ZIM Q32023 net loss at $2.3bn, revenue drops 60%
Revenue declined 60% to $1.3 billion, driven by 66% decrease in freight rates & partially offset by increase in volumes
Israeli carrier ZIM reported a net loss of $2.3 billion for the third quarter ended September 30, 2023 compared to a profit of $1.2 billion in Q32022.
Net revenue declined 60 percent to $1.3 billion compared to $3.2 billion in the third quarter of 2022, "driven by decrease in freight rates partially offset by a slight increase in carried volumes," says an official release.
ZIM carried 867,000 TEUs in the third quarter of 2023 compared to 842,000 TEUs in the third quarter of 2022, a marginal increase of two percent. The average freight rate per TEU was $1,139 for the third quarter of 2023 compared to $3,353 for the third quarter of 2022, a decline of 66 percent.
"ZIM's third quarter results reflected the current operating environment as demand remained weak and freight rates continued to deteriorate," says Eli Glickman, President & CEO, ZIM. "Given our negative outlook for freight rates in the near future, we recorded a non-cash impairment loss of approximately $2.1 billion, which negatively impacted our net results as well as revised our full year guidance. We now expect to generate adjusted EBITDA of $900-1,100 million and adjusted EBIT loss of $600-400 million in 2023.
"We believe our ample total liquidity of approximately $3.1 billion at quarter-end will enable ZIM to maintain a long-term view while we weather prolonged market weakness. Specifically, we have initiated significant cost control measures, rationalised our capacity and adapted our network with a focus on both maximising our cash position and delivering an exceptional customer experience. Additionally, we entered into an important new collaboration with MSC during the third quarter that enhances operational efficiencies and further elevates service levels."
Nine months loss at $2.5bn
For the first nine months of 2023, ZIM reported revenue of $3.9 billion compared to $10.4 billion during the same period last year. Net loss came in at $2.5 billion as against a profit of $4.2 billion in 2022.
"ZIM carried 2,496,000 TEUs in the first nine months of 2023 compared to 2,557,000 TEUs in the first nine months of 2022. The average freight rate per TEU was $1,235 compared to $3,600 for the first nine months of 2022."