CMA CGM posts 10.5% growth in container volume in Q1
French carrier CMA CGM, one of the world's largest container shipping companies, posted a 10.5 percent growth in container volume to 3.1 million TEUs in the first quarter of 2015.
In a statement, Jacques R. Saadé, CMA CGM chairman and chief executive Officer, attributed the growth to the increase in volumes on the East-West lines, particularly to and from the US, where volumes enjoyed sustained growth, and also from the launch of the Ocean Three Alliance.
The group continued to actively optimize its lines, opening five new routes in the US and extending its agency network up to 655 agencies in over 160 countries as consolidated revenue of CMA CGM rose by 1.8% to $4.013 billion.
The group reaped the rewards of its operating efficiency and cost discipline as well as the sharp drop in bunker prices. Bunker costs per TEU down 36.5%. Core earnings before income tax (EBIT) margin leapt to $406 million, representing 10.1% of revenue, once again significantly above peers’ average.
Consolidated net profit was up sharply on first-quarter 2014 at $406 million as CMA CGM continued to roll out its balanced financial strategy over the first quarter, aimed at strengthening its financial flexibility while pursuing controlled expansion to deliver further growth.
Adjusted net debt fell by 10.3%, chiefly due to the favorable impact of the US dollar-Euro exchange rate and to the increase in the group's cash available. Consolidated adjusted net debt now represents less than half consolidated adjusted equity.
On March 31, 2015, CMA CGM took delivery of CMA CGM Kerguelen, its first 17,722 TEU vessel designed to be used on Asia-Europe lines. Another five similarsized vessels will also be delivered this year, along with 6 vessels with a capacity of 9,400 TEU and three vessels with a capacity of 2,100 TEUs.
The CMA CGM fleet will be further strengthened in 2016-2017 following confirmation of its acquisition of three 20,600TEU vessels to be delivered in 2017.
The company noted that spot freight rates for Asia-Europe lines have been rather volatile since the Chinese New Year as volumes remain sluggish. Lines to and from the US continue to perform well.
The group has obtained the 30-year concession for the container terminal in Kingston, Jamaica. Its logistics subsidiary CMA CBM LOG has recently acquired LCL Logistix, a logistics leader in India, enabling it to accelerate its development in this fast-growing market. On May 11, CMA CGM LOG signed an agreement under which it will manage a logistics platform in Cuba. (EHL)