ZIM Stock Tumbles After Q1 Earnings and Dividend Halt: The Details

• ZIM Integrated Shipping Services Ltd (NYSE: ZIM) reported a Q1 2023 sales decline of 63% Y/Y to $1.37 billion, missing the consensus of $1.57 billion.

• Carried volume in Q1 was 769 thousand TEUs, a decrease of 10% Y/Y. The average freight rate per TEU in Q1 was $1,390 (-64% Y/Y).

• The company generated an EPS loss of $(0.50), down from $14.19 a year ago.

• Adjusted EBITDA fell 85% Y/Y to $373 million, with margins of 27% vs 68% a year ago.

• ZIM's total cash position stood at $4.25 billion as of March 31, 2023.

• Operating cash flow was $174 million in Q1, compared to $1.7 billion a year ago.

• Capital expenditures came in at $36 million in Q1 2023 vs $183 million in Q1 2022.

• ZIM didn't pay dividends in Q1, as it generated a net loss of $58 million.

• FY23 Outlook Reaffirmed: ZIM reiterated adjusted EBITDA of $1.8 billion - $2.2 billion and adjusted EBIT of $100 million - $500 million.

• "With a focus on enhancing our commercial and operational resilience, we adapted our vessel sourcing strategy to improve our cost structure with the addition of fuel-efficient newbuild tonnage that will overhaul our fleet profile, as well as advance our ESG goals. These include ten 15,000 TEU dual-fuel LNG vessels, which are ideally suited for our core Asia to US East Coast service, and 36 smaller, more versatile vessels, 18 of which are also dual-fuel LNG, that will enable ZIM to operate a fleet best suited for our trades and services." stated Eli Glickman, President & CEO.

• Price Action: ZIM shares are trading lower by 13.9% at $15.08 on the last check Monday.

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