 is very positive and we are excited about our strategy to further enhance our position as an innovative digital leader of seaborne transportation and logistics services.”

Q2’21 Q2’20 1H’21 1H’20
Carried volume (K-TEUs) 921 641 1,739 1,280
Average freight rate ($/TEU) 2,341 1,071 2,145 1,081
Revenue ($ in millions) 2,382 795 4,126 1,618
Operating income (EBIT) ($ in millions) 1,158 69 1,841 94
Profit before income tax ($ in millions) 1,112 30 1,756 21
Net income ($ in millions) 888 25 1,478 13
Adjusted EBITDA )$ in millions) 1,335 145 2,156 242
Adjusted EBIT ($ in millions) 1,159 73 1,847 100
Adjusted EBITDA margin (%) 56 18 52 15
Adjusted EBIT margin (%) 49 9 45 6
Net cash generated from operating activities ($ in millions)
1,181 1,181

120 120

1,958 1,958

221
Earnings per share (fully diluted) ($) 7.38 0.23 12.56 0.10
Free cash flow ($ in millions) 867 115 1,510 214
Q2’21 Q4’20
Net debt ($ in millions)

783

1,236