CMA CGM Reports Encouraging Outlook for 2012

(Press Release)
Wednesday, March 07, 2012

CMA CGM, the world’s third largest container shipping group, reported revenue of U.S. $14.87 billion for the year ending December 31, 2011, a 4% increase on 2010. Volumes carried increased by 11%, outperforming the market’s 6.5% increase and reaching a record high of 10,016,000 teus.
The market environment was challenging, shaped by overcapacity and the steep run-up in oil prices, with per-tonne bunker prices soaring 34% over the year. CMA CGM nevertheless enjoyed a satisfactory operating performance, thanks to its extremely efficient fleet, global network and sustained cost discipline.
EBITDA stood at U.S. $711 million, down from 2010, a year in which the entire container shipping industry reported record profits.
The Group ended the year with a consolidated net loss of U.S. $30 million.
CMA CGM continued to assertively dispose of non-strategic assets during the year. It also strengthened its balance sheet by issuing U.S. $500 million in ORA equity notes to the Yildirim Group and raising an aggregate U.S. $945 million through two bond issues denominated in dollars and euros.
Although the beginning of the year was difficult for the entire industry, freight rates are now trending upwards, especially outbound Asia. Several shippers, including CMA CGM, have announced and are introducing significant rate increases as from the 1st of March 2012.
In addition, to enhance its operating performance, the Group plans to continue implementing operating partnerships with MSC on the Asia/North Europe and South America lines and with Maersk on the Asia/Mediterranean, Adriatic and Black Sea trades; deploy increasingly efficient, modern and cost-effective vessels on every trade; develop more innovative, high-quality information technology services thanks to the new strategic partnership with IBM.
CMA CGM is pursuing its cost reduction plan, which is expected to deliver U.S. $400 million in savings this year. In the same way, the decline in charter rates will reduce operating costs by US$80 million in 2012.
The Group expects to report a profit in 2012, in a market which is difficult to predict, given the scheduled arrival of a large number of new vessels and further increases in bunker costs.
The Group remains confident in the future of the industry and will continue to strengthen its positions, particularly in Russia, India, Latin America and Africa, as well as in the reefer segment.
 

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

People & Company News

BAE Systems to Expand San Diego Shipyard

BAE Systems announced it will invest approximately $100 million to expand drydocking capabilities at its San Diego shipyard.   The investment, which will include

TDDCL Seeks Input for New Repair Yard

Trinidad Dry Dock Company to develop new ship repair yard at Port of Spain; company requests Expressions of Interest for Environmental Impact Assessment and Geotechnical

NORDEN CEO: Bulk Market Challenges to Continue

Klaus Nyborg, interim CEO at Denmark-based dry bulk and product tanker shipping company Dampskibsselskabet NORDEN A/S, expects difficult dry cargo market conditions

Finance

NORDEN CEO: Bulk Market Challenges to Continue

Klaus Nyborg, interim CEO at Denmark-based dry bulk and product tanker shipping company Dampskibsselskabet NORDEN A/S, expects difficult dry cargo market conditions

Turkey Maritime Sector Alive & Kicking

Located on the periphery of two great continents, Turkey has benefitted from being in a favored position right at the center of an assertive and fast growing economic area.

Advanced Drillships a Burden for Owners as Business Slows

Not so long ago, advanced drillships costing more than half a billion dollars each and capable of operating in ever-deeper waters practically guaranteed big profits for oil-rig operators.

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

BAE Systems to Expand San Diego Shipyard

BAE Systems announced it will invest approximately $100 million to expand drydocking capabilities at its San Diego shipyard.   The investment, which will include

Washington State Ferry Tacoma Returns to Service

Washington State Ferry M/V Tacoma will return to work on the Seattle/Bainbridge Island route starting March 28 after suffering electrical damage last summer.   The

TDDCL Seeks Input for New Repair Yard

Trinidad Dry Dock Company to develop new ship repair yard at Port of Spain; company requests Expressions of Interest for Environmental Impact Assessment and Geotechnical

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.2013 sec (5 req/sec)