|
ZIM INTEGRATED SHIPPING SERVICES LTD.
|
||
|
|
|
|
|
By:
|
/s/ Noam Nativ
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|
Noam Nativ
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|
EVP General Counsel and Corporate Secretary
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EXHIBIT NO.
|
DESCRIPTION
|
|
• |
Net loss for the third quarter was $2,270 million (compared to net income of $1,166 million in the third quarter of 2022), or a diluted loss per share of $18.904 (compared to diluted earnings per share of $9.66 in the third
quarter of 2022). Net loss for the quarter was primarily driven by a non-cash impairment loss of $2,063 million
|
• |
Adjusted EBITDA for the third quarter was $211 million, a year-over-year decrease of 89%
|
• |
Operating loss (EBIT) for the third quarter was $2,276 million, compared to operating income of $1,544 million in the third quarter of 2022
|
• |
Adjusted EBIT loss for the third quarter was $213 million, compared to Adjusted EBIT of $1,554 million in the third quarter of 2022
|
• |
Revenues for the third quarter were $1,273 million, a year-over-year decrease of 61%
|
• |
Carried volume in the third quarter was 867 thousand TEUs, a slight year-over-year increase
|
• |
Average freight rate per TEU in the third quarter was $1,139, a year-over-year decrease of 66%
|
• |
Net leverage ratio2 of 0.9x as of September 30, 2023, compared to 0.0x as of December 31, 2022; net debt of $1,619 million, compared to net cash of $279 million as of December 31, 2022
|
Q3.23
|
Q3.22
|
9M.23
|
9M.22
|
|||||||||||||
Carried volume (K-TEUs)
|
867
|
842
|
2,496
|
2,557
|
||||||||||||
Average freight rate ($/TEU)
|
1,139
|
3,353
|
1,235
|
3,600
|
||||||||||||
Total Revenues ($ in millions)
|
1,273
|
3,228
|
3,957
|
10,373
|
||||||||||||
Operating income (loss) (EBIT) ($ in millions)
|
(2,276
|
)
|
1,544
|
(2,457
|
)
|
5,551
|
||||||||||
Profit (loss) before income tax ($ in millions)
|
(2,342
|
)
|
1,514
|
(2,678
|
)
|
5,469
|
||||||||||
Net income (loss) ($ in millions)
|
(2,270
|
)
|
1,166
|
(2,541
|
)
|
4,212
|
||||||||||
Adjusted EBITDA2 ($ in millions)
|
211
|
1,934
|
859
|
6,568
|
||||||||||||
Adjusted EBIT2 ($ in millions)
|
(213
|
)
|
1,554
|
(373
|
)
|
5,561
|
||||||||||
Adjusted EBITDA margin (%)
|
17
|
60
|
22
|
63
|
||||||||||||
Adjusted EBIT margin (%)
|
(17
|
)
|
48
|
(9
|
)
|
54
|
||||||||||
Diluted earnings (loss) per share ($)
|
(18.90
|
)
|
9.66
|
(21.19
|
)
|
34.91
|
||||||||||
Net cash generated from operating activities ($ in millions)
|
338
|
1,672
|
858
|
5,041
|
||||||||||||
Free cash flow2 ($ in millions)
|
328
|
1,626
|
791
|
4,748
|
||||||||||||
SEP.23
|
DEC.22
|
|||||||||||||||
Net debt (Net cash)2 ($ in millions)
|
1,619
|
(279
|
)
|
September 30
|
December 31
|
|||||||||||
2023
|
2022
|
2022
|
||||||||||
Assets
|
||||||||||||
Vessels
|
3,222.9
|
4,640.5
|
4,409.9
|
|||||||||
Containers and handling equipment
|
788.2
|
1,270.8
|
1,242.8
|
|||||||||
Other tangible assets
|
61.1
|
76.9
|
98.5
|
|||||||||
Intangible assets
|
93.3
|
82.5
|
92.9
|
|||||||||
Investments in associates
|
26.8
|
26.0
|
22.0
|
|||||||||
Other investments
|
1,252.6
|
1,314.3
|
1,373.2
|
|||||||||
Other receivables
|
105.5
|
109.5
|
112.1
|
|||||||||
Deferred tax assets
|
9.6
|
2.3
|
2.3
|
|||||||||
Total non-current assets
|
5,560.0
|
7,522.8
|
7,353.7
|
|||||||||
Inventories
|
156.4
|
225.7
|
190.7
|
|||||||||
Trade and other receivables
|
644.3
|
1,088.7
|
825.7
|
|||||||||
Other investments
|
918.6
|
1,871.7
|
2,233.1
|
|||||||||
Cash and cash equivalents
|
912.1
|
1,285.7
|
1,022.1
|
|||||||||
Total current assets
|
2,631.4
|
4,471.8
|
4,271.6
|
|||||||||
Total assets
|
8,191.4
|
11,994.6
|
11,625.3
|
|||||||||
Equity
|
||||||||||||
Share capital and reserves
|
1,980.7
|
2,009.9
|
1,987.7
|
|||||||||
Retained earnings
|
586.9
|
3,800.6
|
3,901.9
|
|||||||||
Equity attributable to owners of the Company
|
2,567.6
|
5,810.5
|
5,889.6
|
|||||||||
Non-controlling interests
|
3.8
|
6.8
|
6.3
|
|||||||||
Total equity
|
2,571.4
|
5,817.3
|
5,895.9
|
|||||||||
Liabilities
|
||||||||||||
Lease liabilities
|
2,952.0
|
3,020.0
|
2,778.7
|
|||||||||
Loans and other liabilities
|
79.3
|
140.1
|
91.9
|
|||||||||
Employee benefits
|
39.4
|
45.0
|
45.2
|
|||||||||
Deferred tax liabilities
|
13.0
|
139.4
|
151.4
|
|||||||||
Total non-current liabilities
|
3,083.7
|
3,344.5
|
3,067.2
|
|||||||||
Trade and other payables
|
554.6
|
846.6
|
896.2
|
|||||||||
Provisions
|
58.3
|
51.6
|
50.2
|
|||||||||
Contract liabilities
|
207.3
|
410.1
|
238.9
|
|||||||||
Lease liabilities
|
1,668.0
|
1,424.7
|
1,380.8
|
|||||||||
Loans and other liabilities
|
48.1
|
99.8
|
96.1
|
|||||||||
Total current liabilities
|
2,536.3
|
2,832.8
|
2,662.2
|
|||||||||
Total liabilities
|
5,620.0
|
6,177.3
|
5,729.4
|
|||||||||
Total equity and liabilities
|
8,191.4
|
11,994.6
|
11,625.3
|
Nine Months Ended
September 30 |
Three Months Ended
September 30 |
Year Ended
December 31 |
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
Income from voyages and related services
|
3,956.9
|
10,372.7
|
1,273.0
|
3,227.5
|
12,561.6
|
|||||||||||||||
Cost of voyages and related services
|
||||||||||||||||||||
Operating expenses and cost of services
|
(2,922.0
|
)
|
(3,630.2
|
)
|
(1,008.4
|
)
|
(1,249.6
|
)
|
(4,764.5
|
)
|
||||||||||
Depreciation
|
(1,212.8
|
)
|
(989.7
|
)
|
(417.4
|
)
|
(373.7
|
)
|
(1,370.3
|
)
|
||||||||||
Impairment of assets
|
(2,034.9
|
)
|
(2,034.9
|
)
|
||||||||||||||||
Gross profit (loss)
|
(2,212.8
|
)
|
5,752.8
|
(2,187.7
|
)
|
1,604.2
|
6,426.8
|
|||||||||||||
Other operating income
|
2.5
|
40.8
|
0.6
|
21.5
|
48.9
|
|||||||||||||||
Other operating expenses
|
(32.5
|
)
|
(0.4
|
)
|
(22.4
|
)
|
(0.2
|
)
|
(0.9
|
)
|
||||||||||
General and administrative expenses
|
(209.4
|
)
|
(244.0
|
)
|
(63.9
|
)
|
(82.0
|
)
|
(338.3
|
)
|
||||||||||
Share of profit (loss) of associates
|
(5.2
|
)
|
1.9
|
(2.3
|
)
|
0.8
|
(0.7
|
)
|
||||||||||||
Results from operating activities
|
(2,457.4
|
)
|
5,551.1
|
(2,275.7
|
)
|
1,544.3
|
6,135.8
|
|||||||||||||
Finance income
|
117.7
|
82.3
|
35.6
|
34.9
|
130.9
|
|||||||||||||||
Finance expenses
|
(338.7
|
)
|
(164.0
|
)
|
(101.5
|
)
|
(64.8
|
)
|
(239.4
|
)
|
||||||||||
Net finance expenses
|
(221.0
|
)
|
(81.7
|
)
|
(65.9
|
)
|
(29.9
|
)
|
(108.5
|
)
|
||||||||||
Profit (loss) before income taxes
|
(2,678.4
|
)
|
5,469.4
|
(2,341.6
|
)
|
1,514.4
|
6,027.3
|
|||||||||||||
Income taxes
|
137.1
|
(1,256.9
|
)
|
71.1
|
(348.7
|
)
|
(1,398.3
|
)
|
||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||
Attributable to:
|
||||||||||||||||||||
Owners of the Company
|
(2,547.2
|
)
|
4,205.2
|
(2,272.6
|
)
|
1,163.3
|
4,619.4
|
|||||||||||||
Non-controlling interests
|
5.9
|
7.3
|
2.1
|
2.4
|
9.6
|
|||||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||
Earnings (loss) per share (US$)
|
||||||||||||||||||||
Basic earnings (loss) per 1 ordinary share
|
(21.19
|
)
|
35.05
|
(18.90
|
)
|
9.69
|
38.49
|
|||||||||||||
Diluted earnings (loss) per 1 ordinary share
|
(21.19
|
)
|
34.91
|
(18.90
|
)
|
9.66
|
38.35
|
|||||||||||||
Weighted average number of
shares for earnings (loss) per share calculation:
|
||||||||||||||||||||
Basic
|
120,194,990
|
119,983,297
|
120,219,761
|
120,047,393
|
120,012,375
|
|||||||||||||||
Diluted
|
120,194,990
|
120,443,702
|
120,219,761
|
120,439,492
|
120,444,889
|
Nine Months Ended
September 30 |
Three Months Ended
September 30 |
Year Ended
December 31 |
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||
Adjustments for:
|
||||||||||||||||||||
Depreciation and amortization
|
1,232.5
|
1,007.7
|
423.8
|
380.2
|
1,396.3
|
|||||||||||||||
Impairment loss
|
2,063.4
|
2,063.4
|
||||||||||||||||||
Net finance expenses
|
221.0
|
81.7
|
65.9
|
29.9
|
108.5
|
|||||||||||||||
Share of profits (losses) and change in fair value of investees
|
4.5
|
(5.0
|
)
|
2.3
|
(1.3
|
)
|
(2.1
|
)
|
||||||||||||
Capital loss (gain), net
|
3.2
|
(35.5
|
)
|
(4.2
|
)
|
(19.7
|
)
|
(42.7
|
)
|
|||||||||||
Income taxes
|
(137.1
|
)
|
1,256.9
|
(71.1
|
)
|
348.7
|
1,398.3
|
|||||||||||||
Other non-cash items
|
14.2
|
18.0
|
4.5
|
8.0
|
39.7
|
|||||||||||||||
860.4
|
6,536.3
|
214.1
|
1,911.5
|
7,527.0
|
||||||||||||||||
Change in inventories
|
34.3
|
(106.7
|
)
|
17.7
|
(9.5
|
)
|
(71.7
|
)
|
||||||||||||
Change in trade and other receivables
|
237.5
|
211.0
|
60.6
|
272.8
|
496.6
|
|||||||||||||||
Change in trade and other payables, including contract liabilities
|
(76.7
|
)
|
(162.9
|
)
|
19.2
|
(193.8
|
)
|
(325.7
|
)
|
|||||||||||
Change in provisions and employee benefits
|
7.0
|
15.9
|
4.1
|
18.1
|
15.9
|
|||||||||||||||
202.1
|
(42.7
|
)
|
101.6
|
87.6
|
115.1
|
|||||||||||||||
Dividends received
|
1.7
|
0.1
|
0.2
|
0.1
|
0.9
|
|||||||||||||||
Interest received
|
113.0
|
23.6
|
25.0
|
16.2
|
53.2
|
|||||||||||||||
Income taxes paid
|
(319.4
|
)
|
(1,475.8
|
)
|
(3.3
|
)
|
(343.8
|
)
|
(1,586.1
|
)
|
||||||||||
Net cash generated from operating activities
|
857.8
|
5,041.5
|
337.6
|
1,671.6
|
6,110.1
|
|||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Proceeds from sale of tangible assets, intangible assets, and interest in investees
|
21.4
|
33.1
|
3.7
|
16.2
|
48.1
|
|||||||||||||||
Acquisition and capitalized expenditures of tangible intangible assets and interest in investees
|
(75.2
|
)
|
(317.7
|
)
|
(13.7
|
)
|
(54.6
|
)
|
(345.5
|
)
|
||||||||||
Acquisition of investment instruments, net
|
(609.6
|
)
|
(1,281.5
|
)
|
(26.2
|
)
|
(765.6
|
)
|
(1,433.1
|
)
|
||||||||||
Loans granted to investees
|
(3.8
|
)
|
(2.1
|
)
|
||||||||||||||||
Change in other receivables
|
(4.7
|
)
|
(10.6
|
)
|
9.3
|
(8.0
|
)
|
(20.2
|
)
|
|||||||||||
Change in other investments (mainly deposits), net
|
2,002.6
|
367.1
|
19.9
|
556.2
|
105.7
|
|||||||||||||||
Net cash generated from (used in) investing activities
|
1,330.7
|
(1,209.6
|
)
|
(9.1
|
)
|
(255.8
|
)
|
(1,645.0
|
)
|
|||||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Receipt of long-term loans and other long-term liabilities
|
59.2
|
59.2
|
||||||||||||||||||
Repayment of lease liabilities and borrowings
|
(1,214.1
|
)
|
(965.8
|
)
|
(352.7
|
)
|
(433.3
|
)
|
(1,449.4
|
)
|
||||||||||
Change in short term loans
|
(21.0
|
)
|
(53.5
|
)
|
(53.5
|
)
|
||||||||||||||
Dividend paid to non-controlling interests
|
(7.5
|
)
|
(5.9
|
)
|
(1.3
|
)
|
(8.4
|
)
|
||||||||||||
Dividend paid to owners of the Company
|
(769.2
|
)
|
(2,948.9
|
)
|
(570.3
|
)
|
(3,303.3
|
)
|
||||||||||||
Interest paid
|
(281.5
|
)
|
(156.8
|
)
|
(98.8
|
)
|
(62.1
|
)
|
(221.0
|
)
|
||||||||||
Net cash used in financing activities
|
(2,293.3
|
)
|
(4,071.7
|
)
|
(451.5
|
)
|
(1,067.0
|
)
|
(4,976.4
|
)
|
||||||||||
Net change in cash and cash equivalents
|
(104.8
|
)
|
(239.8
|
)
|
(123.0
|
)
|
348.8
|
(511.3
|
)
|
|||||||||||
Cash and cash equivalents at beginning of the period
|
1,022.1
|
1,543.3
|
1,040.3
|
946.8
|
1,543.3
|
|||||||||||||||
Effect of exchange rate fluctuation on cash held
|
(5.2
|
)
|
(17.8
|
)
|
(5.2
|
)
|
(9.9
|
)
|
(9.9
|
)
|
||||||||||
Cash and cash equivalents at the end of the period
|
912.1
|
1,285.7
|
912.1
|
1,285.7
|
1,022.1
|
Nine months ended
September 30 |
Three months ended
September 30 |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net income (loss)
|
(2,541
|
)
|
4,212
|
(2,270
|
)
|
1,166
|
||||||||||
Financial expenses, net
|
221
|
82
|
66
|
30
|
||||||||||||
Income taxes
|
(137
|
)
|
1,257
|
(71
|
)
|
348
|
||||||||||
Operating income (loss) (EBIT)
|
(2,457
|
)
|
5,551
|
(2,276
|
)
|
1,544
|
||||||||||
Non-cash charter hire expenses
|
0
|
1
|
0
|
0
|
||||||||||||
Capital gain, beyond the ordinary course of business
|
21
|
(1
|
)
|
0
|
0
|
|||||||||||
Impairment of assets
|
2,063
|
0
|
2,063
|
0
|
||||||||||||
Expenses related to legal contingencies
|
0
|
10
|
0
|
10
|
||||||||||||
Adjusted EBIT
|
(373
|
)
|
5,561
|
(213
|
)
|
1,554
|
||||||||||
Adjusted EBIT margin
|
(9
|
)%
|
54
|
%
|
(17
|
)%
|
48
|
%
|
Nine months ended
September 30 |
Three months ended
September 30 |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net income (loss)
|
(2,541
|
)
|
4,212
|
(2,270
|
)
|
1,166
|
||||||||||
Financial expenses, net
|
221
|
82
|
66
|
30
|
||||||||||||
Income taxes
|
(137
|
)
|
1,257
|
(71
|
)
|
348
|
||||||||||
Depreciation and amortization
|
1,232
|
1,008
|
424
|
380
|
||||||||||||
EBITDA
|
(1,225
|
)
|
6,559
|
(1,852
|
)
|
1,924
|
||||||||||
Capital loss, beyond the ordinary course of business
|
21
|
(1
|
)
|
0
|
0
|
|||||||||||
Impairment of assets
|
2,063
|
0
|
2,063
|
0
|
||||||||||||
Expenses related to legal contingencies
|
0
|
10
|
0
|
10
|
||||||||||||
Adjusted EBITDA
|
859
|
6,568
|
211
|
1,934
|
||||||||||||
Adjusted EBITDA margin
|
22
|
%
|
63
|
%
|
17
|
%
|
60
|
%
|
Nine months ended
September 30 |
Three months ended
September 30 |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net cash generated from operating activities
|
858
|
5,041
|
338
|
1,672
|
||||||||||||
Capital expenditures, net
|
(67
|
)
|
(293
|
)
|
(10
|
)
|
(46
|
)
|
||||||||
Free cash flow
|
791
|
4,748
|
328
|
1,626
|
Page
|
|
FINANCIAL STATEMENTS:
|
|
3
|
|
4
|
|
5
|
|
6-7
|
|
8-9
|
|
10-17
|
September 30
|
December 31
|
|||||||||||||||
2023
|
2022
|
2022
|
||||||||||||||
Note
|
US $ in millions
|
|||||||||||||||
Assets
|
||||||||||||||||
Vessels
|
6 , 7
|
3,222.9
|
4,640.5
|
4,409.9
|
||||||||||||
Containers and handling equipment
|
6 , 7
|
788.2
|
1,270.8
|
1,242.8
|
||||||||||||
Other tangible assets
|
6 , 7
|
61.1
|
76.9
|
98.5
|
||||||||||||
Intangible assets
|
6 , 7
|
93.3
|
82.5
|
92.9
|
||||||||||||
Investments in associates
|
26.8
|
26.0
|
22.0
|
|||||||||||||
Other investments
|
1,252.6
|
1,314.3
|
1,373.2
|
|||||||||||||
Other receivables
|
105.5
|
109.5
|
112.1
|
|||||||||||||
Deferred tax assets
|
9.6
|
2.3
|
2.3
|
|||||||||||||
Total non-current assets
|
5,560.0
|
7,522.8
|
7,353.7
|
|||||||||||||
Inventories
|
156.4
|
225.7
|
190.7
|
|||||||||||||
Trade and other receivables
|
644.3
|
1,088.7
|
825.7
|
|||||||||||||
Other investments
|
918.6
|
1,871.7
|
2,233.1
|
|||||||||||||
Cash and cash equivalents
|
912.1
|
1,285.7
|
1,022.1
|
|||||||||||||
Total current assets
|
2,631.4
|
4,471.8
|
4,271.6
|
|||||||||||||
Total assets
|
8,191.4
|
11,994.6
|
11,625.3
|
|||||||||||||
Equity
|
||||||||||||||||
Share capital and reserves
|
5
|
1,980.7
|
2,009.9
|
1,987.7
|
||||||||||||
Retained earnings
|
586.9
|
3,800.6
|
3,901.9
|
|||||||||||||
Equity attributable to owners of the Company
|
2,567.6
|
5,810.5
|
5,889.6
|
|||||||||||||
Non-controlling interests
|
3.8
|
6.8
|
6.3
|
|||||||||||||
Total equity
|
2,571.4
|
5,817.3
|
5,895.9
|
|||||||||||||
Liabilities
|
||||||||||||||||
Lease liabilities
|
2,952.0
|
3,020.0
|
2,778.7
|
|||||||||||||
Loans and other liabilities
|
79.3
|
140.1
|
91.9
|
|||||||||||||
Employee benefits
|
39.4
|
45.0
|
45.2
|
|||||||||||||
Deferred tax liabilities
|
13.0
|
139.4
|
151.4
|
|||||||||||||
Total non-current liabilities
|
3,083.7
|
3,344.5
|
3,067.2
|
|||||||||||||
Trade and other payables
|
554.6
|
846.6
|
896.2
|
|||||||||||||
Provisions
|
58.3
|
51.6
|
50.2
|
|||||||||||||
Contract liabilities
|
207.3
|
410.1
|
238.9
|
|||||||||||||
Lease liabilities
|
1,668.0
|
1,424.7
|
1,380.8
|
|||||||||||||
Loans and other liabilities
|
48.1
|
99.8
|
96.1
|
|||||||||||||
Total current liabilities
|
2,536.3
|
2,832.8
|
2,662.2
|
|||||||||||||
Total liabilities
|
5,620.0
|
6,177.3
|
5,729.4
|
|||||||||||||
Total equity and liabilities
|
8,191.4
|
11,994.6
|
11,625.3
|
/s/ Yair Seroussi
|
/s/ Eli Glickman
|
/s/ Xavier Destriau
|
||
Yair Seroussi
|
Eli Glickman
|
Xavier Destriau
|
||
Chairman of the Board of Directors
|
President & Chief Executive Officer
|
Chief Financial Officer
|
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||||||
Note
|
US $ in millions
|
|||||||||||||||||||||||
Income from voyages and related services
|
3,956.9
|
10,372.7
|
1,273.0
|
3,227.5
|
12,561.6
|
|||||||||||||||||||
Cost of voyages and related services
|
||||||||||||||||||||||||
Operating expenses and cost of services
|
9
|
(2,922.0
|
)
|
(3,630.2
|
)
|
(1,008.4
|
)
|
(1,249.6
|
)
|
(4,764.5
|
)
|
|||||||||||||
Depreciation
|
(1,212.8
|
)
|
(989.7
|
)
|
(417.4
|
)
|
(373.7
|
)
|
(1,370.3
|
)
|
||||||||||||||
Impairment of assets
|
7
|
(2,034.9
|
)
|
(2,034.9
|
)
|
|||||||||||||||||||
Gross profit (loss)
|
(2,212.8
|
)
|
5,752.8
|
(2,187.7
|
)
|
1,604.2
|
6,426.8
|
|||||||||||||||||
Other operating income
|
2.5
|
40.8
|
0.6
|
21.5
|
48.9
|
|||||||||||||||||||
Other operating expenses
|
7
|
(32.5
|
)
|
(0.4
|
)
|
(22.4
|
)
|
(0.2
|
)
|
(0.9
|
)
|
|||||||||||||
General and administrative expenses
|
(209.4
|
)
|
(244.0
|
)
|
(63.9
|
)
|
(82.0
|
)
|
(338.3
|
)
|
||||||||||||||
Share of profit (loss) of associates
|
(5.2
|
)
|
1.9
|
(2.3
|
)
|
0.8
|
(0.7
|
)
|
||||||||||||||||
Results from operating activities
|
(2,457.4
|
)
|
5,551.1
|
(2,275.7
|
)
|
1,544.3
|
6,135.8
|
|||||||||||||||||
Finance income
|
117.7
|
82.3
|
35.6
|
34.9
|
130.9
|
|||||||||||||||||||
Finance expenses
|
(338.7
|
)
|
(164.0
|
)
|
(101.5
|
)
|
(64.8
|
)
|
(239.4
|
)
|
||||||||||||||
Net finance expenses
|
(221.0
|
)
|
(81.7
|
)
|
(65.9
|
)
|
(29.9
|
)
|
(108.5
|
)
|
||||||||||||||
Profit (loss) before income taxes
|
(2,678.4
|
)
|
5,469.4
|
(2,341.6
|
)
|
1,514.4
|
6,027.3
|
|||||||||||||||||
Income taxes
|
137.1
|
(1,256.9
|
)
|
71.1
|
(348.7
|
)
|
(1,398.3
|
)
|
||||||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||||||
Attributable to:
|
||||||||||||||||||||||||
Owners of the Company
|
(2,547.2
|
)
|
4,205.2
|
(2,272.6
|
)
|
1,163.3
|
4,619.4
|
|||||||||||||||||
Non-controlling interests
|
5.9
|
7.3
|
2.1
|
2.4
|
9.6
|
|||||||||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||||||
Earnings (loss) per share (US$)
|
||||||||||||||||||||||||
Basic earnings (loss) per 1 ordinary share
|
11
|
(21.19
|
)
|
35.05
|
(18.90
|
)
|
9.69
|
38.49
|
||||||||||||||||
Diluted earnings (loss) per 1 ordinary share
|
11
|
(21.19
|
)
|
34.91
|
(18.90
|
)
|
9.66
|
38.35
|
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
US $ in millions
|
||||||||||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||
Other components of comprehensive income
|
||||||||||||||||||||
Items of other comprehensive income that were or will be reclassified to profit and loss
|
||||||||||||||||||||
Foreign currency translation differences for foreign operations
|
(7.0
|
)
|
(21.7
|
)
|
(1.3
|
)
|
(9.3
|
)
|
(18.0
|
)
|
||||||||||
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, net of tax
|
(25.6
|
)
|
(36.0
|
)
|
(19.5
|
)
|
(23.9
|
)
|
(34.6
|
)
|
||||||||||
Net change in fair value of investments in debt instruments at fair value through other comprehensive income, reclassified to profit and loss
|
7.9
|
2.3
|
2.6
|
|||||||||||||||||
Items of other comprehensive income that would never be reclassified to profit and loss
|
||||||||||||||||||||
Net change in fair value of investments in equity instruments at fair value through other comprehensive income, net of tax
|
1.4
|
(3.1
|
)
|
(0.2
|
)
|
(1.6
|
)
|
(1.9
|
)
|
|||||||||||
Defined benefit pension plans actuarial gains, net of tax
|
1.4
|
6.2
|
1.2
|
1.8
|
8.5
|
|||||||||||||||
Other comprehensive income for the period, net of tax
|
(21.9
|
)
|
(54.6
|
)
|
(17.5
|
)
|
(33.0
|
)
|
(43.4
|
)
|
||||||||||
Total comprehensive income for the period
|
(2,563.2
|
)
|
4,157.9
|
(2,288.0
|
)
|
1,132.7
|
4,585.6
|
|||||||||||||
Attributable to:
|
||||||||||||||||||||
Owners of the Company
|
(2,568.2
|
)
|
4,152.7
|
(2,289.8
|
)
|
1,130.8
|
4,578.2
|
|||||||||||||
Non-controlling interests
|
5.0
|
5.2
|
1.8
|
1.9
|
7.4
|
|||||||||||||||
Total comprehensive income for the period
|
(2,563.2
|
)
|
4,157.9
|
(2,288.0
|
)
|
1,132.7
|
4,585.6
|
Attribute to the owners of the Company
|
||||||||||||||||||||||||||||
Share
capital
|
General
reserves (*)
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interests
|
Total
equity
|
||||||||||||||||||||||
US $ in millions
|
||||||||||||||||||||||||||||
For the nine months period ended September 30, 2023
|
||||||||||||||||||||||||||||
Balance at December 31, 2022
|
925.9
|
1,097.3
|
(35.5
|
)
|
3,901.9
|
5,889.6
|
6.3
|
5,895.9
|
||||||||||||||||||||
Loss for the period
|
(2,547.2
|
)
|
(2,547.2
|
)
|
5.9
|
(2,541.3
|
)
|
|||||||||||||||||||||
Other comprehensive income for the period, net of tax
|
(16.3
|
)
|
(6.1
|
)
|
1.4
|
(21.0
|
)
|
(0.9
|
)
|
(21.9
|
)
|
|||||||||||||||||
Share-based compensation
|
15.4
|
15.4
|
15.4
|
|||||||||||||||||||||||||
Exercise of options
|
0.5
|
(0.5
|
)
|
|||||||||||||||||||||||||
Dividend to owners of the Company
|
(769.2
|
)
|
(769.2
|
)
|
(769.2
|
)
|
||||||||||||||||||||||
Dividend to non-controlling interests in subsidiaries
|
(7.5
|
)
|
(7.5
|
)
|
||||||||||||||||||||||||
Balance at September 30, 2023
|
926.4
|
1,095.9
|
(41.6
|
)
|
586.9
|
2,567.6
|
3.8
|
2,571.4
|
||||||||||||||||||||
For the three months period ended September 30, 2023
|
||||||||||||||||||||||||||||
Balance at June 30, 2023
|
926.3
|
1,109.1
|
(40.6
|
)
|
2,858.3
|
4,853.1
|
2.0
|
4,855.1
|
||||||||||||||||||||
Loss for the period
|
(2,272.6
|
)
|
(2,272.6
|
)
|
2.1
|
(2,270.5
|
)
|
|||||||||||||||||||||
Other comprehensive income for the period, net of tax
|
(17.4
|
)
|
(1.0
|
)
|
1.2
|
(17.2
|
)
|
(0.3
|
)
|
(17.5
|
)
|
|||||||||||||||||
Share-based compensation
|
4.3
|
4.3
|
4.3
|
|||||||||||||||||||||||||
Exercise of options
|
0.1
|
(0.1
|
)
|
|||||||||||||||||||||||||
Balance at September 30, 2023
|
926.4
|
1,095.9
|
(41.6
|
)
|
586.9
|
2,567.6
|
3.8
|
2,571.4
|
Attribute to the owners of the Company
|
||||||||||||||||||||||||||||
Share
capital
|
General
reserves (*)
|
Translation
reserve
|
Retained
earnings
|
Total
|
Non-controlling
interests
|
Total
equity
|
||||||||||||||||||||||
US $ in millions
|
||||||||||||||||||||||||||||
For the nine months period ended September 30, 2022
|
||||||||||||||||||||||||||||
Balance at December 31, 2021
|
923.2
|
1,107.9
|
(19.7
|
)
|
2,580.6
|
4,592.0
|
7.5
|
4,599.5
|
||||||||||||||||||||
Initial application of an amendment to IAS 37
|
(3.3
|
)
|
(3.3
|
)
|
(3.3
|
)
|
||||||||||||||||||||||
Balance at January 1, 2022
|
923.2
|
1,107.9
|
(19.7
|
)
|
2,577.3
|
4,588.7
|
7.5
|
4,596.2
|
||||||||||||||||||||
Profit for the period
|
4,205.2
|
4,205.2
|
7.3
|
4,212.5
|
||||||||||||||||||||||||
Other comprehensive income for the period, net of tax
|
(19.5
|
)
|
(33.0
|
)
|
(52.5
|
)
|
(2.1
|
)
|
(54.6
|
)
|
||||||||||||||||||
Share-based compensation
|
18.0
|
18.0
|
18.0
|
|||||||||||||||||||||||||
Exercise of options
|
2.2
|
(2.2
|
)
|
|||||||||||||||||||||||||
Dividend to owners of the Company
|
(2,948.9
|
)
|
(2,948.9
|
)
|
(2,948.9
|
)
|
||||||||||||||||||||||
Dividend to non-controlling interests in subsidiaries
|
(5.9
|
)
|
(5.9
|
)
|
||||||||||||||||||||||||
Balance September 30, 2022
|
925.4
|
1,123.7
|
(39.2
|
)
|
3,800.6
|
5,810.5
|
6.8
|
5,817.3
|
||||||||||||||||||||
For the three months period ended September 30, 2022
|
||||||||||||||||||||||||||||
Balance at June 30, 2022
|
925.4
|
1,115.7
|
(30.5
|
)
|
3,231.4
|
5,242.0
|
6.2
|
5,248.2
|
||||||||||||||||||||
Profit for the period
|
1,163.3
|
1,163.3
|
2.4
|
1,165.7
|
||||||||||||||||||||||||
Other comprehensive income for the period, net of tax
|
(8.7
|
)
|
(23.8
|
)
|
(32.5
|
)
|
(0.5
|
)
|
(33.0
|
)
|
||||||||||||||||||
Share-based compensation
|
8.0
|
8.0
|
8.0
|
|||||||||||||||||||||||||
Dividend to owners of the Company
|
(570.3
|
)
|
(570.3
|
)
|
(570.3
|
)
|
||||||||||||||||||||||
Dividend to non-controlling interests in subsidiaries
|
(1.3
|
)
|
(1.3
|
)
|
||||||||||||||||||||||||
Balance at September 30, 2022
|
925.4
|
1,123.7
|
(39.2
|
)
|
3,800.6
|
5,810.5
|
6.8
|
5,817.3
|
||||||||||||||||||||
For the year ended December 31, 2022
|
||||||||||||||||||||||||||||
Balance at December 31, 2021
|
923.2
|
1,107.9
|
(19.7
|
)
|
2,580.6
|
4,592.0
|
7.5
|
4,599.5
|
||||||||||||||||||||
Initial application of amendment to IAS 37
|
(3.3
|
)
|
(3.3
|
)
|
(3.3
|
)
|
||||||||||||||||||||||
Balance at January 1, 2022
|
923.2
|
1,107.9
|
(19.7
|
)
|
2,577.3
|
4,588.7
|
7.5
|
4,596.2
|
||||||||||||||||||||
Profit for the year
|
4,619.4
|
4,619.4
|
9.6
|
4,629.0
|
||||||||||||||||||||||||
Other comprehensive income for the year, net of tax
|
(33.9
|
)
|
(15.8
|
)
|
8.5
|
(41.2
|
)
|
(2.2
|
)
|
(43.4
|
)
|
|||||||||||||||||
Exercise of options
|
2.7
|
(2.7
|
)
|
|||||||||||||||||||||||||
Share-based compensation
|
25.8
|
25.8
|
25.8
|
|||||||||||||||||||||||||
Dividend to owners of the Company
|
(3,303.3
|
)
|
(3,303.3
|
)
|
(3,303.3
|
)
|
||||||||||||||||||||||
Acquisition of subsidiary with non-controlling interest
|
0.2
|
0.2
|
(0.2
|
)
|
||||||||||||||||||||||||
Dividend to non-controlling interests in subsidiaries
|
(8.4
|
)
|
(8.4
|
)
|
||||||||||||||||||||||||
Balance at December 31, 2022
|
925.9
|
1,097.3
|
(35.5
|
)
|
3,901.9
|
5,889.6
|
6.3
|
5,895.9
|
Nine months ended
|
Three months ended
|
Year ended
|
||||||||||||||||||
September 30
|
September 30
|
December 31
|
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
US $ in millions
|
||||||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||||||
Profit (loss) for the period
|
(2,541.3
|
)
|
4,212.5
|
(2,270.5
|
)
|
1,165.7
|
4,629.0
|
|||||||||||||
Adjustments for:
|
||||||||||||||||||||
Depreciation and amortization
|
1,232.5
|
1,007.7
|
423.8
|
380.2
|
1,396.3
|
|||||||||||||||
Impairment loss
|
2,063.4
|
2,063.4
|
||||||||||||||||||
Net finance expenses
|
221.0
|
81.7
|
65.9
|
29.9
|
108.5
|
|||||||||||||||
Share of profits (losses) and change in fair value of investees
|
4.5
|
(5.0
|
)
|
2.3
|
(1.3
|
)
|
(2.1
|
)
|
||||||||||||
Capital loss (gain), net
|
3.2
|
(35.5
|
)
|
(4.2
|
)
|
(19.7
|
)
|
(42.7
|
)
|
|||||||||||
Income taxes
|
(137.1
|
)
|
1,256.9
|
(71.1
|
)
|
348.7
|
1,398.3
|
|||||||||||||
Other non-cash items
|
14.2
|
18.0
|
4.5
|
8.0
|
39.7
|
|||||||||||||||
860.4
|
6,536.3
|
214.1
|
1,911.5
|
7,527.0
|
||||||||||||||||
Change in inventories
|
34.3
|
(106.7
|
)
|
17.7
|
(9.5
|
)
|
(71.7
|
)
|
||||||||||||
Change in trade and other receivables
|
237.5
|
211.0
|
60.6
|
272.8
|
496.6
|
|||||||||||||||
Change in trade and other payables, including contract
|
||||||||||||||||||||
liabilities
|
(76.7
|
)
|
(162.9
|
)
|
19.2
|
(193.8
|
)
|
(325.7
|
)
|
|||||||||||
Change in provisions and employee benefits
|
7.0
|
15.9
|
4.1
|
18.1
|
15.9
|
|||||||||||||||
202.1
|
(42.7
|
)
|
101.6
|
87.6
|
115.1
|
|||||||||||||||
Dividends received
|
1.7
|
0.1
|
0.2
|
0.1
|
0.9
|
|||||||||||||||
Interest received
|
113.0
|
23.6
|
25.0
|
16.2
|
53.2
|
|||||||||||||||
Income taxes paid
|
(319.4
|
)
|
(1,475.8
|
)
|
(3.3
|
)
|
(343.8
|
)
|
(1,586.1
|
)
|
||||||||||
Net cash generated from operating activities
|
857.8
|
5,041.5
|
337.6
|
1,671.6
|
6,110.1
|
|||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Proceeds from sale of tangible assets, intangible assets,
|
||||||||||||||||||||
and interest in investees
|
21.4
|
33.1
|
3.7
|
16.2
|
48.1
|
|||||||||||||||
Acquisition and capitalized expenditures of tangible assets,
|
||||||||||||||||||||
intangible assets and interest in investees
|
(75.2
|
)
|
(317.7
|
)
|
(13.7
|
)
|
(54.6
|
)
|
(345.5
|
)
|
||||||||||
Acquisition of investment instruments, net
|
(609.6
|
)
|
(1,281.5
|
)
|
(26.2
|
)
|
(765.6
|
)
|
(1,433.1
|
)
|
||||||||||
Loans granted to investees
|
(3.8
|
)
|
(2.1
|
)
|
||||||||||||||||
Change in other receivables
|
(4.7
|
)
|
(10.6
|
)
|
9.3
|
(8.0
|
)
|
(20.2
|
)
|
|||||||||||
Change in other investments (mainly deposits), net
|
2,002.6
|
367.1
|
19.9
|
556.2
|
105.7
|
|||||||||||||||
Net cash generated from (used in) investing activities
|
1,330.7
|
(1,209.6
|
)
|
(9.1
|
)
|
(255.8
|
)
|
(1,645.0
|
)
|
Nine months ended
|
Three months ended
|
Year ended
|
||||||||||||||||||
September 30
|
September 30
|
December 31
|
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
US $ in millions
|
||||||||||||||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Receipt of long-term loans and other long-term liabilities
|
59.2
|
59.2
|
||||||||||||||||||
Repayment of lease liabilities and borrowings
|
(1,214.1
|
)
|
(965.8
|
)
|
(352.7
|
)
|
(433.3
|
)
|
(1,449.4
|
)
|
||||||||||
Change in short term loans
|
(21.0
|
)
|
(53.5
|
)
|
(53.5
|
)
|
||||||||||||||
Dividend paid to non-controlling interests
|
(7.5
|
)
|
(5.9
|
)
|
(1.3
|
)
|
(8.4
|
)
|
||||||||||||
Dividend paid to owners of the Company
|
(769.2
|
)
|
(2,948.9
|
)
|
(570.3
|
)
|
(3,303.3
|
)
|
||||||||||||
Interest paid
|
(281.5
|
)
|
(156.8
|
)
|
(98.8
|
)
|
(62.1
|
)
|
(221.0
|
)
|
||||||||||
Net cash used in financing activities
|
(2,293.3
|
)
|
(4,071.7
|
)
|
(451.5
|
)
|
(1,067.0
|
)
|
(4,976.4
|
)
|
||||||||||
Net change in cash and cash equivalents
|
(104.8
|
)
|
(239.8
|
)
|
(123.0
|
)
|
348.8
|
(511.3
|
)
|
|||||||||||
Cash and cash equivalents at beginning of the period
|
1,022.1
|
1,543.3
|
1,040.3
|
946.8
|
1,543.3
|
|||||||||||||||
Effect of exchange rate fluctuation on cash held
|
(5.2
|
)
|
(17.8
|
)
|
(5.2
|
)
|
(9.9
|
)
|
(9.9
|
)
|
||||||||||
Cash and cash equivalents at the end of the period
|
912.1
|
1,285.7
|
912.1
|
1,285.7
|
1,022.1
|
1 |
Reporting entity
ZIM Integrated Shipping Services Ltd. (hereinafter - the "Company" or "ZIM") and its subsidiaries (hereinafter – "the Group" or "the
Companies") and the Group’s interests in associates, operate in the field of cargo shipping and related services.
ZIM is a company incorporated in Israel, with limited liability. ZIM’s ordinary shares have been listed on the New York
Stock Exchange (the “NYSE”) under the symbol “ZIM” on January 28, 2021. The address of the Company’s registered office is 9 Andrei Sakharov Street, Haifa, Israel.
|
2 |
Basis of compliance
|
(a) |
Statement of compliance
These condensed consolidated unaudited interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting.
They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended December 31, 2022 (hereafter
– the “annual Financial Statements”). These condensed consolidated unaudited interim Financial Statements were approved by the Board of Directors on November 15, 2023.
|
(b) |
Estimates
The preparation of Financial Statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The
significant judgments made by management in applying the Group’s accounting policies and the principal assumptions used in the estimation of uncertainty were the same as those applied to the annual financial statements.
|
3 |
Significant accounting policies
The accounting policies applied by the Group in these unaudited condensed consolidated interim Financial Statements are the same as those
applied by the Group in its annual Financial Statements.
|
4 |
Financial position
|
(a) |
The container shipping industry continues to be characterized by volatility in freight rates, charter rates and bunker prices, accompanied by continuing uncertainties in the global
trade (including ongoing inflation and the rise of interest rates in certain countries, the implications of the ongoing military conflict between Russia and Ukraine and other geopolitical challenges). In addition, regulators in certain
jurisdictions (mainly in the U.S) have become more active in their regulatory oversight over our industry, through change in regulations and interpretation of related rules.
Following the balance sheet date, a war situation has started in Israel, commencing from October 7, 2023, after a massive terrorist attack on Israeli civilian and military targets near Israel’s southern
border with the Gaza strip. As of today, there was no material impact on the Company’s operational and commercial activities. However, further escalation of this situation may affect the trade from and/or to Israel, as well as temporary
interrupt the Company’s head-office activities.
In October 2023, the European Commission announced its decision not to renew the validity of the antitrust block exemption that is currently available to operational collaborations between maritime carriers
(known as the Consortia Block Exemption Regulation, or the CBER), beyond its scheduled expiration date on April 25, 2024. As a result of this decision, commencing from the expiration date of the CBER, carriers (including the Company) will
be required to self-assess the compliance of their operational collaborations with other carriers, rather than to rely on the CBER, where currently applicable. The Company is assessing the implications of the expiration of the CBER on its
operations, but it does not currently believe that it will have a material impact on its operations as currently conducted.
Following the peak levels reached during 2021 and the first quarter of 2022, freight rates have decreased in most trades throughout the remainder of the year 2022 and continued to further decrease during the
reported period.
In view of the aforementioned business environment and in order to constantly improve the Group’s results of operations and liquidity position, Management continues to optimize its network by considering, and
when appropriate, implementing structural changes, participating in partnerships and cooperation agreements and by upgrading its customer’s offerings, whilst seeking operational excellence and cost efficiencies.
In August 2023, the Company entered into a new operational cooperation agreement with MSC, encompassing several trades, including services connecting the Indian subcontinent with the East Mediterranean, the
East Mediterranean with Northern Europe, and services connecting East Asia with Oceania. The agreements include vessel sharing, slot purchases and swap arrangements, and are designed to significantly enhance operational efficiencies, as
well as to further elevate the Company’s service levels for its customers.
At each reporting date, the Company reviews the carrying amount of its operating assets and assesses them for impairment when indications exist. As of September 30, 2023, the Company recorded an impairment
loss in a total amount of US$ 2,063.4 million - see also Note 7 for further details of the Company’s analysis.
|
4 |
Financial position (cont’d)
|
(b) |
In the second quarter of 2023, further to an expiration of related repurchase options, the Company concluded that certain vessels, which were previously subject to a sale and lease
back transaction accounted as a secured borrowing, will be redelivered on lease maturity. Accordingly, the Company recorded US$ 46 million as a financial expense for remeasurement of the related liability and US$ 21 million as a capital
loss for derecognizing such liability and the related vessels (both with no cash impact).
|
(c) |
Charter agreements:
Further to the Company’s long-term agreement with Seaspan for the chartering of ten 15,000 TEU new-build liquefied natural gas (LNG) dual-fuel vessels, six of such vessels were delivered to the Company,
commencing February 2023. As of today, seven additional new-build vessels were delivered to the Company in accordance with other chartering agreements.
Additional vessels related to these agreements, as well as to other chartering agreements the Company entered into during 2021 and 2022, are scheduled to be delivered to the Company during 2023 and 2024
(see also Note 1(b) and Note 26 to the Company’s 2022 annual financial statements).
|
(d) |
Dividends:
In April 2023, further to the approval by the Company’s Board of Directors in March 2023, the Company distributed a dividend in an amount of US$ 769 million,
reflecting US$ 6.40 per ordinary share.
|
(e) |
In 2020, a regulator in a certain jurisdiction decided to exclude a wholly-owned subsidiary of the Company from an industry-related competition law investigation, initiated earlier in that year. In June 2023, a local court accepted an
appeal on the decision to exclude this Company subsidiary from the said investigation, which is expected to be re-launched. At this preliminary stage, based on the opinion of the Company’s legal advisors, the outcome of this matter cannot
be assessed.
|
(f) |
In June 2023 the Company (and its wholly owned digital freight forwarded subsidiary, Ship4WD) entered into an agreement with a factoring service provider, for the recurring sale of receivables, as part of the Company's initiatives to
provide its customers with additional services, including trade credit. The sale of the receivables under this arrangement meets the conditions for derecognition of financial assets as prescribed in IFRS 9.
Earlier this year, the Company entered into a transaction with this factoring service provider according to which the Company made an equity investment in this
entity and agreed to provide it a three-year revolving credit facility, secured by account receivables, of approximately US$100 million. According to the terms, the Company will be entitled to exercise warrants to the factoring service
provider preferred shares in trenches, based on amounts drawn. In October 2023, the factoring service provider drew under this arrangement an amount of US$ 1 million.
|
5 |
Capital and reserves
Share-Based Payment Arrangements
During the reported period, the Board of Directors approved grants of share options to officers, and employees, as detailed below:
|
Grant date
|
Number of instruments
|
Instrument terms
|
Vesting terms
|
Contractual life
|
||||
August 2023
|
80,868
|
Each option is exercisable into one ordinary share on a cash-less basis.
|
These options shall vest upon the first, second, third and fourth anniversary, in four equal instalments of 25% each.
|
5 years
|
Fair Value
|
USD 7.06
|
Share price on grant date
|
USD 14.26
|
Exercise price
|
USD 13.84
|
Expected volatility
|
50.1%
|
Expected life
|
5 years
|
Expected dividends
|
0%
|
Risk-free interest rate
|
4.3%
|
6 |
Right-of-use assets
|
Balance at
September 30
|
Balance at
December 31
|
|||||||||||
2023
|
2022
|
2022
|
||||||||||
US $ in millions
|
||||||||||||
Vessels
|
3,109.4
|
4,191.9
|
3,967.3
|
|||||||||
Containers and handling equipment
|
292.1
|
396.8
|
380.0
|
|||||||||
Other tangible assets
|
35.7
|
51.0
|
58.0
|
|||||||||
3,437.2
|
4,639.7
|
4,405.3
|
7 |
Impairment test
Further to the volatile market terms discussed in Note 4, as well as the prolonging decrease in its
market capitalization value, the Company tested its assets for impairment, as of September 30, 2023. For the purpose of IAS 36, further to the continuing increase in its vehicle shipping services activities, the Company concluded that its
operating assets are grouped to two cash-generating units (CGUs), Container shipping services and Vehicle shipping services.
The Company estimated the recoverable amount of both CGUs on the basis of value-in-use, using the discounted cash flow
(DCF) method.
The Company’s projections were estimated for the period ended on June 30, 2028 and a representative terminal year intended
to reflect a long-term steady state. The key assumptions regarding both CGUs are set forth below:
|
• |
Detailed cash flows for the abovementioned period, based upon the Company’s business plans.
|
• |
Freight rates: expected to be further affected by industry’s supply and demand dynamics, as well as by macroeconomic trends and uncertainties. Freight rates of Containers shipping services are expected to remain at depressed levels in
the coming quarters.
|
• |
Carried volume: expected to increase over the projected period, in accordance with the Company’s fleet structure and business plans.
|
• |
Bunkering costs: according to the future price curves of fuel and liquefied natural gas (LNG).
|
• |
Charter hire rates: according to contractual rates in effect as of September 30, 2023, and estimated market rates for future renewals.
|
• |
Post tax discount rate of 12.5% (reflecting an increase of 1.0% from prior analysis carried out in 2022 and during the reported period).
|
• |
Long-term nominal growth rate of 2.5%.
|
• |
Tax payments in accordance with the Company’s corporate tax rate of 23%.
|
US $ in millions
|
Income statement line item
|
||||
Vessels (*)
|
1,598.7
|
Impairment of assets
|
|||
Containers and handling equipment (*)
|
391.8
|
Impairment of assets
|
|||
Other tangible assets (*)
|
63.8
|
Impairment of assets / Other operating expenses (**)
|
|||
Goodwill
|
9.1
|
Impairment of assets
|
|||
2,063.4
|
8 |
Segment information
ZIM is managed as one operating unit, generating revenues from operating a global liner service network of cargo shipping
and related services, in which lines share the use of its resources and their performance are co-dependent. Accordingly, the chief operating decision maker manages and allocates resources to the entire liner network. As there is no
appropriate allocation for the Group’s results, assets and liabilities, these are all attributed to the Group’s sole operating segment.
Freight revenues are disaggregated geographically by trade zone, as follows:
|
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
US $ in millions
|
||||||||||||||||||||
Freight Revenues from containerized cargo:
|
||||||||||||||||||||
Pacific
|
1,357.0
|
4,716.9
|
476.0
|
1,420.2
|
5,504.2
|
|||||||||||||||
Cross-Suez
|
434.3
|
1,293.8
|
111.8
|
379.2
|
1,528.5
|
|||||||||||||||
Atlantic
|
501.8
|
966.2
|
123.8
|
304.6
|
1,231.3
|
|||||||||||||||
Intra-Asia
|
483.9
|
1,644.3
|
164.5
|
500.9
|
1,945.9
|
|||||||||||||||
Latin America
|
305.6
|
584.8
|
110.9
|
218.3
|
742.3
|
|||||||||||||||
3,082.6
|
9,206.0
|
987.0
|
2,823.2
|
10,952.2
|
||||||||||||||||
Other Revenues (*)
|
874.3
|
1,166.7
|
286.0
|
404.3
|
1,609.4
|
|||||||||||||||
3,956.9
|
10,372.7
|
1,273.0
|
3,227.5
|
12,561.6
|
9 |
Operating expenses and cost of services
|
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
US $ in millions
|
||||||||||||||||||||
Wages, maintenance and other vessel-operating costs
|
24.9
|
25.2
|
7.8
|
9.1
|
34.5
|
|||||||||||||||
Expenses relating to fleet equipment (mainly containers and chassis)
|
23.8
|
21.9
|
8.2
|
6.7
|
29.1
|
|||||||||||||||
Bunker and lubricants
|
820.3
|
1,065.8
|
266.5
|
419.3
|
1,434.8
|
|||||||||||||||
Insurance
|
15.2
|
10.7
|
5.3
|
4.5
|
15.2
|
|||||||||||||||
Expenses related to cargo handling
|
1,273.7
|
1,515.3
|
430.4
|
501.0
|
1,981.6
|
|||||||||||||||
Port expenses
|
385.8
|
254.9
|
148.6
|
99.7
|
359.0
|
|||||||||||||||
Agents’ salaries and commissions
|
157.5
|
196.9
|
53.0
|
66.1
|
261.1
|
|||||||||||||||
Cost of related services and sundry
|
143.8
|
167.9
|
54.3
|
59.0
|
216.1
|
|||||||||||||||
Slot purchases and hire of vessels
|
57.7
|
344.7
|
27.6
|
74.3
|
398.8
|
|||||||||||||||
Hire of containers
|
19.3
|
26.9
|
6.7
|
9.9
|
34.3
|
|||||||||||||||
2,922.0
|
3,630.2
|
1,008.4
|
1,249.6
|
4,764.5
|
10 |
Financial instruments
Financial instruments measured at fair value
|
Balance at September 30,
|
Balance at December 31,
|
||||||||||||||||||||||||||||||||
2023
|
2022
|
2022
|
|||||||||||||||||||||||||||||||
US $ in millions
|
|||||||||||||||||||||||||||||||||
Level 1
|
Level 3
|
Total
|
Level 1
|
Level 3
|
Total
|
Level 1
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Fair value through profit and loss
|
|||||||||||||||||||||||||||||||||
Cash and cash equivalents:
|
|||||||||||||||||||||||||||||||||
Money markets instruments
|
539.1
|
539.1
|
|||||||||||||||||||||||||||||||
Other investments:
|
|||||||||||||||||||||||||||||||||
Equity instruments
|
10.7
|
10.7
|
11.3
|
11.3
|
11.2
|
11.2
|
|||||||||||||||||||||||||||
Loans and other liabilities:
|
|||||||||||||||||||||||||||||||||
Derivative instruments
|
(12.6
|
)
|
(12.6
|
)
|
(13.7
|
)
|
(13.7
|
)
|
|||||||||||||||||||||||||
Fair value through other comprehensive income
|
|||||||||||||||||||||||||||||||||
Other investments:
|
|||||||||||||||||||||||||||||||||
Sovereign bonds
|
1,095.9
|
1,095.9
|
824.4
|
824.4
|
893.5
|
893.5
|
|||||||||||||||||||||||||||
Corporate bonds
|
1,044.7
|
1,044.7
|
556.5
|
556.5
|
637.7
|
637.7
|
|||||||||||||||||||||||||||
Equity instruments
|
1.8
|
1.8
|
34.2
|
34.2
|
42.2
|
42.2
|
11 |
Earnings (loss) per share
Basic and diluted earnings (loss) per share
|
Nine months ended
September 30
|
Three months ended
September 30
|
Year ended
December 31
|
||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
2022
|
||||||||||||||||
US $ in millions
|
||||||||||||||||||||
Profit (loss) attributable to ordinary shareholders used to calculate basic and
diluted earnings per share (US $ in millions)
|
(2,547.2
|
)
|
4,205.2
|
(2,272.6
|
)
|
1,163.3
|
4,619.4
|
|||||||||||||
Number of shares at the beginning of the period used to calculate basic earnings (loss) per share
|
120,149,921
|
119,910,688
|
120,218,275
|
120,047,393
|
119,910,688
|
|||||||||||||||
Effect of share options
|
45,069
|
72,609
|
1,486
|
101,687
|
||||||||||||||||
Weighted average number of ordinary shares used to calculate basic earnings (loss) per share
|
120,194,990
|
119,983,297
|
120,219,761
|
120,047,393
|
120,012,375
|
|||||||||||||||
Effect of share options
|
460,405
|
392,099
|
432,514
|
|||||||||||||||||
Weighted average number of ordinary shares used to calculate diluted earnings (loss) per share
|
120,194,990
|
120,443,702
|
120,219,761
|
120,439,492
|
120,444,889
|
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