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CMA CGM Group net income sharply up; to operate 44 LNG-powered vessels by end of 2024

08 Jun 2021

Worldwide shipping and logistics company CMA CGM Group on Friday (4 June) posted a sharp increase in net income for the first quarter (Q1) of 2021 due to an increase in demand for consumer goods.

It recorded net income of USD 2.078 billion in Q1 2021, significantly higher than net income of USD 48 million in the similar period last year.

First-quarter revenue stood at USD 10.7 billion, up 49.2% from the first quarter 2020, which was impacted by a slowdown in international trade due to lockdown measures, particularly in China.

Notably, the Group said it will be operating a fleet of 44 LNG-powered vessels by the end of 2024.

“LNG is currently the best and most readily available solution for reducing shipping’s environmental footprint and preserving air quality, which is a major public health concern,” it states.

“It reduces sulfur oxide emissions by 99%, particulate matter emissions by 91%, and nitrogen oxide emissions by 92%, far exceeding current local and international regulations.

“LNG also represents an initial response in the fight against global warming. This technology is one of the first steps towards achieving the objective of carbon neutrality that the CMA CGM Group has set itself for 2050.”

In April 2021, the Group ordered 22 new vessels to be delivered between 2023 and 2024:

  • six 13,000-TEU vessels powered by liquefied natural gas (LNG);
  • six 15,000-TEU vessels powered by LNG;
  • ten 5,000-TEU vessels powered by very low sulfur fuel oil (VLSFO).

The Group also confirmed it would be deploying six new LNG-powered 15,000-TEU vessels between China and the U.S. West Coast by the end of 2022. The first vessel will join the Group’s fleet in October 2021.

The current environment should allow the Group to achieve at least the same results in the second quarter of 2021, as it did in the first.

“The sustained demand for the shipping of consumer goods seen since the summer of 2020 is expected to continue in the second half of 2021,” it said.

“The Group will continue to invest in strengthening and upgrading its shipping and logistics assets while bolstering its financial structure.

“As part of its commitment to customers around the world, the Group will continue to deploy solutions to support their business activity and ensure the continuity of their supply chains.”

CMA CGM in early April launched the first low-carbon biomethane-based shipping solution as part of its trajectory toward carbon neutrality by 2050.

The Group is supporting the production of 12,000 tonnes of biomethane (equivalent to the consumption of  two LNG-powered 1,400 TEU vessels for a year), a renewable green gas produced from, among other things, organic and plant waste from European farms and that is used at methane conversion plants.

Along with the dual-fuel gas engine technology currently used in LNG vessels, the Guarantee-of-Origin biomethane solution reduces well-to-wake (i.e. whole life cycle) greenhouse gas emissions (including CO2 emissions) by 67%.

Related: CMA CGM: Biomethane bunker fuel option to reduce CO2 emissions by at least 67%
Related: CMA CGM biomethane bunker fuel option reduces GHG emissions for clients

 

Photo credit: CMA CGM
Published: 21 May, 2021

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