CMA CGM First-Quarter 2012 Financial Results

(Press Release)
Wednesday, June 06, 2012

CMA CGM carried volume grew by 13.4% year-on-year to 2.6 million teus in the first quarter of 2012, while consolidated revenue increased by 2.6% to $3.6 billion during the period.  

The first quarter was particularly difficult for the maritime container shipping industry. In a market shaped by persistent overcapacity, freight rates fell to new lows during the period, while oil prices climbed sharply until mid-March, with Rotterdam bunker prices rising to nearly $720 per ton.

In response to these challenging market conditions, CMA CGM continued to implement its cost reduction plan, which delivered $96.5 million in savings over the quarter, above initial target.

CMA CGM also successfully deployed the operational agreements in partnership with MSC on the Asia/Northern Europe trades and with Maersk on the Asia/Mediterranean lines.

Despite these efforts, CMA CGM reported an EBITDA of $ -31 million and a net loss of $248 million for first-quarter 2012, which nevertheless represents one of the best financial and operating performances in the container shipping industry for the period.


Strong improvement expected in the second quarter

Since the end of the first quarter, the market has significantly rebounded with several successful freight rates increases. On the Asia/North Europe trade, for example, the benchmark Shanghai Containerized Freight Index (SCFI) stood at $1,666/teu as of 1 June, a 3.4-fold increase from $490/teu in December 2011. Similar gains have been observed on the other leading trade routes, particularly the Asia/Mediterranean, Asia/USA and Asia/Latin America lines.

Over the same period, oil prices have decreased significantly, with heavy fuel oil falling close to $560/ton in Rotterdam at the beginning of June, more than  20% below the March peak.

As a result, CMA CGM Group’s performance has improved sharply since the beginning of the second quarter. In particular, the Group reached breakeven in terms of operating profit in April and will pursue its cost reduction plan, which will result in $400 million in savings by year-end. The Group also expects to return to the black in 2012.

 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
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: 0.1505 sec (7 req/sec)