Zim shipping and maritime transport company concluded 2023 with a loss of $2.69 billion

Zim, which in 2022 presented the highest net profit in history for an Israeli company, sadly closes 2023, while showing a loss in each of the quarters of the past year. Zim shares lose about 14% in New York trading.
The shipping and maritime transport company concluded 2023 with a loss of $2.69 billion, while it concluded 2022 with a profit of $4.63 billion - slightly lower than the net profit of 2021, which was $4.65 billion and was the highest in the history of any Israeli company.
Most of the loss, about 2 billion dollars, is attributed to the decrease in value registered in the third quarter.
In the fourth quarter of 2023, Zim's revenues decreased by 45% compared to the corresponding period in 2022 and amounted to $1.2 billion, a decrease of 45% compared to the corresponding period in 2022. For the entire year, revenues fell by 59% and amounted to 5.1 billion dollars.
The sharp drop in revenue is the result of both a decrease in the amount of containers transported by Zim and a collapse in transportation prices. In the fourth quarter Zim transported 786 thousand containers (TEU) and in the whole year 3.3 million containers, a decrease of 4.5% and 2.9% respectively.
Most of the loss, about 2 billion dollars, is attributed to the decrease in value registered in the third quarter.
In the fourth quarter of 2023, Zim's revenues decreased by 45% compared to the corresponding period in 2022 and amounted to $1.2 billion, a decrease of 45% compared to the corresponding period in 2022. For the entire year, revenues fell by 59% and amounted to 5.1 billion dollars.
The sharp drop in revenue is the result of both a decrease in the amount of containers transported by Zim and a collapse in transportation prices. In the fourth quarter Zim transported 786 thousand containers (TEU) and in the whole year 3.3 million containers, a decrease of 4.5% and 2.9% respectively.
Zim closed the fourth quarter with a loss of $147 million, while the fourth quarter of 2022 ended with a net profit of $147 million.
Zim moved to an adjusted operating loss, both in the fourth quarter and in the summary of the year, and the line of operating profit-flows (EBITDA) presented a collapse of 80% in the quarter and 86% in the entire year.
Zim's results were in line with the forecasts it provided when it released its third quarter reports - lower forecasts than its early estimates. However, the results slightly missed analysts' forecasts.
Including the decline in the first hours of trading in New York today, Zim is trading at a market value of $1.24 billion - less than the value at which it was issued on the New York Stock Exchange in January 2021, when it raised $217 million at a value of $1.5 billion. Two months after the offering, it reached a record value of 10.6 billion dollars, which now seems extremely far away.
To a certain extent, Israel's war against Hamas actually provides a financial windfall to the Tsim. The Houthis in Yemen, who are attacking ships at Bab al-Mandab, a transit point for ships between the Suez Canal and the Straits of Hormuz, are disrupting maritime transport in the world, thereby causing prices to rise.
As part of the reports, Zim provided a forecast for 2024, according to which the adjusted EBITDA will be between $850 million and $1.45 billion, an increase of up to 50% compared to the 2023 figure, and the operating profit (EBIT) will vary between $300 million and a loss of $300 million. A better figure than the result of 2023 - a loss of 422 million dollars.
As far as ZIM's interface with Israel is concerned, Glickman said that "ZIM is the only company that managed to visit Israel's beaches and ports from the first day the war broke out, while most companies stopped providing services here. If the threats to Haifa Port increase, we will know how to manage with the alternatives."
In the past, it was argued against Zim that it does continue to frequent the shores of Israel, but it is passing on the insurance costs that are telling on consumers and customers. According to Glickman. "It's a spicy topic. Last November, the chairman of the manufacturers' association tried to create a negative agenda against Zim and claimed that we are not absorbing the excess costs. He claimed this because the competitors announced that for a short time they would absorb these costs, but at the same time they jumped the prices by thousands of dollars per container, from $2,000 to $6,000, and this while the insurance became more expensive by only $100, which is what we passed on to the consumers . So which is more expensive? Someone tried to run a campaign on our backs because at the same time our market share in Israel grew by tens of percent."