CMA CGM Reports Q2 Operating Performance
Thursday, August 29, 2013

The Board of Directors of France’s CMA CGM container shipping group met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the second quarter 2013.

In the second quarter, consolidated revenue amounted to $4 billion, up 5.6% over the first quarter and down 2.4% year-on-year. The year-on-year decline reflected a 6.9% increase in volumes carried, to 2.9 million TEUs, even as the Group’s average freight rate shrank 8.6% over the period, amid an even sharper contraction in the industry as a whole.

During the period, CMA CGM reported $418 million in consolidated EBIT, up 7% year-on-year. Excluding non-recurring items (of which the Terminal Link divestment), core EBIT stood at $172 million; a 4.2% EBIT margin before non-recurring items, one of the highest in the industry and $268 million in consolidated net profit (of which $249 million related to the reorganisation of the port operations, including the disposal of Terminal Link), versus a profit of $169 million in second-quarter 2012.

CMA CGM also continued to strengthen its balance sheet by sharply reducing net debt to $3.8 billion at June 30 , a decrease of $385 million since March 31, and substantially increasing its equity to $4.8 billion, by $363 million over the quarter.

Significant events during the quarter
CMA CGM closed the purchase of $150 million in mandatory convertible bonds by Fonds Stratégique d’Investissement (FSI) and completed the sale of a 49% stake in Terminal Link to China Merchants Holdings International.

In addition, CMA CGM, Maersk Line and MSC Mediterranean Shipping Company S.A. decided to create the P3 Network, an operational alliance on East-West trades designed to optimise fleet use on these lines. The agreement, which remains subject to the approval of various competition authorities, is expected to come into effect in Q2 2014.

Outlook for 2013
In the third quarter, CMA CGM will benefit of an improved operating performance resulting from on-going cost discipline and higher freight rates.

In today’s still volatile operating environment, the Group confirms that, thanks to its strong fundamentals and strategy, it expects to report for 2013 a profit commensurate with its 2012 performance.

Financial highlights

Q2-2012    Q2-2013        H1-2012    H1-2013    % Change
(in $ billions)    4.1    4.0        7.8    7.9    +1.7%
(in $ millions)    392    418        288    614    +113%
Adjusted EBIT*                                    
(in $ millions)    380    172        281    367    +30.6%
Consolidated net profit                          
(in $ millions)    169    268        (79)    364    N/A
Return on invested capital***    14.0%    14.4%        14.0%    14.4%    +2.7%
Volumes carried                                   
(in TEU** millions)    2.7    2.9        5.3    5.6    +4.9%

People & Company News

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies


Indian Warships Visit Port Victoria

In a demonstration of India’s commitment to its ties with Seychelles and maritime security in the Indian Ocean Region, Indian Naval Ships Kolkata, Trikand and

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

Shenzhen Port to Adopt China ECA Regulation

China's Shenzhen port is set to to adopt requirements for ships at berth requiring to burn marine fuel with sulfur content not exceeding 0.5 percent starting October this year,


SOS from Hanjin Shipping

The creditors' extended help is crucial for survival of Hanjin Shipping Co as its negotiations with owners of chartered ships over a cut in leasing rates and to

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Container Ships

Maersk Line's Innovative Smart Reefers

Have you heard about Maersk Line's smart reefers that can listen and talk? Cutting edge technology that reduces risk in customer supply chain, claims Maersk Line.

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Hapag-Lloyd: UASC Merger Benefits to show in 2017

German container shipping line Hapag-Lloyd expects to reap a third of targeted annual synergies of $400 million from the planned merger with Arab rival UASC already next year,


Coast Guard Foundation Awarded 128 Scholarships

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of all Coast Guard members and their families, announced today that

Keppel to Deliver First North Sea FPSO

Keppel Offshore & Marine (Keppel O&M)'s wholly-owned subsidiary Keppel Shipyard Ltd (Keppel Shipyard) is on track to deliver a Floating Production Storage and Offloading

NASA May Send Submarine to Titan

NASA has unveiled plans to send a submarine into the depths of the largest ocean of Saturn's biggest moon, Titan in a bid to explore the depths of its largest ocean.


C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Damen Trading Sale hits 500th Vessel

30 years and 500 vessels later, Damen Trading is just getting started. Damen Trading’s story begins in 1986, with Damen Shipyards Group responding to growing market demand for used vessels.

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Simulators
rss | archive | history | articles | privacy | 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: 0.2675 sec (4 req/sec)