Zim has generated the highest net income in its 75-year history during the last year despite the outbreak of the pandemic, according to Eli Glickman, the company’s president and CEO, who stated that the all-time records and the milestones that Zim reached in 2020 represent a “truly momentous time” for the carrier.
In particular, Zim’s full year net income of was US$524 million in 2020, compared to a loss of US$13 million in 2019, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year was US$1.04 billion, representing a year-over-year boost of 168%.
Additionally, the Israeli line marked total revenues of US$3.99 billion for the full year 2020, which translates to a 21% year-on-year growth, which has been mainly “driven by an increase in revenues from containerised cargo, reflecting mainly an increase in freight rates,” said Zim in its announcement.
At the same time, the company has also achieved a modest increase of 1% in its container volumes, carrying 2.84 million TEU in 2020 with an increased average freight rate per TEU of US$1,229.
Summary of Key Financial and Operational Results
“Zim’s Initial public offering (IPO) earlier this year marks the successful turnaround the company has undergone over the past few years. We are very pleased with the financial results released, our first as a public company,” commented Yair Seroussi, chairman of the company’s board of directors.
Furthermore, Glickman highlighted the fact that Zim became the first global container line to list on the New York Stock Exchange (NYSE), as well as the company’s digitalisation progress. “We also announced a strategic long-term chartering agreement for ten 15,000TEU 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,” he added.
Zim expects to generate adjusted EBITDA in 2021 of between US$1.4 billion and $1.6 billion and adjusted EBIT of between US$850 million to US$1.05 billion. “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,” stated Glickman.
“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,” he concluded.