ZIM Integrated Shipping Services (ZIM) Stock: Over 3% Increase Pre-Market Explanation

By Amit Chowdhry ● May 19, 2021
  • The stock price of ZIM Integrated Shipping Services (NYSE: ZIM) increased by over 3% pre-market. This is why it happened.

The stock price of ZIM Integrated Shipping Services (NYSE: ZIM) increased by over 3% pre-market. Investors are responding positively to the company’s first quarter 2021 results.

These are the highlights:
— Net income for the first quarter was $589.6 million (compared to a loss of $11.9 million in the first quarter of 2020), or $5.35 per share

— Adjusted EBITDA for the first quarter was $820.5 million, a year-over-year increase of 744%

— Operating income (EBIT) for the first quarter was $683.5 million, a year-over-year increase of 2,645%

— Revenues for the first quarter were $1.74 billion, a year-over-year increase of 112%

— Declared a special cash dividend of approximately $238 million, or $2.00 per ordinary share, to be paid on September 15, 2021, to holders of the ordinary shares as of August 25, 2021; reiterated plan to distribute an annual dividend of 30-50% of 2021 net income in 2022

“This is truly a momentous time in ZIM’s 75-year history. Following our successful IPO to become the first global container liner to list in the U.S., we are proud of our demonstrated accomplishments based on seamless execution aligned with our stated objectives. Driven by ZIM’s differentiated approach and proactive strategies, we generated our highest ever quarterly net profit, EBITDA, and cash flow, while continuing to deliver industry-leading margins,” said Eli Glickman, ZIM President & CEO. “We also significantly strengthened our balance sheet, with shareholder equity now in excess of $1 billion. In a short time since going public, we have also achieved important milestones for shareholders. Specifically, we significantly strengthened our position in the growing and strategic Pacific and Intra Asia trades, with our long-term chartering agreement for large LNG dual-fuel container vessels and the launch of new services to address unmet need in profitable routes to generate superior growth. We also drew on our strong cash flow to redeem ZIM’s $349 million outstanding Series 1 and 2 Notes sooner than expected and earlier than the stated maturity by two years.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.