CMA CGM reports Q3 2014 results
The Board of Directors of CMA CGM Group, the world’s third largest container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the third quarter of 2014, the company said in its press release.
During the third quarter of 2014, as the market experienced the customary peak-season:
Consolidated revenue amounted to USD 4.4 billion: a 6.4% increase compared with the 3rd quarter of 2013.
Volumes carried increased by 8.3 % to 3.2 million of Twenty-foot Equivalent Units (“TEUs”).
Average revenue TEU decreased by 1.8% over the period.
Carried volumes have reached their highest level over the Group’s history thanks to the lines deployed in high-growth areas and to the strength of the services offered on the main markets.
This growth stems in particular from:
Asia-Europe where steady growth has been recorded.
Intra-Asia and Oceania: in these areas, the Group operates through expert subsidiaries such as ANL or CNC, complementary to CMA CGM.
Africa: CMA CGM has continued the development of its maritime and intermodal activities on this continent. The Group has expanded its service offering and has opened new land corridors, under the CMA CGM or the DELMAS brands.
Reefer transport: CMA CGM has a strong expertise on this high-growth transport segment. The Group recently purchased 7,000 new reefer containers and targets to carry one million reefers in 2015.
CMA CGM has also continued its operational cost control policy. Operating costs per TEU have declined slightly (-0.4%). Bunker consumption per TEU has fallen by 3.4 % versus third quarter of 2013. This decrease mainly results from higher vessel filling factors and continued energy efficiency efforts.
In this respect, CMA CGM initiated an optimisation programme for its owned fleet in 2013, including the modification of bulbous bows. This change, implemented in dry dock, optimises the vessel design to the speeds operated under “slow-steaming”. Modifications have already been made to fifteen vessels and ten additional ones are planned. This innovation results in fuel and CO2 emission savings in excess of 5% per voyage.
In the second quarter of 2014, the core operating margin thus amounted to 5.7 %: one of the strongest in the industry.
The net income (Group share) amounted to USD 201 million in the 3rd quarter of 2014, compared with a net income of USD 70 million in the 3rd quarter of 2013.
This high operational performance reinforces the financial structure of the Group, which boasts high available cash, an adjusted net debt which has significantly decreased (-15.8%) and a gearing of 0.61.
Over the first nine months 2014, the Group’s turnover, amounts to USD 12.5 billion, a 4.3 % increase with respect to the same period in 2013. The carried volumes amount to TEUs 9.1 million: a 7.4 % increase. The core operating margin is stable: USD 638 million over the first 9 months of 2014.
