The French container shipping group CMA CGM reported a 2.9% increase in volumes during the first quarter, to 3.2 million TEU, beating the market which grew by 1.2% (source: Drewry), and focused on maintaining its core EBIT margin. The increase is mainly attributable to growth in the Transatlantic and Transpacific lines operating to and from the United States, which offset the decrease in volumes carried between Asia and Europe, where the Group had scaled back its capacity in response to weaker demand. Consolidated since 1 July 2015, OPDR also contributed to the increase in volume.
In an environment characterised by strong pressure on freight rates, average revenue per TEU fell 17.6%, a decrease that remains smaller than the average decline in the Group’s benchmark indices and reflects the ongoing imbalance between supply and demand.
CMA CGM’s revenue came in at USD 3.4 billion for the period, down as compared to first-quarter 2015 when the Group benefited from particularly favourable freight rates and volumes.
CMA CGM continued to implement its cost control policy, once again reducing its unit costs in the first three months of the year. This enabled the Group to achieve core EBIT of USD 3 million despite challenging conditions. The Group reported a net loss of USD 100 million in first-quarter 2016.
Rodolphe Saadé, Vice Chairman of CMA CGM, states: ”In a very difficult environment, we have in the first quarter recorded an increase in volumes above the market average, while maintaining a positive core EBIT margin. We will continue our strict financial discipline, including the implementation of a significant cost reduction plan. In addition, we are moving forward on our strategic projects, namely the proposed acquisition of NOL and the creation of a new operational alliance OCEAN with a launching anticipated in April 2017”.
|
|
Q1 – 2016 |
Q1 – 2015 |
Change |
| Revenue, in $ billions |
3.4 |
4.0 | -15.3% |
| Core EBIT*, in $ millions |
3 |
406 |
n.m |
| Core EBIT margin |
0.1% |
10.1% |
n.m |
| Consolidated net profit Group share, in $ millions |
(100) |
406 |
n.m |
| Return on invested capital |
4.1% |
13.4% |
-9.3ppt |
| Volumes carried, in TEU** millions |
3.2 |
3.1 |
+2.9% |
| Vessel fleet |
448 |
457 |
-9.0 |
| Fleet capacity, in TEU** millions |
1.812 |
1.699 |
+6.7% |
|
Gearing |
0.69 | 0.46 |
+0.23pt |
*Core EBIT before disposals and impairment charges
**TEU = twenty-foot equivalent units
