CMA CGM returns to profit
But discussions with investors continue as French carrier looks to cover debts
CMA CGM returned to profit in the first six months of the year, following an increase in both volumes carried and freight rates.
However, the improved results have not halted discussions with investors as the carrier seeks to cover debts totalling US$5.3 billion.
Revenue for the period amounted to $6.8 billion, up 41% over the first-half of 2009, and freight volumes increased nearly 22% year-on-year to 4.4 million teu.
The carrier said its earnings before interest, tax, depreciation and amortisation (ebitda) was $1.1bn, compared with a $568m ebitda loss in the first six months last year.
Its operating margin of 15.5% for the first half and 18.8% for the second quarter was one of the shipping industry’s highest, it said.
The carrier said: “These results reflect the group’s strategic decisions to invest in large containerships and to deploy a cost-reduction plan.
“Other contributing factors were the upturn in the global economy, which drove an increase in both volumes carried and freight rates, and the strong commitment of all the group’s teams.”
However, the group remained cautious in its forecast: “Nevertheless, competition remains sustained in a still uneven global economy. In the second half, the group will continue to reduce costs, in order to optimise its business model and consolidate its growth on a reinforced financial bases.
“In this regards, CMA CGM is pursuing its discussions with investors with the objective to reinforce its equity.”
It said its second quarter performance is expected to continue over the third quarter and its year-end trends remain positive.
The carrier is continuing to expand its fleet after taking delivery of six newbuildings in July and August. These included two 13,800 teu vessels and two 11,400teu vessels.
However, the improved results have not halted discussions with investors as the carrier seeks to cover debts totalling US$5.3 billion.
Revenue for the period amounted to $6.8 billion, up 41% over the first-half of 2009, and freight volumes increased nearly 22% year-on-year to 4.4 million teu.
The carrier said its earnings before interest, tax, depreciation and amortisation (ebitda) was $1.1bn, compared with a $568m ebitda loss in the first six months last year.
Its operating margin of 15.5% for the first half and 18.8% for the second quarter was one of the shipping industry’s highest, it said.
The carrier said: “These results reflect the group’s strategic decisions to invest in large containerships and to deploy a cost-reduction plan.
“Other contributing factors were the upturn in the global economy, which drove an increase in both volumes carried and freight rates, and the strong commitment of all the group’s teams.”
However, the group remained cautious in its forecast: “Nevertheless, competition remains sustained in a still uneven global economy. In the second half, the group will continue to reduce costs, in order to optimise its business model and consolidate its growth on a reinforced financial bases.
“In this regards, CMA CGM is pursuing its discussions with investors with the objective to reinforce its equity.”
It said its second quarter performance is expected to continue over the third quarter and its year-end trends remain positive.
The carrier is continuing to expand its fleet after taking delivery of six newbuildings in July and August. These included two 13,800 teu vessels and two 11,400teu vessels.
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