ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) Q3 2022 Earnings Conference Call November 16, 2022 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

Alexia Dodani - Barclays

Sathish Sivakumar - Citigroup

Sam Bland - JPMorgan

Operator

Ladies and gentlemen, thank you for standing by. I am Irene, your chorus call operator. Welcome and thank you for joining the ZIM Integrated Shipping Services Q3 2022 Earnings Conference Call. Throughout today’s recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Elana Holzman, Head of Investor Relations. Please go ahead.

Elana Holzman

Thank you, Irene. And welcome to ZIM’s third quarter 2022 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 the company files with the Securities and Exchange Commission, including our 2021 annual report filed on Form 20-F on March 9, 2022. 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. ZIM’s third quarter and nine months' performance reflects continued solid execution and strengths in our financial results and profitability. These results consistent with our expectation for market normalization beginning in the second half of 2022 following an extended period of solid profit. However, over the past several weeks, we have seen a steeper decline in freight rates than we previously assumed. As consumer demand in the US and elsewhere has softened, the pace of normalization has accelerated. And based on this evolving marketing environment, we've revised our full year 2022 focus.

For 2022, we now expect to generate adjusted EBITDA between $7.4 billion to $7.7 billion, compared to our previous guidance of $7.8 billion to $8.2 billion and adjusted EBIT between $6 billion to $6.3 billion compared to the previous projection of $6.3 billion to $6.7 billion. I note that based on our current guidance, 2022 adjusted EBITDA and adjusted EBIT are expected to be once again all-time records.