CMA CGM Enjoyed 32% Revenue Growth, 21% Volume Increase

Damas Jati - ., 20/03/2018, 10:51


French leading shipping company and the world’s 3rd biggest shipping line, enjoyed a positive growth in 2017, both in volume it handled and revenue it created.

The corporate reported it carried nearly 19 million containers, a strong increase of +21.1% compared to 2016. This increase is driven by the contributions of all the shipping lines operated by the Group in addition to APL’s full-year contribution.

This strong momentum is notably linked to:The quality of the OCEAN ALLIANCE service offering, particularly appreciated by our customers. Launched on 1 April 2017, it covers 40 shipping  services on the East-West trades and  the Transpacific market, where the CMA CGM and APL brands are particularly strong.

Thanks to the increase in freight rates, confirmed throughout 2017, the average revenue per TEU rose by +9% compared to 2016. Fourth quarter revenues were up 19.9% compared to the same quarter last year and stood at USD 5.5 billion.

Therefore, the annual revenue for 2017 rose by a very strong +32.1% and surpassed the USD 20 billion mark for the first time, reaching USD 21.1 billion.

In the last quarter, the operational result stood at USD 282 million. The core EBIT margin reached 5.2%, up by 1 point compared to the fourth quarter of 2016.

In 2017, CMA CGM core EBIT reached USD 1.575 billion with a core EBIT margin of 7.5%, up +7.3 points compared to the previous year. CMA CGM thereby recorded the best operating result in the container shipping industry.

In addition to the rise in average revenue per TEU transported, the control of unit costs which rose slightly by 1.6%, despite the sharp rise in fuel prices (+42% compared to 2016) enable this particularly strong result. This once again illustrates the expertise and discipline of the operational management implemented all year long.

Consolidated net income group share for the year 2017 amounts to USD 701 million, a sharp increase compared to 2016 (loss of USD 452 million).

Upon the publication of its 2017 annual results, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, commented: “The Group has recorded an excellent performance in 2017, showing once again the relevance of its strategy and its operational discipline. Quarter after quarter, CMA CGM demonstrates its ability to outperform its peers and these annual results confirm our Group’s position as a leading player in the container shipping industry.”

“In 2017, we launched several strategic projects fostering our development for the years to come, notably in the digitization of our industry,” he said 

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