The French ocean carrier recorded a net income of $219 million on revenues of $5.55 billion for the second quarter of 2017, with volumes rising 33.3 percent year-over-year.
CMA CGM’s volumes for the second quarter of 2017 totaled 4.73 million TEUs, up 33.3 percent from the second quarter of 2016.
CMA CGM recorded a net income of $219 million for the second quarter of 2017, compared to a net loss of $129 million for last year’s second quarter, the French ocean carrier revealed Friday.
Revenues for the quarter totaled $5.55 billion, increasing 56.8 percent year-over-year, thanks in large part to the acquisiiton of Singapore-based container carrier APL. But CMA CGM said the majority of the company’s lines also experienced an increase in freight rates, resulting in a 12.5 percent year-over-year increase in average revenues per container for the quarter.
Volumes for the quarter reached 4.73 million TEUs, up 33.3 percent from the second quarter of 2016. CMA CGM attributed the volumes increase to the integration of APL, the launch of the OCEAN Alliance on April 1, and “industry dynamism.” In addition to CMA CGM, the OCEAN Alliance includes APL, COSCO, OOCL and Evergreen Line.
It was definitely a very notable quarter for CMA CGM, as the carrier confirmed in its earnings release an order for up to nine containerships of 22,000 TEUs – six firm orders with an option for three more – slated for delivery from the end of 2019.
And in addition to the launching of the OCEAN Alliance, CMA CGM and Adani signed a joint venture agreement in April to jointly operate the new container terminal at the Port of Mundra.
Then in June, CMA CGM signed a binding agreement with the world’s largest ocean carrier Maersk Line to acquire Brazilian cabotage specialist Mercosul Line.
“The acquisition of Mercosul will allow CMA CGM to strengthen its service offering to and from South America, most notably in Brazil, especially on cabotage and ‘door-to-door’ services,” CMA CGM said Friday. “This proposed acquisition of Mercosul is accompanied by a new service offering between South America, Northern Europe and the Mediterranean.”
CMA CGM also signed a binding agreement in June for the sale of a 90 percent equity interest in Global Gateway South Terminal in Los Angeles to EQT Infrastructure III for $817 million, to be paid at closing. The transaction is expected to close by the end of 2017, CMA CGM said Friday.
Looking past the second quarter, in July, CMA CGM issued a new 650 million euro (U.S. $777.2 million) bond issue in order to refinance other bonds maturities. The company also concluded an agreement with its core banking partners for a new revolving credit facility of $205 million.
CMA CGM also confirmed in its earnings release an order for up to nine containerships of 22,000 TEUs – six firm orders with an option for three more – slated for delivery from the end of 2019.
Looking ahead, CMA CGM said, “Given the recent trend in freight rates, and excluding a significant change in fuel prices and exchange rates, CMA CGM expects to continue to improve its operating results in the second semester compared to the first semester.”
