ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) Q2 2023 Earnings Call Transcript August 16, 2023 8:00 AM ET

Company Participants

Elana Holzman - Head, Investor Relations

Eli Glickman - President & Chief Executive Officer

Xavier Destriau - Chief Financial Officer

Conference Call Participants

Omar Nokta - Jefferies

Sam Bland - JP Morgan

Alexia Dogani - Barclays

Sathish Sivakumar - Citigroup

Operator

Thank you for standing by. And welcome to the ZIM Integrated Shipping Services Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

Elana Holzman, Head of Investor Relations, you may begin your conference.

Elana Holzman

Thank you, Rob, and welcome everyone to ZIM's second quarter 2023 financial results conference call. Joining me on the call today are Eli Glickman, ZIM's President and CEO; and Xavier Destriau, ZIM's CFO.

Before we begin, I would like to remind you that during the course of this call, we will make forward-looking statements regarding expectations, predictions, projections or future events or results. We believe that our expectations and assumptions are reasonable. We wish to caution you that such statements reflect only the company's current expectations and that actual events or results may differ, including materially.

You are kindly referred to consider the risk factors and cautionary language described in the documents that company filed with the Securities and Exchange Commission, including our 2022 annual report filed on Form 20-F in March. We undertake no obligation to update these forward-looking statements.

At this time, I would like to turn the call over to ZIM's CEO, Eli Glickman. Eli?

Eli Glickman

Thank you, Elana. And welcome everyone to today's call. During the second quarter and year-to-date near term container shipping market conditions continue to be challenging. Our performance in the second quarter of 2023 reflected this reality. In Q2, we generated adjusted EBITDA of $275 million and adjusted EBIT loss of $147 million. Cash flow from operations was $347 million. Our total cash position of $3.2 billion at quarter end remained strong.

Going to Slide 4. ZIM is currently in a transition period. In early 2021, we embarked on our fleet renewal program to improve our cost structure and support long-term profitable growth. During this period, we secured through a series of charter agreement, a highly competitive fleet and one that is optimally suited for our commercial strategy. This fleet is made up of 46 newbuild vessels included 28 LNG-powered container ship. Of the 46 newbuilds, eight are already part of our fleet today, four 12,000 TEU vessels and four LNG-powered 15,000 TEU vessels. We expect the delivery of three additional 15,000 TEU LNG vessels this year and the remaining three are expected in the first few months of 2024.