CMA CGM reported net loss of 268 million USD in Q3 2016

CMA CGMThe container shipping operator CMA CGM reported net loss of 268 million USD in Q3 2016, due to low freight rates and depression on the container shipping market. Excluding the costs related to the acquisition of NOL, the loss during the reported period amounted to 202 million USD. The acquisition of the Singaporean operator for 2.4 billion USD was concluded in June and seriously affected the finance statement of the company. However, the main losses of the container shipping operator are due to decrease in traffic volumes and low profitability. The average revenue per unit, excluding NOL, has declined in the reporting period by 13.9% yoy, but improving by 3.8% compared to Q2 2016. However, the traffic volumes for the quarter declined by 2.7% to 3.2 million TEU (excluding NOL). The total revenues of CMA CGM, excluding NOL, decrease of 16% yoy to 3.33 billion USD.

Including the newly acquired Singaporean operator NOL, the volumes totaled 4.5 million TEU, an increase of nearly 36%. As a result, total revenue increased by 16% yoy to 4.47 billion USD.

The results of the CMA CGM is a reflection of the ongoing crisis in the ocean container shipping market. The negative dynamics can be traced in a number of other carriers reports published earlier.

CMA CGM is the third largest container carrier by capacity, using 170 shipping routes between 400 ports in 150 different countries. Before acquisition of NOL, the company operated a fleet of 471 vessels, 2,244,509 container TEUs and 185,000 reefer containers.