Israel-based global container company Zim Integrated Shipping Services Ltd. (NYSE: ZIM) has nearly tripled its value since its Wall Street IPO at the end of January, when it raised $218 million at $15 per share, at a company valuation of $1.75 billion. Boosted by a 76% rise in freight rates compared with the first quarter of 2020, the company's share price rose 1.68% on the NYSE yesterday to $41.70, giving a market cap of $4.8 billion. Following publication of its first quarter financial results, Zim's share price is up a further 3.12% in premarket trading.
In the first quarter of 2021, Zim reported revenue of $1.7 billion, up 112% from the first quarter of 2020, and above the analysts' predictions of $1.6 billion. The company reported a net profit of $590 million in the first quarter of 2021, compared with a net loss of $11.9 million in the corresponding quarter of 2020, when the Covid-19 crisis began. Zim generated cash flow of $777 million from operations in the first quarter of 2021, compared with $102 million in the first quarter of 2020.
At the end of the first quarter, Zim had $1.2 billion in cash and the company has announced that it will distribute a special dividend of $238 million ($2 per share) with the biggest beneficiary being Idan Ofer's Kenon Holdings Ltd. (NYSE: KEN; TASE: KEN), which has a 28% stake in Zim. Zim president and CEO Eli Glickman said, "Zim is a growth company, which is making a major special dividend payment. This is a company, which raised $204 million net several months ago and is now paying out a higher dividend due to the business changes that we have achieved. When I said in an interview with Globes, the day after the IPO that the story of Zim would be taught in business administration schools, I was making too low an assessment about the size of our success."
Zim increased its full-year guidance and expects to generate in 2021 adjusted EBITDA of between $2.5 billion and $2.8 billion and adjusted EBIT of between $1.85 billion to $2.15 billion.
Published by Globes, Israel business news - en.globes.co.il - on May 19, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021