CMA CGM reports Q3 2015 results

CMA CGM announced Q3 results for 2015 with revenues of $3.98bn representing a decline of 9.0% year-on-year. The company also recorded EBIT (Earnings Before Interest, Taxes) of $158m for the same period, a decline of 36.5%. Consequently, CMA CGM’s margin stood at 4.0%, down from 5.7% for the same quarter in the previous year.

CMA CGM stated the sea freight market is currently experiencing a sharp fall in freight rates and overcapacity in certain segments which has had a negative impact on the revenue figures reported for the quarter. The company highlighted that freight rates were especially weak on certain lines, including Asia-Europe although other lines, such as transpacific routes, continued to benefit from a better balance between supply and demand with CMA CGM adjusting its capacity accordingly.

The company stated that the container shipping sector is facing lower than expected volume growth, which it claims is putting pressure on freight rates for many lines in the short term. Freight rates are expected to remain weak through the fourth-quarter 2015. According to the announcement, CMA CGM expects the market to rebalance during 2016.

In Q3 volumes carried increased by 3.4% to 3.3m TEUs, helping to stem the 8.95% decline in the group’s revenue to $3.98bn. There was a further fall in unit costs over the period, down 10.7% on the back of the decline in bunker prices. Despite this, CMA CGM reported core EBIT of $158m and a core EBIT margin of 4% over the quarter.

During the third quarter, the group took delivery of two 18,000 TEU vessels, CMA CGM Bougainville and CMA CGM Zheng He, bringing its 18,000 TEU fleet up to five vessels. A sixth such vessel is expected to join the fleet in the fourth quarter. CMA CGM also took delivery of three 2,100 TEU Guyane Max vessels.

The acquired Intra-European shipping company Oldenburg-Portugiesische Danpfshiffs-Rhederei (OPDR) was consolidated by the Group with effect from July 1. In addition, CMA CGM continued to increase its presence in Africa, opening new agencies and developing new ground transport solutions. In August 2015, the company was awarded the bid for the 25-year Kribi Container Terminal concession in Cameroon.

Currently, the company is in exclusive negotiations to acquire Singapore shipping operator NOL.