CMA CGM Enjoyed 6.3% Revenue Increase in Q3, to USD6.06 Billion

Damas Jati - Jakarta, 28/11/2018, 11:37

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French shipping company CMA CGM - the world’s third biggest shipping line, booked USD 6.06 billion revenue in third quarter (Q3) 2018, a 6.3% increase from USS5.70 billion in Q32017, thanks to the volume increase it handled during the period and the appropriate partnership strategy with some logistics companies.


In the third quarter, according to the company press release, volumes shipped by CMA CGM recorded a growth of +5.5% compared to the 3rd quarter of 2017. Over the period, CMA CGM exceeded 5 million containers shipped. This increase is attributable to the strength of most of the trades, particularly the Transpacific, India/Oceania and Africa lines.


Revenue per container in the third quarter of 2018 increased slightly compared to the third quarter of 2017 (0.8%), as well as compared to the second quarter of 2018 (+4.9%).


Consequently, revenue in the third quarter of 2018 rose by +6.3% to USD 6.06 billion.


Unit costs rose by +7.7% (+USD 77 per TEU), mainly due to the market price of fuel, resulting in an increase of USD 55 per TEU compared to the third quarter of 2017. This was only partially offset by the introduction of an Emergency Bunker Surcharge.


CMA CGM posted third-quarter 2018 operating income of USD 241 million, representing a core EBIT margin of 4.0%, as compared to 1.2% in the previous quarter. This confirms the performance improvement announced last September for the second half of the year.


This performance is the result of the Group's ability to leverage its size and global network to maximize its revenues, despite the rise in fuel price.


The Group’s share of consolidated net income amounts to USD 103.1 million in the third quarter, up from USD 22.7 million in the previous quarter.


Commending such positive performance, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group said: "In a context of sharply rising fuel prices, CMA CGM core EBIT margin recorded a significant increase compared to the second quarter of 2018, at 4.0%. In a market growing by 2.5% to 3%, the increase in volumes shipped by CMA CGM demonstrates our commercial drive and the quality of service offered to our customers.”


“We continue to pursue the development of the CMA CGM Group,” he said further.


According to Rodolphe, in addition to volume increase, CMA CGM was also benefited from the strategy it took in the last year.


By strengthening the partnership with CEVA, CMA CGM is actively engaging its logistics strategy. Our ambitious development project for CEVA was approved by its Board of Directors. Subject to approval from the regulatory authorities, this project will accelerate CEVA’s transformation, making it a more efficient logistics leader, to the benefit of its customers, employees and shareholders. Via a takeover bid, we hope to obtain the majority of CEVA's share capital and unleash its full potential.”












Q3 - 2017 Group

Q3 - 2018 Group

Variation

Revenue in USD billions

5.70

6.06

+6.3%

Operating income* in USD millions

568

241

(57.5)%

Core EBIT margin

10.4%

4.0%

(6.4) pts

Net Income Group share in USD millions

323.3

103.1

(68.1)%

ROIC (return on invested capital)

10.4%

4.6%

(5.8) pts

Volumes carried in TEU** millions

4.98

5.26

+5.5%

Vessel fleet

489

506

+3.5%

Fleet capacity in TEU** millions

2.50

2.69

+7.5%

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

** Twenty-Foot Equivalent Unit (TEU)

*** On 30 September


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