Boosted by the boom in global shipping, Zim Integrated Shipping Services Ltd. (NYSE: ZIM) today reported the largest ever annual net profit achieved by an Israeli company and will pay out the biggest ever dividend.
Zim’s net profit in the fourth quarter of 2021 was $ 1.71 billion, up 366% from the corresponding quarter of 2020. Net profit in 2021 was $ 4.65 billion compared to $ 524 million in 2020.
Zim’s revenue for the fourth quarter of 2021 was $ 3.47 billion, a year-over-year rise of 155%, while revenue for the full year 2021 was $ 10.73 billion, up 169% from 2020.
Zim has declared a dividend of $ 2.04 billion, or $ 17.00 per share dividend, representing 50% of 2021 net income on a cumulative basis.
Zim president and CEO Eli Glickman said, “In our first year as the only global container liner listed on the New York Stock Exchange, Zim has achieved historically extraordinary results and executed on commitments made during our IPO process. Zim’s agility and proactive strategies enabled us to unlock significant shareholder value during a time of unique and unprecedented challenges.With another quarter of exceptional financial performance, we generated our highest ever full year of revenues, adjusted EBITDA, net profit and operating cash flows, while once again delivering industry-leading margins. We also ended the year with a net positive cash position and strong financial flexibility. “
He added, “We made sizable investments in equipment to facilitate the movement of cargoes for customers, as well as meaningfully expanded our operating fleet capacity and launched 17 new lines since June 2020, resulting in Zim’s year-over-year carried volume tripling the global volume growth rate. We also returned substantial capital to shareholders, highlighted by a full year dividend of $ 19.50 per share, reflective of 50% of our 2021 net income. In total, including our special dividend paid in September 2021, we will return to shareholders approximately $ 2.6 billion or $ 21.50 per share since our IPO, which represents approximately 30% of our current market cap and, incredibly, approximately 50% higher than our IPO market cap. “We are seizing the opportunity to be at the forefront of carbon intensity reduction among global liners, with 28 eco-friendly LNG dual-fuel container vessels due to be delivered to us between 2023 and 2024, which could account for 40% of our operated capacity. Our strategy to predominantly charter in vessels provides us with a unique advantage, as we can easily transition our operating capacity without a legacy fleet to replace. “
Zim pays NIS 1.6b tax to boost Israel’s coffers
Zim charters 13 container vessels
Zim charters 3 LNG container vessels
Zim line switches to new Haifa Bayport
Zim held its IPO on the NYSE in January 2021 at a company valuation of $ 1.75 billion. The company’s share price opened 6.10% higher today at $ 75, giving a market cap of $ 8.9 billion – five-times its valuation at the IPO.
Published by Globes, Israel business news – en.globes.co.il – on March 9, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.