ZIM Integrated Shipping Services (NYSE: ZIM) load jumped about 11.4%before you start sharing profits to sell 3% more Wednesday after the company posted better-than-expected Q3 results.
The carrier also lowered its outlook for 2022 to reflect stability lower freight rates, lower demand and changes in contract prices – factors that are already expected in a weaker market.
ZIM (ZIM) expects 2022 adj. EBITDA of $7.4B-$7.7B and adj. EBIT of $6B-$6.3B. His previous opinion was adj. EBITDA of $7.8B-$8.2B and adj. EBIT of $6.3B-$6.7B.
“Now we expect our cargo volume to be a little lower than in 2021. On the price side, we think that the best place for charters, although the results will be limited due to the number of charters that have been changed,” said CFO Xavier Destriau after the order in finding out.
“The combination of weak demand, low inventory risk and increased risk creates a difficult environment for the shipping business,” Destriau warned.
ZIM (ZIM) also announced a $2.95/share quarterly dividend, which JP Morgan said means its dividend policy will not change.
“Although this does not change the average shape, which we think is poor, we think that these results can bring relief today and hope for a supportive price,” said researcher Samuel Bland.
Despite the long-term changes, Bland said that ZIM (ZIM) believes that the congestion of ports, the decrease in port capacity and IMO 2023 will help in the medium term / demand.
Wall Street analysts rate the shipping company a Hold, consistent with a Hold rating by SA Quant.