News Content
CMA CGM Q3 net profit dives 76 per cent as revenue fall 9pc with weak rates
FRENCH container ship operator CMA CGM said that its net profit plunged 76 per cent year on year in the third quarter from US$201 million to $51 million as revenue slumped 9 per cent from US$4.4 billion to US$3.97 billion, marked by sharp fall in freight rates and overcapacity in certain markets.
However, volume shipped by the carrier rose 3.4 per cent to 3.3 million TEU 20-foot-equivalent units in the same period. The third-largest global carrier said its per-unit costs fell 10.7 per cent on lower bunker fuel prices.
"The container shipping sector is facing lower-than-expected volume growth, putting pressure on freight rates for many lines in the short term," the Marseille-based company said in a statement.
In the first nine months of this year, net profit rose 56 percent year-over-year to $613 million, even as revenue slipped 3.3 percent to $12.1 billion on lower freight rates. CMA CGM handled 6.5 per cent more volume, at 9.7 million TEU, in the first three-quarters compared to the same period in 2014.
"The Group's performance over the first nine months of 2015 demonstrated its ability to deliver long-term profitable growth and confirmed the strength of its business model," the shipping line said.
Looking ahead, CMA CGM said freight rates are expected to remain weak in the fourth quarter. However, it said it would continue to make various capacity adjustments in order to maintain satisfactory load rates and optimise the use of vessels.
"Leveraging its business model based on a global presence, commercial dynamism and operating discipline, the CMA GGM group should continue to outperform the industry average going forward".
However, volume shipped by the carrier rose 3.4 per cent to 3.3 million TEU 20-foot-equivalent units in the same period. The third-largest global carrier said its per-unit costs fell 10.7 per cent on lower bunker fuel prices.
"The container shipping sector is facing lower-than-expected volume growth, putting pressure on freight rates for many lines in the short term," the Marseille-based company said in a statement.
In the first nine months of this year, net profit rose 56 percent year-over-year to $613 million, even as revenue slipped 3.3 percent to $12.1 billion on lower freight rates. CMA CGM handled 6.5 per cent more volume, at 9.7 million TEU, in the first three-quarters compared to the same period in 2014.
"The Group's performance over the first nine months of 2015 demonstrated its ability to deliver long-term profitable growth and confirmed the strength of its business model," the shipping line said.
Looking ahead, CMA CGM said freight rates are expected to remain weak in the fourth quarter. However, it said it would continue to make various capacity adjustments in order to maintain satisfactory load rates and optimise the use of vessels.
"Leveraging its business model based on a global presence, commercial dynamism and operating discipline, the CMA GGM group should continue to outperform the industry average going forward".
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
