CMA CGM Records Mixed Q3 Results

MarineLink.com
Friday, November 22, 2013
CMA CGM Marco Polo (Photo: CMA CGM)

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

During the period, consolidated revenue amounted to $4.1 billion, up 1.4% over the second quarter and down 2.1% year-on-year. Volumes carried rose by 11% year-on-year to 3 million twenty-foot equivalent units (TEUs), a new historical record for the Group. The average revenue per TEU declined by 11.8% year on year, when Asia-Northern Europe market  rates, as measured by the SCFI, contracted by more than 45% over the quarter.

This performance in terms of volumes and price resistance illustrates CMA CGM’s resilience in a market that remains extremely volatile. The group is evidencing the benefits derived from its size and global presence, which are enabling it to diversify its activities by geography, customer category and service solution, particularly in its onshore operations.

During the third quarter, CMA CGM reported

  • $238 million in consolidated EBIT, versus $541 million in the third-quarter 2012. Excluding non-recurring items, core EBIT stood at $271 million for the period.
  • A 6.6% EBIT margin before non-recurring items, one of the highest in the industry.
  • $70 million in consolidated net profit for the period, bringing the total to $434 million for the first nine months of the year.

Business in the third quarter contributed to maintaining consolidated cash and cash equivalents at nearly $1.1 billion. Net debt amounted to $3.7 billion as of September 30, for a gearing ratio of 0.77.

Significant events during the quarter

As part of their future P3 operational alliance, CMA CGM, Maersk Line and MSC Mediterranean Shipping Company SA finalized their operating agreements on the Asia-Europe, Transatlantic and Transpacific trades. As announced, subject to the approval by the various regulatory authorities, these services will be deployed in second-quarter 2014.

CMA CGM has signed a strategic contract with SAP to implement a new information system dedicated to container shipping that will be deployed starting late 2015. This investment will enable the Group to improve its operating performance.

Outlook for 2013
To further strengthen the Group’s liquidity position, an additional $200 million securitization program was set up in October 2013.

Lastly, Moody’s has upgraded the Group’s rating to B2 with a stable outlook.

Given the usual year-end seasonal variations and currently prevailing freight rates, performance in the final three months of the year will likely see a decline compared with the third quarter 2013.
 


People & Company News

MN100: All American Marine, Inc.

The Company: All American Marine Inc. was founded in 1987 and specializes in the construction of custom tailored aluminum boats from 30 to 150 feet LOA. Today,

Five Minutes with Paul Switzer

Five minutes with Paul Switzer - Manager, Shipbuilding & Offshore, Viega   For readers not familiar with Viega, please give a ‘birds eye’ view, putting the company

MN100: Reintjes GmbH

The Company: Founded in 1979, Reintjes GmbH is an independent propulsion technology company that manufactures thousands of gearboxes annually. More than 90,000

Finance

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Container Ships

APL Strengthens Asia-Europe Service Network

APL today announced the launch of a new weekly service - the India Pakistan Europe (IPE) Service, directly connecting the key South Asian markets of India and Pakistan to major ports in Europe.

BG Freight Line Orders Four Containerships

BG Freight Line, a fully owned subsidiary of Peel Ports Group, is to receive new tailor-made short sea container feeder vessels optimized for the company’s Irish Sea Hub services.

Mobile Crane for ICTSI Congo

Matadi Gateway Terminal (MGT), the new container and general cargo terminal on the Congo River, DR Congo, has received the first of two new mobile cranes scheduled to go into service at the terminal.

Logistics

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Portland Auto Exports Drive ConnectOregon Grant

The Oregon Department of Transportation has awarded a ConnectOregon grant of $2.6 million to the Port of Portland along with tenant Auto Warehousing Co. to fund

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Electronics Sonar Winch
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: 0.1199 sec (8 req/sec)