ZIM Integrated Shipping Services Stock Surges After Solid Q4 Results

ZIM Integrated Shipping Services Ltd ZIM reported fourth-quarter revenues of $3.47 billion compared to $1.36 billion in 4Q20, beating the consensus of $3.34 billion.
The increase was driven by higher revenues from containerized cargo, reflecting an increase in freight rates and carried volume.
EPS improved to $14.17, from $3.49 in 4Q20, beating the consensus of $13.20.
For Q4, ZIM carried 858 thousand TEUs, an increase of 7% Y/Y. The average freight rate per TEU was $3,630, increasing 139% Y/Y.
The company declared a $17 per share dividend, representing 50% of 2021 net income on a cumulative basis. The dividend will be paid on April 4, 2022, to holders of ZIM ordinary shares as of March 23, 2022.
ZIM generated net cash from operating activities for $5.97 billion in FY21, compared to $881 million in FY20.
ZIM's total cash position stood at $3.81 billion as of December 31, 2021. As of December 31, 2021, the net leverage ratio was 0.0x, compared to 1.2x as of December 31, 2020.
The gross margin was 63.3% versus 35.1% in 4Q20. The Operating income increased to $2.12 billion from $439.5 million a year ago.
The operating margin expanded to 61.1% compared to 32.2% in 4Q20.
Adjusted EBITDA increased to $2.36 billion, from $531 million in 4Q20, and margin expanded to 68.2% from 39% a year ago.
In February 2022, the company announced the formal extension and modification of its operational collaboration agreement with the 2M alliance partners.
FY22 Outlook: The company expects Adjusted EBITDA of $7.1 billion - $7.5 billion and Adjusted EBIT of $5.6 billion - $6.0 billion.
Price Action: ZIM shares are trading higher by 8.64% at $76.80 during the pre-market session on Wednesday.

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