CMA CGM revenue stood at USD 19.9 billion in the third quarter of 2022, driven mainly by the Group’s maritime shipping business.
EBITDA came to USD 9.15 billion, representing an EBITDA margin of 46%.
The Group continued strengthening its balance sheet, supported by its operating performance. Net debt totalled USD 78 million as of Sept. 30, 2022 (after accounting for current financial investments), down USD 5.3 billion from June 30, 2022.
“The CMA CGM Group once again recorded strong results in the third quarter. Over the past two years, we have significantly strengthened our financial structure and developed our business through the entire supply chain. Declining demand has prompted a return to more normal international trade flows and a significant reduction in freight rates. In this new environment, we will continue to invest to strengthen our positioning in maritime shipping and logistics, accelerate our energy transition and provide our clients with even more efficient solutions”, said Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group.
The third quarter of 2022 was shaped by persistent geopolitical tensions, which spurred higher inflation and dragged down consumer spending, which is increasingly shifting to services in the wake of COVID-19. These factors dampened freight demand and helped ease a certain amount of port congestion.
The Group was also impacted by the unstable geopolitical situation, specifically the increase in unit bunker costs driven by higher energy prices. On a like-for-like fuel consumption basis, these higher energy prices led to a year-over-year increase of USD 822 million in bunker costs in the third quarter of 2022. As a result, the slowdown in shipping demand pushed down spot freight rates, particularly on main East-West routes.
Mergers & Acquisitions
The acquisition of GEFCO was approved in July 2022, which was crucial in maintaining production line integrity across the European automotive industry. In addition, thanks to several other acquisitions completed since the beginning of the year, CMA CGM has strengthened the capabilities of the Group’s subsidiary CEVA Logistics by integrating expertise and skills in e-commerce, last-mile delivery and automotive logistics, adding more than 12,000 employees.
The Group owns equity stakes in 50 port terminals in 33 countries. Its port operations are strategically designed to support its shipping lines’ growth and enhance the quality of its customer services.
In the third quarter of 2022, CMA CGM strengthened its investment portfolio by winning the tender for the privatization of the Nhava Sheva terminal in India in association with its partner J M Baxi. Signed on July 29, the concession agreement will support business development on the west coast of India while upgrading and expanding a 700-meter-long container terminal berth at the Jawaharlal Nehru Port to deliver enhanced capacity and quality of service.
Transported volumes stood at 5.7 million TEUs in the third quarter of 2022, up 4.1% year-over-year.
Maritime shipping revenue amounted to USD 15.7 billion, up 25.8% year-over-year but down 2% compared to the previous quarter. This reflects the decline in spot freight rates that began in the second quarter and continued into the third quarter.
EBITDA stood at USD 8.65 billion in the third quarter. The year-over-year increase in EBITDA margin was supported by an average revenue of USD 2,771 per TEU. Quarterly EBITDA was down 5% from the previous quarter.
To meet the energy transition challenges, the CMA CGM Group is pursuing its strategy of upgrading and increasing fleet sustainability. It added two new 15,000-TEU, e-methane ready, dual-fuel container ships during the third quarter, the CMA CGM Galapagos and the CMA CGM Greenland, both French-flagged.
CMA CGM Air Cargo, CMA CGM Group’s air freight carrier, continues to expand with the recent launch of a new Paris-Hong Kong service following the delivery of its first two Boeing 777 freighters. Currently composed of six aircraft, the CMA CGM Air Cargo fleet will consist of 12 freighters by 2026.
The CMA CGM Group is committed to achieving Net Zero Carbon by 2050 and intends to accelerate the energy transition in shipping and logistics, led by an enhanced energy mix.
In September, the CMA CGM Group announced the creation of a Fund for Energies, backed by a five-year, €1.5bn budget, to accelerate its energy transition and achieve Net Zero Carbon emissions by 2050. The Fund is dedicated to increasing the pace of decarbonization across the Group’s worldwide ocean, ground and air freight shipping activity and logistics business.
The Fund for Energies will support the development of renewable energies in industrial-scale production (biofuels, biomethane, e-methane, green methanol, etc.). At the same time, it will accelerate the decarbonization of port terminals, warehouses and land vehicle fleets.
The Fund follows on from projects that have already been identified and launched:
As part of the Fund for Energies, a €200m budget will be dedicated in early 2023 through a call for projects capable of supporting decarbonization across the entire French shipping and port industry.
Source: CMA CGM