ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) reported a $1.3 billion net profit for the second quarter of 2022, an increase of 50% from Q1 of 2021. However, it is 24% less compared to the previous quarter. 

As shipping prices skyrocketed in the aftermath of the Covid pandemic, prices began to fall in the second quarter. As a result, Zim’s share price has dropped 45% since March, giving the company a market cap of $6.105 billion as of yesterday’s closing.

ZIM’s revenue in the second quarter was $3.4 billion, which was 44% higher than Q1 of the last year, but 8.5% lower than the previous quarter. Revenue was $7.1 billion in the first half of 2022, up 73% from the first half of 2021.

According to the ZIM financial report, the average shipping price per TEU (20-foot container) decreased from $3,848 in the first quarter to $3,596 in the second quarter, but remained 53% higher than in the second quarter of 2021. 

President and CEO of the company, Eli Glickman stated the following: “We reported today strong Q2 results, including net profit of $1.34 billion, as well as our best ever first half-year results with standout margins, among the highest of our liner peers. During this period, we maintained our strong execution, agility and commitment to profitable growth as we continue to advance ZIM’s position as an innovative digital leader of seaborne transportation. Due to our conviction in ZIM’s ability to earn sustainable long-term profits, we are increasing our quarterly dividend payout from 20% to 30% of quarterly net income, allowing shareholders to benefit from our strong results even more directly on a quarterly basis. Importantly, at the same time, we maintain our dividend policy, according to which shareholders may receive up to 50% of annual earnings.”