ZIM Integrated Shipping Services Ltd. (ZIM) released its financial results for the fourth quarter and full year 2021.
In the fourth quarter of 2021, the company’s revenues totaled $3.47 billion, compared to $1.36 billion in the fourth quarter of 2020. This success was mainly due to an increase in volumes and freight rates.
EBIT for the last three months of last year was $2.12 billion, up significantly from $439 million for the same period in 2020. Operating margin for the quarter was 61 %, compared to 32% in the fourth quarter of 2020.
Net income for the quarter was $1.71 billion, compared to $366 million in the fourth quarter of 2020. This included a tax charge of $374 million.
Adjusted EBITDA was $2.36 billion, compared to $531 million for the fourth quarter of 2020. Adjusted EBIT was $2.11 billion, compared to $440 million for the fourth quarter of 2020 .
Adjusted EBITDA and Adjusted EBIT margins for the quarter were 68% and 61% respectively.
Net cash provided by operating activities was $2 billion in the last quarter of 2021, compared to $414 million in the fourth quarter of 2020.
ZIM also carried a total of 858,0000 TEUs during this quarter, compared to 799,000 TEUs in the same period the previous year.
Total revenue was $10.73 billion for the full year of 2021, compared to $3.99 billion in 2020.
EBIT for the year would have been $5.82 billion, compared to $722 million in 2020. Full-year operating margin was 54%, compared to 18% the previous year.
Net income for the full year was $4.65 billion, up significantly from $524 million in 2020. This also included a tax charge of $1.01 billion.
ZIM’s Adjusted EBITDA was $6.60 billion in 2021, compared to $1.04 billion in 2020. Adjusted EBIT was $5.82 billion, compared to $729 million in 2020 .
Adjusted EBITDA and Adjusted EBIT margins were 61% and 54% respectively in 2021.
Net cash provided by operating activities was $5.97 billion, compared to $881 million in 2020.
Finally, ZIM transported 3,481,000 TEU in 2021, a strong increase from the 2,841,000 TEU the previous year.
For next year, the company expects to generate Adjusted EBITDA between $7.1 billion and $7.5 billion and Adjusted EBIT between $5.6 billion and $6 billion.
Some of ZIM’s operational highlights from 2021 include:
“In our first year as the only global ocean liner listed on the New York Stock Exchange, ZIM has achieved historically extraordinary results and executed on the commitments made during our IPO process,” said Eli Glickman, President and CEO of ZIM.
“ZIM’s agility and proactive strategies have enabled us to unlock significant shareholder value in a time of unique and unprecedented challenges.
“With another quarter of exceptional financial performance, we delivered our full year of the highest revenue, adjusted EBITDA, net income and operating cash flow in our history, while once again achieving margins among the best in the industry. We also ended the year with positive net cash and strong financial flexibility.
“Given our exceptional cash generation in 2021, we have decisively allocated capital to support our customers as we strive to provide best-in-class service.
“Most importantly, we have made considerable investments in equipment to facilitate the movement of cargo for customers, as well as significantly increased the capacity of our operating fleet and launched 17 new lines since June 2020, which has enabled the volume transported from ZIM year-over-year to triple global volume. Rate of growth.
“Today, ZIM is commercially and operationally stronger than ever, which makes us more optimistic than ever about our future. We are excited to continue the exceptional momentum of 2021 into 2022, and well beyond.”
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