Company Now Expects to Generate in 2023 Adjusted EBITDA of
$1.2-$1.6
Billion and Adjusted EBIT Loss of $500-$100
Million1
HAIFA,
Israel, July 12, 2023 /PRNewswire/ -- ZIM
Integrated Shipping Services Ltd. (NYSE: ZIM), a global
container liner shipping company, updated its guidance for the full
year of 2023. The company now expects to generate Adjusted EBITDA
of $1.2 billion to $1.6 billion and Adjusted EBIT loss of
$500 million to $100 million, compared to its prior guidance of
Adjusted EBITDA of between $1.8
billion and $2.2 billion and
Adjusted positive EBIT of between $100 to $500
million.
ZIM's updated full-year 2023 guidance is driven primarily by
continued weakness in freight rates across all the company's
trades, particularly in the Transpacific, which is now expected to
continue during the second half of 2023. Volume growth is also
expected to be lower than originally forecasted, as demand
continues to be subdued.
Eli Glickman, ZIM President
& CEO, said "Near-term container shipping market conditions
continue to be challenging, with demand expected to remain muted
for the remainder of the year. While our second quarter results are
broadly in-line with our expectations, we no longer anticipate an
improvement in freight rates in the second half of 2023, consistent
with seasonality, as previously assumed."
Mr. Glickman continued, "During this downturn, we will continue
to actively manage and rationalize our fleet and services, to
maximize our cash position, while remaining true to our
customer-centric approach, a hallmark of ZIM's success. We expect
our strong balance sheet and ample cash to continue serving ZIM
well and allow us to maintain a long-term view. As we look to the
future, we believe that our cost-effective and
fuel-efficient newbuild capacity, particularly our
newbuild LNG vessels, will markedly improve our cost
structure and competitive position, allowing us to deliver
sustainable value for both customers and shareholders over the long
term."
ZIM plans to report second quarter 2023 results and hold a
conference call to discuss quarterly results and provide a
corporate update on Wednesday, August 16,
2023.
About ZIM
Founded in Israel in 1945, ZIM (NYSE: ZIM) is a leading
global container liner shipping company with established operations
in more than 90 countries serving approximately 34,000 customers in
over 300 ports worldwide. ZIM leverages digital strategies and a
commitment to ESG values to provide customers innovative seaborne
transportation and logistics services and exceptional customer
experience. ZIM's differentiated global-niche strategy, based on
agile fleet management and deployment, covers major trade routes
with a focus on select markets where the company holds competitive
advantages. Additional information about ZIM is available at
www.ZIM.com.
Use of Non-IFRS Measures in the Company's 2023
Guidance
A reconciliation of the Company's non-IFRS
financial measures included in its full-year 2023 guidance to
corresponding IFRS measures is not available on a forward-looking
basis. In particular, the Company has not reconciled its Adjusted
EBITDA and Adjusted EBIT because the various reconciling items
between such non-IFRS financial measures and the corresponding IFRS
measures cannot be determined without unreasonable effort due to
the uncertainty regarding, and the potential variability of, the
future costs and expenses for which the Company adjusts, the effect
of which may be significant, and all of which are difficult to
predict and are subject to frequent change.
Forward-Looking Statements
The following
information contains, or may be deemed to contain forward-looking
statements (as defined in the U.S. Private Securities Litigation
Reform Act of 1995). In some cases, you can identify these
statements by forward-looking words such as "may," "might," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," the negative of these terms
and other comparable terminology. These forward-looking statements,
which are subject to risks, uncertainties and assumptions about the
Company, may include projections of the Company's future financial
results, its anticipated growth strategies and anticipated trends
in its business. These statements are only predictions based on the
Company's current expectations and projections about future events
or results. There are important factors that could cause the
Company's actual results, level of activity, performance or
achievements to differ materially from the results, level of
activity, performance or achievements expressed or implied by the
forward-looking statements. Factors that could cause such
differences include, but are not limited to: market changes in
freight, bunker, charter and other rates or prices, supply-demand
fluctuations in the containerized shipping market, new legislation
or regulation affecting the Company's operations, new competition
and changes in the competitive environment, the outcome of legal
proceedings to which the Company is a party, global, regional
and/or local political instability, inflation rate fluctuations,
capital markets fluctuations and other risks and uncertainties
detailed from time to time in the Company's filings with the U.S.
Securities and Exchange Commission (SEC), including under the
caption "Risk Factors" in its 2022 Annual Report filed with the SEC
on March 13, 2023.
Although the Company believes the expectations reflected in the
forward-looking statements contained herein are reasonable, it
cannot guarantee future results, level of activity, performance or
achievements. Moreover, neither the Company nor any other person
assumes responsibility for the accuracy and completeness of any of
these forward-looking statements. The Company assumes no duty to
update any of these forward-looking statements after the date
hereof to conform its prior statements to actual results or revised
expectations, except as otherwise required by law.
The Company prepares its financial statements in accordance with
International Financial Reporting Standards (IFRS), as issued by
the International Accounting Standards Board (IASB).
Use of Non-IFRS Financial Measures
The Company
presents non-IFRS measures as additional performance measures as
the Company believes that it enables the comparison of operating
performance between periods on a consistent basis. These measures
should not be considered in isolation, or as a substitute for
operating income, any other performance measures, or cash flow
data, which were prepared in accordance with Generally Accepted
Accounting Principles as measures of profitability or liquidity.
Please note that Adjusted EBITDA does not take into account debt
service requirements, or other commitments, including capital
expenditures, and therefore, does not necessarily indicate the
amounts that may be available for the Company's use. In addition,
the non-IFRS financial measures presented by the Company, may not
be comparable to similarly titled measures reported by other
companies, due to differences in the way these measures are
calculated.
Adjusted EBITDA is a non-IFRS financial measure
which we define as net income (loss) adjusted to exclude financial
expenses (income), net, income taxes, depreciation and amortization
in order to reach EBITDA, and further adjusted to exclude
impairment of assets, non-cash charter hire expenses, capital gains
(losses) beyond the ordinary course of business and expenses
related to legal contingencies.
Adjusted EBIT is a non-IFRS financial measure which
we define as net income (loss) adjusted to exclude financial
expenses (income), net and income taxes, in order to reach our
results from operating activities, or EBIT, and further adjusted to
exclude impairment of assets, non-cash charter hire expenses,
capital gains (losses) beyond the ordinary course of business and
expenses related to legal contingencies.
Investor Relations:
Elana
Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com
Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com
Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
shats.avner@zim.com
1 The Company does not provide IFRS guidance because
it is not readily available. See disclosure regarding "Use of
Non-IFRS Measures in the Company's 2023 Guidance."
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SOURCE ZIM Integrated Shipping Services Ltd.