ZIM Integrated Shipping Services Posts Loss In Q2, Stock Down In Pre-market

(RTTNews) - ZIM Integrated Shipping Services Ltd. (ZIM), a container liner shipping company, Wednesday reported net loss of $215.1 million or $1.79 per share for the second quarter, compared with a profit of $1.333 billion or $11.07 per share in the same quarter a year ago, hurt by decline in revenue primarily due to decrease in freight rates.

Analysts on average, polled by Thomson-Reuters were expecting a loss of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted earnings before interest, taxes, depreciation, and amortization or EBITDA for the quarter was $275 million compared with $2.101 billion in the previous year. Revenue for the quarter declined 62% year on year to $1.310 billion from $3.43 billion. The consensus estimate was for $1.35 billion.

ZIM carried 860 thousand TEUs in the second quarter of 2023, compared to 856 thousand TEUs last year. The average freight rate per TEU was $1,193 for the second quarter of 2023, compared to $3,596 a year ago.

Looking forward, the company sees adjusted EBITDA for the full year to be in the range of $1.2 billion - $1.6 billion.

ZIM shares are down more than 5% in pre-market trading. It closed at $13.44, down 3.45% on Tuesday. The stock has been trading in the range of $11.78 - $51.93 in the last 52 weeks.