ZIM Integrated Shipping Services Ltd has released its financial results for the first quarter of 2023, posting revenues of $1.4 billion.
The company reported a net loss of $58 million, compared to a net income of $1.7 billion in the same period last year.
This translated to a diluted loss per share of $0.50, a significant decline from diluted earnings per share of $14.19 in the first quarter of 2022 according to ZIM.
Adjusted EBITDA for the quarter was $373 million, marking an 85 per cent year-over-year decrease.
READ: ZIM profits $4.6 billion for the year
The decline in financial performance was primarily attributed to a decrease in revenues, which amounted to $1.3 billion, down 63 per cent compared to the first quarter of 2022.
Carried volume also experienced a year-over-year decrease of 10 per cent, with 769,000 TEU transported during the first quarter.
Additionally, the average freight rate per TEU declined by 64 per cent to $1,390.
Eli Glickman, ZIM’s President and CEO, acknowledged the challenging market conditions and weak demand, particularly in the Transpacific trade, which had a significant impact on the company’s financial results.
Glickman expressed confidence in ZIM’s ability to overcome these challenges. The company has taken proactive steps, such as adjusting its vessel sourcing strategy to enhance cost efficiency and improve its fleet profile.
READ: ZIM introduces two new 15,000 TEU LNG-powered vessels
Despite the current headwinds, ZIM anticipates positive EBIT in 2023, expecting a recovery in demand and improvement in freight rates in the second half of the year.
The company has reaffirmed its earlier guidance for 2023, projecting Adjusted EBITDA between $1.8 billion and $2.2 billion, and Adjusted EBIT between $100 million and $500 million.
Earlier this month, ZIM, along with other investors, announced the initial closing of an $8 million financing round in vehicle monitoring platform, Spinframe.
ZIM led this investment as part of its strategy to invest in early-stage companies involved in the digitalisation of supply chains.
