Freight News, Sea

CMA CGM Continues to Show Strong and Profitable Growth

[ September 3, 2015   //   Gary G Burrows ]

News coming from CMA CGM shows strong and profitable growth during Second Quarter 2015. Figures released August 31 showed that volumes carried during the second quarter increased by 6.2% year-on-year, to 3.3 million TEUs, compared to global market volume growth of between 1% and 2%. Average revenue per container carried decreased by 7.8%.

CMA CGM officials state that this decrease, however, was significantly less than benchmark indices for the period due to the broad diversity of the Group’s customers and lines.

More financials:  Unit costs fell 10.9%, largely due to the sharp fall in oil prices;   Core EBIT surged 59.3% compared to the second quarter of 2014 to $325 million, as the Group’s lower unit costs outpaced the decline in average revenue per container carried.

The core EBIT margin of 7.9% was once again significantly above peer averages.

Consolidated net profit group Share came to $156 million, up 66.7% on second-quarter 2014.

During the first half of 2015, volumes carried were up 8.2% to 6.4 million TEUs, revenue was stable at $8.1 billion and net profit almost tripled to $562 million.

CMA CGM further strengthened its financial position, with adjusted net debt representing less than 50% of consolidated equity as of 30 June 2015.

In May 2015, Moody’s upgraded the Group’s credit rating to B1 with a positive outlook.

In June 2015, CMA CGM extended the maturity of its debt with the issuance of a €725 million bond maturing in 2021. This issuance allowed CMA CGM to refinance in anticipation the outstanding bonds maturing in 2017 and 2019.

Tags: CMA CGM