CMA CGM recorded a year-over-year drop in core EBIT of 65.1% in Q1 of 2017 to $88m. This was impacted by rising oil prices. It managed to increase volumes by 15.0% in the quarter and revenue was up 17.1%.
CMA CGM said its unit bunker costs were up 17% in the quarter. It announced the implementation of Emergency Bunker Recovery Measures to offset the rise in fuel prices not already factored into freight rates.
Strong volume increases were attributed to the OCEAN alliance offering, as well as strong growth in Africa-US and North America-South America lines and the integration of Mercosul into the group. Total group revenues for the quarter totalled $5.41bn.
The group said it expected the market to see strong volume growth throughout 2018. CMA CGM expects an improvement in the market environment in the second half of 2018, excluding bunker costs and the impact of exchange rates. Emergency Bunker Recovery Measures and cost reduction initiatives are expected to bear fruit in the second half of 2018.
Source: CMA CGM
