The revenues of container operator CMA CGM decreased by 14.6% yoy in second quarter of 2016, amounting to 3.5 billion USD. Excluding the contribution of Singapore’s Neptune Orient Lines and its operator APL, the quarter revenues are amounting to 3.3 billion USD. During the reported period, the container operator CMA CGM posted net loss of 128 million USD, mostly due to sharp decrease of freight rates, reduced volumes and integration of APL. Excluding the contribution from NOL, the CMA CGM’s net loss in Q2 2016 stood at 109 million USD. The EBIT of the company during the reported period amounted to 81 million USD.
“We are experiencing a market environment that remains difficult, with excessively low freight rates weighing on our revenue and margins. In an environment shaped by a lack of visibility, CMA CGM has the advantage of a strong liquidity position”, said the CMA CGM Group Vice-Chairman, Rodolphe Saade. “The strategic relevance of NOL, fully financed, is reinforced. We are working to improve operating performance, notably via the launch of the Agility plan, which includes a programme to reduce costs by 1 billion USD over the next 18 months, and in addition to the post-acquisition synergies with NOL”, added he.
The transported volumes of CMA CGM rose slightly on the North-South lines, but declined on the East-West lines. The total volumes carried for the period amounted to 3.5 million TEU. The average revenue per TEU fell by 18.8% yoy, putting the revenues and profit of the company under pressure.
CMA CGM is a French container transportation and shipping company. It is the third largest container company in the world, using 170 shipping routes between 400 ports in 150 different countries. Its headquarters are in Marseille, and its North American headquarters are in Norfolk, Virginia, USA. The fleet of the company amounts to 471 vessels and 2.2 million TEU.