Zim Integrated Q4 2022

Container liner company Zim Integrated (ZIM) announced the Q4 2002 and full-year 2022 results on 03/13/23

  • Revenue of $2.19B
  • Net income of $417M
  • Adjusted EBITDA of $973M
  • Carried volume of 823K TEU - Full year decline was less than 5%
  • Declared a Q4 div of $6.40/sh (way higher than my expectations)
  • Cash of over $4B

ZIM - Events & Presentations - Presentations

Have not read the earnings call transcript. However, I can say there were a lot of pleasant surprises.

  • Yes, Q4 revenue dropped. Earnings also dropped. However, ZIM was still profitable in Q4 2022.
  • Container volume declined. But not as severely as I expected.
  • Dividend size was a surprise. I was expecting the dividend from the operational side to be $0.75 - $1. If there was a “top-up”, I thought ZIM mgmt would be more cautious, and maybe add 5% as “top-up” (or $1 - 2/sh)
  • Over $4B in cash.
  • More fuel-efficient vessels join the fleet in 2023.
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What is the ex dividend date for this dividend? I couldn’t find the news for that…doc

physician

2h

What is the ex dividend date for this dividend? I couldn’t find the news for that…doc

Before I provide a better resource, this heads-up. As an Israel based company, there is a 26% Israel withholding tax on ZIM dividends. This makes ZIM a bad holding for tax advantage accounts. Even taxable accounts, the high payout easily triggers filing of Form 1116 (for US shareholders)

Decide how to dissect page 5.
The ex-div is either 03/24/23 or 04/04/23.

ZIM-FY-Q4-2022-Earnings-Release-Final-13-3-2023.pdf (q4cdn.com)

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Hi Doc,

I think it is 4th April 2023

This is from the ZIM investor relations page

2022 Dividends
In accordance with the Company’s dividend policy, ZIM’s Board of Directors declared a cash dividend of approximately $769 million, or $6.40 per ordinary share. Together with prior dividend distributions made on account of 2022, dividend distributions for the year totaled approximately 44% of the year’s net income. The dividend will be paid on April 3, 2023, to holders of ZIM ordinary shares as of March 24, 2023. Since the foregoing declared dividend amount per share constitutes more than 25% of the Company’s ordinary share price on the declaration date (March 13, 2023), per the instructions of the NYSE, the ex-dividend date with respect to this dividend distribution will be April 4, 2023. Shareholders who wish to receive the dividend must hold their ZIM shares until the ex-dividend date.

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Also, had a query…I remember you mentioned using Cabot options service…How do you rate those folks? What has been the performance in this last 1 and a half years?

I am sure everyone was a genius till Jan/feb 2021…but since the debacle in 2022, it would be good to know if there are any good reliable services who have a high success rate… Do you use any of their other services, other than options?
Thanks in advance
Peter

ZIM’s Q4 2022 Earning call transcript had nice color on additional items

Years ago when I first started using their service, it was excellent. Then they spun off a high end service and ever since then it has not been very successful in my experience. I am getting ready to cancel the service. The high end service ($10,000.00/year) I can’t speak to…doc

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Ahhh, that is the catch. But even at 74% that is one nice dividend and I noticed they have paid a pretty nice dividend for the past two years. If I had this in my Roth would I need to be filing an 1116? Can I file an Israeli Tax return and get my WH back?

@JimA759s - If one is making ZIM an income play, that withholding does represent a challenge. But, if ZIM is a holding within the context of a portfolio, the withholding just represents something on the tax side, most of which can offset other taxable gains.

Regarding ZIM as a Roth holding - I am not aware of a way of avoiding the withholding, or reclaiming it. Contrast this to a Canadian stock e.g. BNS in a Roth ac. The Canadian tax authorities exclude withholding on BNS if shares are/were purchased in a Roth ac. So BNS (and other Canadian stocks) does not pose the same challange as ZIM

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To be frank, I was sort of giggling when I asked about the Israeli Tax Refund. I was thinking of it as an income play; but since I never sell anything it would be a ‘till death do us part’ kind of play. But I’m a bit more concerned about Israel recently and so will probably stay away.

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04/04

  • The big event is done - ZIM paid their hefty Q4 2022 dividend today. As alluded to earlier in the thread, this was a special case where one needed to still own shares today, to get the dividend. I hedged my bet by trimming my ZIM position yesterday. Sure enough those shares did not qualify for the dividend.

ZIM shares held up quite well after trading ex-div. Company has a lot of cash. Let’s see how ZIM manage thru the uncertain times.

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I purchased ZIM in 2021 and the dividends have paid for the stock. They stopped the dividend for this quarter, but the company is well managed and making good moves in the industry. The stock is near its 52 week low with a 52 week high of 53.59. I’m anticipating both capitol gains and awesome dividends. I’ve set a buy limit at 12.28 to add more to my portfolio.

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@mikechristenson - Welcome to the Shipping News board!

I took my lumps and dumped most of my ZIM shares in Apr-May 2023.
While shares may re-trace lower, I think ZIM’s current cash position lends support to the share price at these levels. ZIM might not pay another div in calendar year 2023. But, if the container shipping sector gets better visibility, things may look up in early 2024.

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I thought I had commented on Q1 2023 results. Browsing this board I don’t see a ZIM Q1 thread. The big item for Q1 2023 was that ZIM swung to a loss in Q1. Thus, no Q1 2023 div. Given the absence of a Q1 2023 results thread, I will post a thread on Q1 2023 soon.

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