First-quarter 2015 results: CMA CGM continues to develop and delivers an increase in net profit
19 May 2015 12:22 Economy
- Volumes up 10.5%
- A rise in net profit up to $406 million
- Further reduction in net debt and upgrade of Moody's rating
Q1 - 2015
Q1 - 2014
Revenue, in $ millions
Core EBIT*, in $ millions
Core EBIT margin
Consolidated net profit, in $ millions
Return on invested capital
Volumes carried, in TEU** millions
Fleet capacity, in TEU** millions
* Core EBIT before disposals and impairment charges
** TEU = twenty-foot equivalent units
*** At 31 December 2014
The Board of Directors of France's CMA CGM, one of the world's largest container shipping companies, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the first quarter of 2015.
Volumes rose 10.5% in the period to 3.1 million TEU. This rise chiefly results from the increase in volumes on the East-West lines, particularly to and from the US, where volumes enjoyed sustained growth, and also from the launch of the Ocean Three Alliance.
The Group continued to actively optimise its lines, opening five new routes in the US and extending its agency network up to 655 agencies in over 160 countries.
Consolidated revenue for CMA CGM was up 1.8% to $4.013 billion.
The Group reaped the rewards of its operating efficiency and cost discipline as well as the sharp drop in bunker prices (bunker costs per TEU down 36.5%). Core EBIT margin leapt to $406 million, representing 10.1% of revenue, once again significantly above peers’ average.
Consolidated net profit was up sharply on first-quarter 2014, at $406 million.
CMA CGM continued to roll out its balanced financial strategy over the first quarter, aimed at strengthening its financial flexibility while pursuing controlled expansion to deliver further growth. Adjusted net debt fell by 10.3%, chiefly due to the favourable impact of the $/€ exchange rate and to the increase in the Group's cash available. Consolidated adjusted net debt now represents less than half consolidated adjusted equity.
This balanced financial strategy was recently recognized by Moody's, which raised the Group's credit rating to B1 with a stable outlook.
On 31 March 2015, CMA CGM took delivery of CMA CGM Kerguelen, its first 17,722 TEU vessel designed to be used on Asia-Europe lines. Another five similar-sized vessels will also be delivered this year, along with 6 vessels with a capacity of 9,400 TEU and three vessels with a capacity of 2,100 TEU.
- The CMA CGM fleet will be further strengthened in 2016/2017 following confirmation of its acquisition of three 20,600-TEU vessels to be delivered in 2017.
- Spot freight rates for Asia-Europe lines have been rather volatile since the Chinese New Year; volumes remain sluggish however. Lines to and from the US continue to perform well. In view of the diverse nature of its lines and customer portfolio, the impact of these factors on CMA CGM in the immediate term should be limited.
- The Group obtained the 30-year concession for the container terminal in Kingston (Jamaica).
- CMA CGM LOG, the Group's logistics subsidiary, continues its expansion. On 30 April, the subsidiary announced that it had acquired LCL Logistix, a logistics leader in India, enabling it to accelerate its development in this fast-growing market. On 11 May, CMA CGM LOG signed an agreement under which it will manage a logistics platform in Cuba.
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