CMA CGM Enjoyed 11% Volume Growth, $323 Million Net Profit in Q3

Damas Jati - 27/11/2017, 11:30

French Shipping company CMA CGM, the world’s third-largest container shipping group, enjoyed a significant growth in volume it handling in third quarter (Q3) 2017, supporting its high rise in revenue and net profit.


The company’s report released Friday last week said that its volume reached 4.98 million TEU, up 11.6% year on year, from 4.46 million TEU in July-September 2016.


Its revenue rose 27.7% year-on-year, to US$5.7 billion, from US$4.47 billion in Q3 2016.


It posted a third-quarter net profit of $323 million, up from $219 million in the previous quarter of Q2 (April-June) and from a $268 million loss in Q3 2016.


This quarterly rise, according to the company, was helped by improving freight rates after a prolonged sector downturn that sparked large-scale consolidation. In addition to the healthier freight rates, the company said it also benefited from participation in a global vessel alliance to boost volumes.


The company’s core operating margin rose to 10 percent, which it said was the highest in the sector and surpassed the previous quarter’s 8.9 percent.


Sales reached $5.7 billion, up nearly 27.7% percent from a year earlier, supported by an 11.6% increase in volumes and 14.4 % rise in average revenue per container.


For the full year, CMA CGM said it expects its operating performance to show a strong improvement from 2016 but did not give precise targets.


CMA CGM, which is based in the southern French port city of Marseille, said the Ocean Alliance — a vessel-sharing partnership with other lines — had helped to boost volumes on Asia-U.S. and Asia-Europe routes.


The group has also been strengthened by its takeover last year of the Singapore-based APL line and it recently ordered nine new giant ships.


CMA CGM  Performance Q3 2017


* Core EBIT excluding asset sales and depreciation and non-recurring elements


** TEU = Twenty-foot Equivalent Unit


*** On 30 September