Worldwide container shipping company CMA CGM posted an 89% decreased in net income for the second quarter (Q2) of 2018, affected by rising costs of marine fuel.
The group recorded net income of USD $22.7 million in Q2 2018, significantly lower than net income of USD $213.0 million in Q2 2017.
Revenue in Q2 2018 was USD $5.7 billion, up 7.4% from revenue of USD $5.3 billion in Q2 2017.
In the second quarter of 2018, the volumes transported by CMA CGM increased by 9.6% to 5.19 million TEUs.
"Over the second quarter CMA CGM has recorded a core EBIT margin close to the first quarter as well as a positive net income in spite of a sharp increase in fuel prices,” said Rodolphe Saadé, Chairman and CEO of CMA CGM.
“The strong volume growth demonstrates our commercial strength and the quality of our service offering.”
Moving forward, CMA CGM says it intends to pursue cost reduction initiatives, centred around the optimisation of container fleet management and the improvement of energy efficiency, to improve its operational and financial performance.
CMA CGM’s Finnish subsidiary Containerships, a specialist in the intra-European market, is scheduled to take delivery of four liquefied natural gas (LNG) fuelled vessels with a 1,120 TEU capacity later this year.
On 3 May 2018, CMA CGM acquired a stake of approx. 25% in CEVA Logistics in the company's initial public offering.
“The acquisition of a 25% stake in CEVA is an important step in our strategy to complement our transport offering with logistics services,” says Saadé.
“We are confident for the second half of the year. We anticipate an improved operating margin thanks to the rise in freight rates and sustained volumes.”
Photo credit: CMA CGM
Published: 10 September, 2018
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