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Total revenues were $1,273 million for the third quarter of 2023, compared to $3,228 million for the third quarter of 2022, driven by the decrease in freight rates, partially offset by a slight increase in carried volume.
ZIM carried 867 thousand TEUs in the third quarter of 2023, compared to 842 thousand TEUs in the third quarter of 2022. The average freight rate per TEU was $1,139 for the third quarter of 2023, compared to $3,353 for the third quarter of 2022.
Operating loss (EBIT) for the third quarter of 2023 was $2,276 million, compared to operating income of $1,544 million for the third quarter of 2022. The third quarter of 2023 operating loss includes a non-cash impairment loss of $2,063 million. The decrease in operating income for the third quarter of 2023 was driven primarily by the impairment loss recorded in the current quarter and the above-mentioned decrease in revenues.
Net loss for the third quarter of 2023 was $2,270 million, compared to net income of $1,166 million for the third quarter of 2022.
Adjusted EBITDA was $211 million for the third quarter of 2023, compared to $1,934 million for the third quarter of 2022. Adjusted EBIT loss was $213 million for the third quarter of 2023, compared to adjusted EBIT of $1,554 million for the third quarter of 2022. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2023 were 17% and -17%, respectively. This compares to 60% and 48% for the third quarter of 2022, respectively.
Net cash generated from operating activities was $338 million for the third quarter of 2023, compared to $1,672 million for the third quarter of 2022.
Eli Glickman, ZIM President & CEO, stated, “ZIM’s third quarter results reflected the current operating environment, as demand remained weak and freight rates continued to deteriorate. Given our negative outlook for freight rates in the near future, we recorded a non-cash impairment loss of approximately $2.1 billion which negatively impacted our net results, as well as revised our full year guidance. We now expect to generate Adjusted EBITDA of $900 million to $1,100 million and Adjusted EBIT loss of $600 million to $400 million in 2023.”
Mr. Glickman added, “We are currently in a transition period, which we expect will extend into 2024, during which we should gradually see the benefits of the decisive actions we have taken to enhance ZIM’s commercial and operational resilience. Foremost, we embarked on a fleet renewal program, which included 46 newbuild containerships of which 28 are “green” LNG vessels, and that along with the redelivery of older, more expensive and less efficient vessels, we expect will improve our cost structure and drive long-term profitable growth. Our cost per TEU is declining and we expect to further reduce our cost base, as our chartered newbuilds, including a total of 28 dual-fuel LNG containerships, are added to our fleet through 2023-2024.”
Mr. Glickman further added, “We believe our ample total liquidity of approximately $3.1 billion at quarter-end will enable ZIM to maintain a long-term view while we weather prolonged market weakness. Specifically, we have initiated significant cost control measures, rationalized our capacity and adapted our network, with a focus on both maximizing our cash position and delivering an exceptional customer experience. Additionally, we entered into an important new collaboration with MSC during the third quarter that enhances operational efficiencies and further elevates service levels.”
Mr. Glickman concluded, “As we look towards the future, our focus is to emerge from the current downturn in a stronger position than ever. We intend to draw on our core values, leveraging data-driven strategies and the innovative spirit of our talented employees to create enduring value for both customers and shareholders. While market challenges may continue in the near term, we expect that the combination of the initiatives we have undertaken and our solid market position will drive profitable growth over the long term.”