Israeli container line Zim has said it intends to use some of its record profits to pay back bonds issues early.
The shipowner will carry out a mandatory redemption of all its series 1 and series 2 unsecured notes due in 2023 at a cost of $351.6m.
This figure includes interest. The actual outstanding bond amount is $349m.
Eli Glickman, Zim's chief executive, said the company's success in achieving "this important milestone" earlier than expected — and earlier than the stated maturity by two years — highlights the benefits of its global niche strategy and continued robust cash-flow generation.
"With significant financial strength and a differentiated, proven approach, we remain in a strong position to capitalise on favourable container liner shipping fundamentals for the benefit of our shareholders," he added.
Results due in May
Zim's first-quarter result is due in May and investment bank Fearnley Securities expects the company to have "good visibility" on earnings into the third quarter.
The analysts said Ebitda for the whole year should now be $2bn, up from its previous estimate of $1.5bn.
But Fearnley continues to see a potential upside bringing this figure towards $2.5bn.
The investment bank has a "buy" rating on the stock, with a target price of $45 per share, against around $33 now.
Zim's fourth-quarter profit was its best-ever financial result on the back of a massive upturn in freight rates and volumes.
