CMA CGM Quadruples Quarterly Net Profit
- Business & Finance
French CMA CGM, the world’s third largest container line, recorded a 419 percent increase in net profit and a 10.5 percent increase in volumes handled in the first quarter of 2015.
The line ended the first quarter of 2015 with USD 406 million of consolidated net profit, a sharp increase compared to a USD 97 million net profit recorded for the same period a year earlier.
CMA CGM handled 3.1 million TEUs during the given period, and the rise was attributed to 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 container line also opened five new routes in the US during the period, as well as extended its agency network to up to 655 agencies in over 160 countries.
The company’s consolidated revenue was up 1.8 percent, reaching USD 4.013 billion, due to increased operating efficiency, as well as a sharp drop in bunker prices, which fell 36.5 percent per TEU.
Adjusted net debt fell by 10.3%, chiefly due to the favourable impact of the USD/EUR exchange rate and to the increase in the company’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 line’s credit rating to B1 with a stable outlook.
The company’s fleet capacity increased by 13.4 percent to 1,769,000 TEUs, with further five 17,722 TEU, six 9,400 TEU and three 2,100 TEU boxships expected to be delivered this year.