CMA CGM Recovers from Major Loss with USD 86 Mn Q1 Profit

Image Courtesy: POLB

French shipping giant CMA CGM reported a consolidated net income of USD 86 million in the first quarter of 2017, the company informed.

The results represent a significant rebound from a net loss of USD 100 million posted in the first quarter of 2016 pushed down by pressured freight rates.

During the quarter, volumes carried marked a strong increase of 34.2 percent in comparison to Q1 2016, thanks to the integration of APL. According to CMA CGM, for the first time and less than a year after its acquisition, APL has contributed positively to the group’s results.

Specifically, it achieved a gross operating income of USD 56 million, or a 4.4 percent core EBIT margin, which was ascribed to the combined benefit of higher revenue per unit and cost control. Its net result was a profit of USD 26 million.

“This result demonstrates the group’s operational efficiency and expertise, and positions CMA CGM in the first place for operational performance among the leading industry players,” the container carrier said.

The group’s consolidated revenues were up by 35.9 percent in comparison with Q1 2016, standing at USD 4.6 billion. As explained, the increase of average revenue per container carried led overall revenue to rise faster than volumes.

CMA CGM reported a core EBIT margin of 5.5 percent to USD 252 million, against 0.1 percent core EBIT margin from Q1 2016, as well as an increase of 1.3 points in comparison to Q4 2016.

“In the current shipping context, which is still affected by insufficient freight rates, CMA CGM has continued its positive trend begun end 2016, with further improvement in operating margins and net income,” Rodolphe Saadé, CEO of CMA CGM Group, said.

“Although the shipping industry still faces strong headwinds, we are confident our strategy should allow to improve operational results over the next quarter, leveraging the new OCEAN ALLIANCE and maintaining our focus in operational efficiency and innovation to the benefit of our customers. We continue to reinforce our position as a leading player in our industry.”

Moving ahead, the company said it was targeting a further improvement in its core EBIT margin, thanks to the continued improvement in freight rates.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

DSM17

Donsö Shipping Meet 2017 is an all inclusive exhibition. Meals, electricity, meeting schedule and banquette dinner is included…

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference.

With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and technology solution providers. Get in-depth and detailed market insights from experts who are taking the decisions, assess peer strategies and give shape to your own in this unrivalled gathering of shipping and marine fuel industry leaders.

Key Highlights for 2017:

* 3 Co-located Conferences

* 12+ Hours of Networking Time

* In-depth Review of Shipping Markets by Segment

* Ship Owner Positions on Emissions Compliance Scenarios

* Pricing Differentials and Availability across Different Fuels

* Technology and Analytics in Fuel Management and Emissions MRV

More info

read more >