CMA CGM Continues Expansion, Confirms Profits

By Eric Haun
Friday, August 29, 2014
Photo: CMA CGM

The Board of Directors of CMA CGM Group, the world’s third largest container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the second quarter of 2014.

In the second quarter, in a market environment shaped by diverging developments in different regions, CMA CGM reported its consolidated revenue amounted to $4.2 billion, up 3.7% year-on-year, volumes carried increased by 8% to 3.1 million TEUs, and average revenue per TEU decreased by 3.9% over the period.

Sustained growth in volumes was mainly attributable to the development of the group’s Asia-Europe and Africa lines, and of the Asia-Pacific lines of its subsidiary ANL, reflecting CMA CGM’s enhanced services portfolio in these regions. As a result the Group achieved record-high volumes for the period, the company said.

In addition, CMA CGM claimed to maintain its commitment to operational efficiency, thereby reducing costs per TEU by 4.8%. Most notably, fuel costs per TEU fall by 9.3%, thanks to the combined effect of lower bunker consumption per unit and more moderate bunker prices.

Core EBIT amounted to $204 million in the second quarter of 2014, versus $172 million in the prior-year period, representing an 18.4% increase.

Core EBIT margin therefore stood at 4.9%, up a slight 0.2 pt compared to the first three months of the year and up a sharper 0.7 pt compared to second-quarter 2013.

Consolidated net profit came to $94 million, versus $268 million in the second quarter of 2013, with last year’s amount including a non-recurring $248.0 million in proceeds from the sale of the 49% stake in our port terminal operations subsidiary Terminal Link.

CMA CGM’s financial position remained stable, with cash maintained at a healthy level and net debt unchanged, resulting in gearing of 0.71.

In the second quarter of 2014, Standard & Poor’s raised CMA CGM's credit rating to B+, with a stable outlook.

Following the arrival of the Danube, the first 9,000 TEU long-term charter vessel deployed on the Black Sea lines, the Elbe and Rhône vessels will be delivered to CMA CGM in the coming weeks.

The group is continuing to expand its port terminal operations, with the signature of a partnership agreement with the Indian company Adani to develop a new terminal in Mundra, India, and the start of bilateral negotiations as part of a project to develop a terminal in Kingston, Jamaica, following the acceptance of the proposal by local authorities. The terminal is to become CMA CGM’s transhipment hub for the Caribbean. In addition, the group recently announced its plan to make Reunion Island its transhipment hub for the Indian Ocean following the completion of work to expand Port Reunion.

Freight rates remained volatile overall, with the usual high level of volumes at this time of the year helping drive current rate increases. On this basis, CMA CGM expects its third-quarter operating performance to be sustained.

cma-cgm.com

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Carnival Sails to Profit

The world's largest cruise company Miami-based Carnival Corp reported a net profit of $49 million, or 6 cents per share in the first quarter ended Feb. 28.   That

Ukraine Arrests Turkish Ship for Visiting Crimean Port

Turkey owned merchant ship flying the flag of Tuvalu was arrested by Ukrainian authorities over a visit it made to a port in Crimea, reports Reuters. The ship's captain detained.

USCG Flush Ice down River Systems to Facilitate Shipping

The Coast Guard cutter fleet is flushing ice through the Great Lakes river systems to prevent ice jams and facilitate commercial shipping as the shipping season

Ports

JV Wins $2bln Freeport LNG Contract in US

A joint venture (JV) between CB&I, Chiyoda International and Zachry Industrial has won a contract worth over $2bn from FLNG Liquefaction 3 for a liquefied natural

Puerto Rico Readies for Largest Cruise Ships

Thanks to a pier expansion and enhancement, Puerto Rico will welcome the two largest cruise ships in the world, Royal Caribbean International’s Oasis of the Seas and Allure of the Seas, in 2016.

Feds Delay LNG’s Port Ambrose Application

The US Coast Guard and the US Maritime Administration (MARAD) have temporarily suspended their review of the proposed Port Ambrose deep-water LNG import terminal.

Finance

JV Wins $2bln Freeport LNG Contract in US

A joint venture (JV) between CB&I, Chiyoda International and Zachry Industrial has won a contract worth over $2bn from FLNG Liquefaction 3 for a liquefied natural

Puerto Rico Readies for Largest Cruise Ships

Thanks to a pier expansion and enhancement, Puerto Rico will welcome the two largest cruise ships in the world, Royal Caribbean International’s Oasis of the Seas and Allure of the Seas, in 2016.

Carnival Sails to Profit

The world's largest cruise company Miami-based Carnival Corp reported a net profit of $49 million, or 6 cents per share in the first quarter ended Feb. 28.   That

Container Ships

Mediterranean Rescue Operations Strain Shipping

The Wall Street Journal ran a story yesterday describing how the increasing number of seaborne migrants making the journey from Africa to Europe has not only

Hamburg Süd Christens Third San Class Ship

Hamburg Süd christened its third container vessel in the new San class yesterday, officially naming newbuild San Vicente at the Cuenca del Plata terminal in Montevideo.

Asia-Europe Box Rates Fall Almost 6 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 5.5 percent to $586 per 20-foot container (TEU) in the week ended on Friday,

News

Is China Building a Naval Base in Africa?

Recently, The Namibian reported the existence of a "confidential letter from Namibia's ambassador to China, Ringo Abed, to Namibia's foreign minister stating that

JV Wins $2bln Freeport LNG Contract in US

A joint venture (JV) between CB&I, Chiyoda International and Zachry Industrial has won a contract worth over $2bn from FLNG Liquefaction 3 for a liquefied natural

Puerto Rico Readies for Largest Cruise Ships

Thanks to a pier expansion and enhancement, Puerto Rico will welcome the two largest cruise ships in the world, Royal Caribbean International’s Oasis of the Seas and Allure of the Seas, in 2016.

Logistics

Is China Building a Naval Base in Africa?

Recently, The Namibian reported the existence of a "confidential letter from Namibia's ambassador to China, Ringo Abed, to Namibia's foreign minister stating that

First Supramax Vessel for Japan-Italy Venture

'DACC Tirreno' was delivered at the Oshima shipyard in Japan yesterday, the first of four Supramax bulk carriers for the dACC Maritime Limited fleet, the joint

Feds Delay LNG’s Port Ambrose Application

The US Coast Guard and the US Maritime Administration (MARAD) have temporarily suspended their review of the proposed Port Ambrose deep-water LNG import terminal.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2136 sec (5 req/sec)