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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN
PRIVATE ISSUER
PURSUANT TO RULE
13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE
ACT OF 1934
For the month of March, 2021
Commission File Number: 001-39937
ZIM Integrated Shipping Services Ltd.
(Exact Name of Registrant as Specified
in Its Charter)
9 Andrei Sakharov Street
P.O. Box 15067
Matam, Haifa 3190500, Israel
+972 (4) 865-2000
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F:
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant
is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
On March 22, 2021, ZIM Integrated Shipping Services Ltd. (the
“Company”) issued a press release announcing its consolidated results for the three and twelve months ended December
31, 2020.
The information in this Form 6-K (including
Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange
Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933 or the Exchange Act.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
| ZIM INTEGRATED SHIPPING SERVICES LTD. | |||
| By: | /s/ Noam Nativ | ||
| Noam Nativ | |||
| EVP General Counsel and Corporate Secretary | |||
Date: March 22, 2021
EXHIBIT INDEX
| EXHIBIT NO. | DESCRIPTION | |
| 99.1 | Press Release dated March 22, 2021 |
Exhibit 99.1
CONFIDENTIAL
ZIM Press Release:
ZIM Reports Financial
Results for the Fourth Quarter
and Full Year 2020
Generates Record Full
Year Net Income of $524 Million
Continues to Deliver
Industry Leading Operating Margins
2021 Guidance Highlights
Expected Significant Adjusted EBITDA
and Adjusted EBIT Growth
Haifa, Israel,
March 22, 2021 – ZIM Integrated Shipping Services Ltd. (NYSE:
ZIM), a global container liner shipping company, announced today its consolidated results for the three and twelve months ended
December 31, 2020.
Fourth Quarter
and Full Year 2020 Highlights
| · | Net income for the fourth quarter was $366.4 million (compared to $1.2 million in the fourth quarter of 2019), or $3.65 per share1; net income for the full year was $524.2 million (compared to a loss of $13.0 million for the full year of 2019), or $5.18 per share |
| · | Adjusted EBITDA2 for the fourth quarter was $531.3 million, a year-over-year increase of 360%; Adjusted EBITDA for the full year was $1.04 billion, a year-over-year increase of 168% |
| · | Operating income (EBIT) for the fourth quarter was $439.4 million, a year-over-year increase of 883%; operating income (EBIT) for the full year was $722 million, a year-over-year increase of 372% |
| · | Adjusted EBIT for the fourth quarter was $439.2 million, a year-over-year increase of 827%; Adjusted EBIT for the full year was $728.6 million, a year-over-year increase of 389% |
| · | Revenues for the fourth quarter were $1.36 billion, a year-over-year increase of 64%; revenues for the full year were $3.99 billion, a year-over-year increase of 21% |
______________
1
Earnings per share calculation for all periods reflect a share split of 1:10 that became effective in 2021.
2
See disclosure regarding “Use of Non-IFRS Financial Measures” below.
| · | ZIM carried 2,841 thousand TEUs in 2020, a year-over-year increase of 1% |
| · | The average freight rate per TEU in 2020 was $1,229, a year-over-year increase of 22% |
| · | Net leverage ratio3 of 1.2x at December 31, 2020 |
| · | Subsequent to year end, completed IPO, raising $204 million in net proceeds |
| · | Subsequent to year end, announced strategic long-term chartering agreement with Seaspan for ten “green” LNG-fueled vessels demonstrating ZIM’s commitment to reducing its carbon footprint and leading environment-friendly practices in the shipping industry |
Mr. Yair Seroussi,
Chairman of the Board of Directors stated, “ZIM’s IPO earlier this year was the culmination of many months of hard
work and dedication by ZIM’s management and employees in collaboration with the Board of Directors and marks the successful
turnaround the Company has undergone over the past few years. We are very pleased with the financial results released today, our
first as a public company, and believe that they are proof of the exceptional human capital at ZIM. Moreover, these capabilities
will continue to drive ZIM’s future growth and success.”
Eli Glickman,
ZIM President & CEO, stated, “Our all-time record results in 2020 and the significant milestones we have achieved year-to-date-2021
represent a truly momentous time for ZIM. During a global pandemic, we generated our highest net income in the company’s
75-year history, underscoring the benefits of our differentiated strategy and our proactive approach to address COVID-19. We also
ended the year strong, as we achieved EBIT and EBITDA at the high end of our guidance range and continued to achieve industry
leading margins. We are committed to our goal of consistently performing as one of the top three carriers in terms of EBIT margin.”
Mr. Glickman added,
“We commenced 2021 by becoming the first global container liner to list on the NYSE, highlighting our success creating a
leading asset-light shipping liner at the forefront of digitization. Following our IPO, we also announced a strategic long-term
chartering agreement for ten 15,000 TEU LNG dual-fuel container vessels, positioning ZIM to meet the
______________
3 Net
leverage ratio is defined as face value of short- and long-term debt less cash, cash equivalents and short-term deposits divided
by Adjusted EBITDA of the last twelve-month period.
growing market
demand on the Asia – US East Coast trade and advance our leadership in addressing environmental and sustainability issues.”
Mr. Glickman concluded,
“Today, ZIM is a revitalized company with new strengths, an invigorated spirit and a promising outlook for operating amid
the new realities of shipping. Combined with our dedicated team of professionals and commitment to utilizing big data and technology,
we remain well positioned to enhance our customer experiences, capitalize on favorable industry fundamentals, and maximize long-term
profitability. In 2021, as per the guidance we provide, we expect to continue our positive trajectory, achieving significant Adjusted
EBITDA and Adjusted EBIT growth and maintaining industry leading margins. We also intend to further harness our “Startup
Nation” DNA based on innovation and technological collaborations to continue to develop growth engines that provide us additional
revenue streams beyond our traditional shipping business.”
Summary of
Key Financial and Operational Results
|
Q4’20 |
Q4’19 |
2020 |
2019 |
|
| Carried volume (K-TEUs) |
799 | 698 | 2,841 | 2,821 |
| Average freight rate ($) |
1,518 | 1,017 | 1,229 | 1,009 |
| Revenue ($ in millions) |
1,361 | 827 | 3,992 | 3,300 |
| Net income ($ in millions) |
366 | 1 | 524 | (13) |
| Adjusted EBITDA )$ in millions) |
531 | 115 | 1,036 | 386 |
| Operating income (EBIT) ($ in millions) |
439 | 45 | 722 | 153 |
| Adjusted EBIT ($ in millions) |
439 | 47 | 729 | 149 |
| Adjusted EBITDA margin |
39.0% | 13.9% | 25.9% | 11.7% |
| Adjusted EBIT margin |
32.3% | 5.7% | 18.3% | 4.5% |
| Net cash generated from operating activities |
414 | 89 | 881 | 371 |
| Free cash flow ($ in millions) |
392 | 83 | 846 | 409 |
| Earnings per share ($) |
3.65 | (0.00) | 5.18 | (0.18) |
| Net debt ($ in millions) |
1,236 | 1,372 |
Financial and
Operating Results for the Fourth Quarter Ended December 31, 2020
Net income for
the fourth quarter of 2020 was $366.4 million, compared to $1.2 million for the fourth quarter of 2019. Total revenues were $1.36
billion for the fourth quarter of 2020, compared to $827.3 million for the fourth quarter of 2019, primarily driven by an increase
in revenues from containerized cargo, reflecting increases in both freight rates and carried volume.
ZIM carried 799
thousand TEUs in the fourth quarter of 2020, compared to 698 thousand TEUs in the fourth quarter of 2019. The average freight
rate per TEU was $1,518 for the fourth quarter of 2020, compared to $1,017 for the fourth quarter of 2019.
Operating income
(EBIT) for the fourth quarter of 2020 was $439.4 million, compared to $44.6 million for the fourth quarter of 2019.
Adjusted EBITDA
was $531.3 million for the fourth quarter of 2020, compared to $115.4 million for the fourth quarter of 2019. Adjusted EBIT was
$439.2 million for the fourth quarter of 2020, compared to $47.4 million for the fourth quarter of 2019. Adjusted EBITDA and Adjusted
EBIT margins for the fourth quarter of 2020 were 39% and 32%, respectively. This compares to 14% and 6% for the fourth quarter
of 2019.
Net cash generated
from operating activities was $414.4 million for the fourth quarter of 2020, compared to $89.3 million for the fourth quarter
of 2019.
Financial and
Operating Highlights for the Full Year Ended December 31, 2020
Net income for
the full year of 2020 was $524.2 million, compared to a loss of $13.0 million for the full year of 2019. Total revenues were $3.99
billion for the full year of 2020, compared to $3.30 billion for the full year of 2019, primarily driven by an increase in revenues
from containerized cargo, reflecting mainly an increase in freight rates.
Operating income
(EBIT) for the full year of 2020 was $772.0 million, compared to $153.0 million for the full year of 2019.
ZIM carried 2,841
thousand TEUs in the full year of 2020, compared to 2,821 thousand TEUs in the full year of 2019. The average freight rate per
TEU was $1,229 for the full year of 2020, compared to $1,009 for the full year of 2019.
Adjusted EBITDA
was $1.04 billion for the full year of 2020, compared to $385.9 million for the full year of 2019. Adjusted EBIT was $728.6 million
for the full year of 2020, compared to $148.9 million for the full year of 2019. Adjusted EBITDA and Adjusted EBIT margins for
the full year of 2020 were 26% and 18%, respectively. This compares to 12% and 5% for the full year of 2019.
Net cash generated
from operating activities was $880.8 million for the full year of 2020, compared to $370.6 million for the full year of 2019.
Liquidity,
Cash Flows and Capital Allocation
ZIM’s cash
and cash equivalents increased by $387 million from $183 million at December 31, 2019 to $570 million at December 31, 2020. Capital
expenditures totaled $42.6 million for the year ended December 31, 2020, compared with $16.2 million for the year ended December
31, 2019. Net debt decreased by $136.0 million from $1.37 billion as of December 31, 2019 to $1.24 billion as of December 31,
2020. ZIM’s net leverage ratio as of December 31, 2020 was 1.2x, compared to 3.6x as of December 31, 2019.
In February 2021,
the Company completed its IPO and issued 15.0 million ordinary shares, including those issued upon the exercise of the underwriters’
option, at a price to the public of $15.00 per ordinary share, for net proceeds of $204 million, after deducting underwriting
discounts and commissions and other offering expenses.
Full-Year 2021
Guidance
The Company expects
to generate Adjusted EBITDA in 2021 of between $1.40 billion and $1.60 billion and Adjusted EBIT of between $850 million to $1.05
billion.
Use of Non-IFRS
Measures in the Company’s 2021 Guidance
A reconciliation
of the Company’s non-IFRS financial measures included in its full-year 2021 guidance to corresponding IFRS measures is not
available on a forward-looking basis. In particular, the Company has not reconciled its Adjusted EBITDA and Adjusted EBIT because
the various reconciling items between such non-IFRS financial measures and such corresponding IFRS measures cannot be determined
without unreasonable effort due to the uncertainty regarding, and the potential variability of, the future costs and expenses
for which the Company adjusts, the effect of which may be significant, and all of which are difficult to predict and are subject
to frequent change.
Conference
Call Details
Management will
host a conference call and webcast (along with a slide presentation) to review the results and provide a corporate update today
at 8:00 AM ET.
To access the
live conference call by telephone, please dial the following numbers: United States 1-888-281-1167; Israel 03-918-0644; or international
+44-20-3514-1906. To access the slide presentation, click here.
The call will also be available via live webcast through ZIM’s website, located here.
Following the conclusion of the call, a replay of the conference call will be available on the Company’s website.
About ZIM
ZIM Integrated
Shipping Services Ltd. (NYSE: ZIM) is a global, asset-light container liner shipping company with leadership positions in the
markets where it operates. Founded in Israel in 1945, ZIM is one of the oldest shipping liners, with over 75 years of experience,
providing customers with innovative seaborne transportation and logistics services with a reputation for industry leading transit
times, schedule reliability and service excellence. For additional information, please visit www.zim.com.
Forward-Looking
Statements
The following
information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation
Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward-looking
words such as “may,” “might,” “will,” “should,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,”
the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties
and assumptions about the Company, may include projections of the Company’s future financial results, its anticipated growth
strategies and anticipated trends in its business. These statements are only predictions based on the Company’s current
expectations and projections about future events or results. There are important factors that could cause the Company’s
actual results,
level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements
expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited
to: market changes in freight, bunker, charter and other rates or prices, new legislation or regulation affecting the Company’s
operations, new competition and changes in the competitive environment, the outcome of legal proceedings to which the Company
is a party, and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities
and Exchange Commission, including under the caption “Risk Factors” in its 2020 Annual Report.
Although the Company
believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future
results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility
for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these
forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except
as otherwise required by law.
The Company prepares
its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International
Accounting Standards Board (IASB).
Use of Non-IFRS
Financial Measures
The Company presents
non-IFRS measures as additional performance measures as the Company believes that it enables us to compare operating performance
between periods on a consistent basis. These measures should not be considered in isolation, or as a substitute for operating
income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting
Principles as measures of profitability or liquidity. Please note that Adjusted EBITDA does not take into account debt service
requirements, or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that
may be available for the Company’s use. In addition, Non-IFRS financial measures, as those presented by the Company, may
not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated.
Adjusted EBITDA
is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net,
income taxes, depreciation and amortization in order to reach EBITDA, and further adjusted to exclude impairment of assets, non-cash
charter hire expenses, capital gains (losses) beyond the ordinary course of business and expenses related to legal contingencies.
Adjusted EBIT
is a non-IFRS financial measure which we define as net income (loss) adjusted to exclude financial expenses (income), net
and income taxes, in order to reach our results from operating activities, or EBIT, and further adjusted to exclude non-cash charter
hire expenses, impairment of assets, capital gains (losses) beyond the ordinary course of business and expenses related to legal
contingencies.
Free cash flow
is a non-IFRS measure which we define as net cash generated from operating activities plus the net cash generated (used) from
investment activities.
See the reconciliation
of net income to Adjusted EBITDA and Adjusted EBIT and net cash generated from operating activities to free cash flow under “Reconciliation
of Non-IFRS Measures” below.
Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
[email protected]
Leon Berman
The IGB Group
212-477-8438
[email protected]
Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-8652520
[email protected]
CONSOLIDATED
BALANCE SHEET
(U.S.
dollars in thousands)
|
Year ended |
||||||||
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Vessels | 948,004 | 717,941 | ||||||
| Containers and handling equipment | 520,887 | 425,738 | ||||||
| Other tangible assets | 67,133 | 69,102 | ||||||
| Intangible assets | 66,465 | 64,920 | ||||||
| Investments in associates | 8,441 | 8,444 | ||||||
| Other investments | 4,888 | 2,766 | ||||||
| Trade and other receivables | 5,293 | 5,318 | ||||||
| Deferred tax assets | 1,502 | 1,048 | ||||||
| Total non-current assets | 1,622,613 | 1,295,277 | ||||||
| Assets classified as held for sale | 11,583 | |||||||
| Inventories | 52,237 | 60,342 | ||||||
| Trade and other receivables | 520,001 | 317,059 | ||||||
| Other investments | 58,976 | 59,047 | ||||||
| Cash and cash equivalents | 570,414 | 182,786 | ||||||
| Total current assets | 1,201,628 | 630,817 | ||||||
| Total assets | 2,824,241 | 1,926,094 | ||||||
| Equity | ||||||||
| Issued capital | 88 | 88 | ||||||
| Capital reserves | 1,790,706 | 1,784,469 | ||||||
| Accumulated deficit | (1,523,528 | ) | (2,042,226 | ) | ||||
| Equity attributable to owners of the Company | 267,266 | (257,669 | ) | |||||
| Non-controlling interests | 7,189 | 5,402 | ||||||
| Total equity | 274,455 | (252,267 | ) | |||||
| Liabilities | ||||||||
| Lease liabilities | 811,840 | 641,750 | ||||||
| Loans and other liabilities | 519,471 | 541,932 | ||||||
| Employee benefits | 66,626 | 67,990 | ||||||
| Deferred tax liabilities | 339 | 350 | ||||||
| Total non-current liabilities | 1,398,276 | 1,252,022 | ||||||
| Trade and other payables | 398,876 | 422,417 | ||||||
| Provisions | 21,420 | 17,998 | ||||||
| Contract liabilities | 230,469 | 130,281 | ||||||
| Lease liabilities | 362,176 | 215,576 | ||||||
| Loans and other liabilities | 138,569 | 140,067 | ||||||
| Total current liabilities | 1,151,510 | 926,339 | ||||||
| Total liabilities | 2,549,786 | 2,178,361 | ||||||
| Total equity and liabilities | 2,824,241 | 1,926,094 | ||||||
CONSOLIDATED
INCOME STATEMENTS
(U.S.
dollars in thousands, except per share data)
|
Three months ended |
Year ended |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| Income from voyages and related services | 1,360,846 | 827,292 | 3,991,696 | 3,299,761 | ||||||||||||
| Cost of voyages and related services | ||||||||||||||||
| Operating expenses and cost of services | (796,142 | ) | (685,528 | ) | (2,835,112 | ) | (2,810,693 | ) | ||||||||
| Depreciation | (87,237 | ) | (64,709 | ) | (291,559 | ) | (226,026 | ) | ||||||||
| Gross profit | 477,467 | 77,055 | 865,025 | 263,042 | ||||||||||||
| Other operating income | 4,602 | 6,459 | 12,621 | 38,099 | ||||||||||||
| Other operating expenses | 4,914 | (5 | ) | 4,272 | (1,239 | ) | ||||||||||
| General and administrative expenses | (48,450 | ) | (40,088 | ) | (163,210 | ) | (151,605 | ) | ||||||||
| Share of profits of associates | 966 | 1,172 | 3,341 | 4,725 | ||||||||||||
| Results from operating activities | 439,499 | 44,593 | 722,049 | 153,022 | ||||||||||||
| Net finance expenses | (67,706 | ) | (41,820 | ) | (181,260 | ) | (154,300 | ) | ||||||||
| Profit (loss) before income taxes | 371,793 | 2,773 | 540,789 | (1,278 | ) | |||||||||||
| Income taxes | (5,404 | ) | (1,596 | ) | (16,599 | ) | (11,766 | ) | ||||||||
| Profit (loss) for the year | 366,389 | 1,177 | 524,190 | (13,044 | ) | |||||||||||
| Attributable to: | ||||||||||||||||
| Owners of the Company | 365,046 | (408 | ) | 517,961 | (18,149 | ) | ||||||||||
| Non-controlling interests | 1,343 | 1,585 | 6,229 | 5,105 | ||||||||||||
| Profit (loss) for the year | 366,389 | 1,177 | 524,190 | (13,044 | ) | |||||||||||
| Earnings )Loss) per share (US$)* | ||||||||||||||||
| Basic earnings (losses) per 1 ordinary share | 3.65 | (0.00 | ) | 5.18 | (0.18 | ) | ||||||||||
| Diluted earnings (losses) per 1 ordinary share | 3.49 | (0.00 | ) | 4.96 | (0.18 | ) | ||||||||||
| Weighted average number of shares for EPS calculation*: | ||||||||||||||||
| Basic | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||
| Diluted | 104,641,014 | 100,000,000 | 104,530,892 | 100,000,000 | ||||||||||||
(*) Reflect
a share split of 1:10 that became effective in 2021, in all presented periods.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(U.S.
dollars in thousands)
|
Year |
||||||||
|
2020 |
2019 |
|||||||
| Cash flows from operating activities | ||||||||
| Profit (loss) for the year | 524,190 | (13,044 | ) | |||||
| Adjustments for: | ||||||||
| Depreciation and amortization | 314,185 | 245,510 | ||||||
| Impairment loss (recovery) in respect of tangible assets | (4,329 | ) | 1,150 | |||||
| Net finance expenses | 181,260 | 154,300 | ||||||
| Share of profits and change in fair value of investees | (4,143 | ) | (4,725 | ) | ||||
| Capital gains, net | (8,814 | ) | (35,471 | ) | ||||
| Income taxes | 16,599 | 11,766 | ||||||
| 1,018,948 | 359,486 | |||||||
| Change in inventories | 8,105 | 9,731 | ||||||
| Change in trade receivables and other receivables | (204,469 | ) | 43,422 | |||||
| Change in trade and other payables including contract liabilities | 68,670 | (28,111 | ) | |||||
| Change in provisions and employee benefits | (2,152 | ) | (7,690 | ) | ||||
| (129,846 | ) | 17,352 | ||||||
| Dividends received from associates | 4,360 | 5,453 | ||||||
| Interest received | 2,317 | 1,969 | ||||||
| Income taxes paid | (14,983 | ) | (13,630 | ) | ||||
| Net cash generated from operating activities | 880,796 | 370,630 | ||||||
| Cash flows from investing activities | ||||||||
| Proceeds from sale of tangible assets, intangible assets and investments | 6,717 | 44,794 | ||||||
| Acquisition of tangible assets, intangible assets and investments | (42,641 | ) | (16,150 | ) | ||||
| Change in other investments and other receivables | 763 | 9,382 | ||||||
| Net cash generated from (used in) investing activities | (35,161 | ) | 38,026 | |||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(U.S.
dollars in thousands)
|
Year |
||||||||
|
2020 |
2019 |
|||||||
| Cash flows from financing activities | ||||||||
| Receipt of long-term loans and other long-term liabilities | 678 | |||||||
| Sale and lease back transactions | 9,052 | 13,151 | ||||||
| Repayment of borrowings and lease liabilities | (336,225 | ) | (300,763 | ) | ||||
| Change in short-term loans | 6,071 | 3,324 | ||||||
| Dividend paid to non-controlling interests | (3,344 | ) | (4,818 | ) | ||||
| Interest paid | (133,459 | ) | (122,972 | ) | ||||
| Other financial expenses paid | (2,493 | ) | ||||||
| Net cash used in financing activities | (460,398 | ) | (411,400 | ) | ||||
| Net change in cash and cash equivalents | 385,237 | (2,744 | ) | |||||
| Cash and cash equivalents at beginning of the year | 182,786 | 186,291 | ||||||
| Effect of exchange rate fluctuation on cash held | 2,391 | (761 | ) | |||||
| Cash and cash equivalents at the end of the year | 570,414 | 182,786 | ||||||
RECONCILIATION
OF NET INCOME TO ADJUSTED EBIT
(U.S.
dollars in millions)
|
Three |
Year |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| Net income | 366.4 | 1.2 | 524.2 | (13.0 | ) | |||||||||||
| Financial expenses (income), net | 67.6 | 41.8 | 181.2 | 154.3 | ||||||||||||
| Income taxes | 5.4 | 1.6 | 16.6 | 11.7 | ||||||||||||
| Operating income (EBIT) | 439.4 | 44.6 | 722.0 | 153.0 | ||||||||||||
| Non-cash charter hire expenses | 1.4 | 2.4 | 7.7 | 10.5 | ||||||||||||
| Capital gain (loss), beyond the ordinary course of business | (0.1 | ) | 0.4 | (0.1 | ) | (14.2 | ) | |||||||||
| Assets impairment loss (recovery) | (4.8 | ) | 0.0 | (4.3 | ) | 1.2 | ||||||||||
| Expenses related to legal contingencies | 3.3 | 0.0 | 3.3 | (1.6 | ) | |||||||||||
| Adjusted EBIT | 439.2 | 47.4 | 728.6 | 148.9 | ||||||||||||
| Adjusted EBIT margin | 32.3 | % | 5.7 | % | 18.3 | % | 4.5 | % | ||||||||
RECONCILIATION
OF NET INCOME TO ADJUSTED EBITDA
(U.S.
dollars in millions)
|
Three |
Year |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| Net income | 366.4 | 1.2 | 524.2 | (13.0 | ) | |||||||||||
| Financial expenses (income), net | 67.6 | 41.8 | 181.2 | 154.3 | ||||||||||||
| Income taxes | 5.4 | 1.6 | 16.6 | 11.7 | ||||||||||||
| Depreciation and amortization | 93.4 | 70.1 | 314.2 | 245.5 | ||||||||||||
| EBITDA | 532.8 | 114.7 | 1,036.2 | 398.5 | ||||||||||||
| Non-cash charter hire expenses | 0.1 | 0.3 | 0.7 | 2.0 | ||||||||||||
| Capital gain (loss), beyond the ordinary course of business | (0.1 | ) | 0.4 | (0.1 | ) | (14.2 | ) | |||||||||
| Assets impairment loss (recovery) | (4.8 | ) | 0.0 | (4.3 | ) | 1.2 | ||||||||||
| Expenses related to legal contingencies | 3.3 | 0.0 | 3.3 | (1.6 | ) | |||||||||||
| Adjusted EBITDA | 531.3 | 115.4 | 1,035.8 | 385.9 | ||||||||||||
| Adjusted EBITDA margin | 39.0 | % | 13.9 | % | 25.9 | % | 11.7 | % | ||||||||
RECONCILIATION
OF NET CASH GENERATED FROM OPERATING ACTIVITES TO FREE CASH FLOW
(U.S.
dollars in millions)
| Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| Net cash generated from operating activities | 414.4 | 89.3 | 880.8 | 370.6 | ||||||||||||
| Net cash generated from (used in) investing activities | (22.2 | ) | (6.7 | ) | (35.2 | ) | 38.0 | |||||||||
| Free cash flow | 392.2 | 82.6 | 845.6 | 408.6 | ||||||||||||