• Home
  • News
  • CMA CGM announces first quarter 2020 results
  • 2020 June 6 10:52

    CMA CGM announces first quarter 2020 results

    The Board of Directors of the CMA CGM Group, a world leader in shipping and logistics, met under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the first quarter of 2020.

    Upon the release of 2020 first quarter results, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented: “The good results of the first quarter demonstrate the strength and the resilience of the Group. During this unprecedented crisis, our customers have been able to rely on our agility, the expertise of our teams and the complementarity of our logistic and maritime offers, in order to ensure the continuity of their supply chains.

    Despite the uncertainty around global economy, we anticipate an improvement during the second quarter, thanks to our operational flexibility and our discipline in terms of cost control.

    The current situation reinforces our conviction that it is essential to develop better balanced economic exchanges, whilst respecting the environment. We have set Carbon neutrality by 2050 as our objective and we are ready to face future challenges.”

    Highlights for the first quarter of 2020

    The Group reacts and adapts to the COVID-19 health crisis

    The world economy and global trade flows have been severely impacted by the COVID-19 outbreak, through factory closures in Asia, followed by lockdown measures, particularly in Europe and North America. During the first quarter, CMA CGM saw only a limited decline in volumes of 4.6%, demonstrating the resilience of the shipping industry. The Group managed to promptly adapt its deployed capacity to the current environment while protecting the supply chains of its customers. The Group leveraged its expertise to maintain the transportation of essential goods, particularly medical products, by building logistical bridges.

    CEVA Logistics: the turnaround and transformation plan continues to make progress

    A new phase in CEVA Logistics' plan to return to profitability has been launched. The execution of this plan includes several actions, including revitalising business development, reducing costs, and modernising industrial assets and systems. The COVID-19 crisis has confirmed the relevance of our strategy consisting in offering complementary maritime transport and logistics services, namely CEVA Logistics' commercial offering, particularly in terms of air freight and warehousing.

    Disposal of a first portfolio of eight port terminals to Terminal Link for a cash amount of USD 815 million

    The sale of two additional terminals covered by the agreement between CMA CGM and China Merchants Port (CMP) should be closed by this Summer.

    The Group is doing its part to improve air quality, in full compliance with the International Maritime Organization Low Sulphur Regulation (IMO 2020)

    As of the 1st of January, 2020, the Group implemented a wide range of measures that were financed by the full application of dedicated tariff adjustments (Bunker Adjustment Factors).

    Group: Net profit Group share of USD 48 million

    During the first quarter of 2020, in the context of a slowdown in world trade and a decline in carried volumes, CMA CGM Group revenues amounted to USD 7.19 billion, slightly down compared to the same period last year. This contained decrease is achieved thanks to the diverse range of industries in which the Group’s customers operate, a balanced global presence, and the complementary nature of the Group's shipping and logistics activities.

    The Group's operating performance improved significantly. Adjusted EBITDA for the Group increased by 25% to USD 973 million, equating to a margin of 13.5%, up 3 percentage points relative to the first quarter of 2019.

    Net result Group share was positive at USD 48 million (an increase by USD 91 million compared to the first quarter of 2019 and USD 170 million compared to the fourth quarter of 2019). The result includes a USD 185 million gain from the disposal of terminals.

    Shipping: Strong increase in Adjusted EBITDA margin to 15.1%

    Shipping revenue declined by 3.3% compared to Q1 2019 to USD 5.52 billion. Volumes carried by CMA CGM decreased by 4.6% compared to the first quarter of 2019 due to the impact of COVID-19 and more specifically the shutdown of factories, particularly in Asia in February and March. Nevertheless, revenue per carried container improved slightly, due mainly to the application of fuel surcharges.

    Adjusted EBITDA (excluding gain from sales) increased sharply by 31.6% over the first quarter of 2019 and reached USD 836 million. Adjusted EBITDA margin increased by 4 percentage points to 15.1%. The performance reflects the full impact of the cost reduction plan implemented throughout 2019, and still continuing during the period. The Group's reactivity and flexibility enabled to quickly adapt the capacity of the fleet deployed in the challenging context of the COVID-19 outbreak.

    Logistics: CEVA Logistics shows resilience in a disrupted market

    CEVA Logistics’ revenue increased by 0.6% to USD 1.71 billion, due primarily to the consolidation of CMA CGM’s logistics activities in May 2019.

    The impact of the health crisis was partly offset by an increase in air charters, which ensured supply chain continuity for the Group's industrial clients as well as the supply of medical products.

    Adjusted EBITDA decreased by 4.9% to USD 137 million, representing adjusted EBITDA margin of 8%.

    Recent events and outlook

    The CMA CGM Group has been able to adapt to the unprecedented situation of a global pandemic by allowing its employees to continue their activities in safe conditions thanks to the required sanitary precautions. Fully focused on customer service, the Group has also developed a range of commercial and digital solutions to adapt and protect its clients’ supply chains. The CMA CGM Group intends to maintain a spirit of adaptation and innovation for the shipping and logistics of tomorrow with, in particular, the development of teleworking and the acceleration of digitalization in the industry.

    A bolstered liquidity position

    In these unprecedented economic and health conditions, the Group continues to proactively strengthen its cash position. A syndicated loan of EUR 1.05 billion was signed with a consortium of three banks (HSBC, BNP Paribas, and Société Générale). The loan has an initial one-year maturity and an extension option for up to five additional years. This loan, 70% guaranteed by the French State, is part of the scheme set up by the French government in response of the Covid-19 crisis and validated by the European Commission.

    Adaptation of deployed fleet and cost reduction

    The Group continues to adjust its capacity and logistical resources to meet the needs of its customers in order to preserve its profitability and protect its cash flows and its liquidity.

    Operating performance is expected to increase in the second quarter

    Lockdown measures taken even more in Q2 2020 in response to the spread of COVID-19 around the world are weighing on global consumption and increase uncertainties. The Group expects volumes to decline by about 10% over the first half of the year. Operating performance for the second quarter, however, should show significant improvement thanks to the industry's discipline and the Group's cost control policy.

    The Group pursues its strategy and reaffirms its pioneering role in the energy transition

    The CMA CGM Group intends to pursue and strengthen its strategy that relies around four major objectives:

    • Controlling every stage of the supply chain to offer end-to-end solutions to its customers.
    • Promoting the regionalisation of trade which accounts for a growing portion of the business.
    • Driving the digital transformation of shipping and logistics industry.
    • Accelerating the industry’s energy transition.

    In particular, the Group is strengthening its commitment in favour of more balanced and environmentally friendly global trade. At a United Nations conference held on June 2, 2020, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, announced the Group's target to be carbon neutral by 2050.

    Alternative fuels are expected to account for 10% of the Group's fuel consumption by 2023. 2020 will mark a major step with delivery of the first 23,000-TEU container ships powered by Liquified Natural Gas (LNG), allowing to reduce CO2 emissions by about 20% and eliminate nearly all sulphur and fine particle emissions.

    Thanks to its operational efficiency, financial discipline, and business agility, the CMA CGM Group is ready to face uncertainties related to the current environment.

    About CMA CGM

    Led by Rodolphe Saadé, the CMA CGM Group is a world leader in shipping and logistics.

    Its 489 vessels serve more than 420 ports on five continents around the world and carried nearly 22 million TEUs (twenty-foot equivalent units) in 2019. With CEVA Logistics, a world leader in logistics services, CMA CGM handles more than 500,000 tons of airfreight and 1.9 million tons of inland freight every year.

    CMA CGM is constantly innovating to offer customers new maritime, inland and logistics solutions.

2023 February 7

18:37 Gothenburg Port Authority CEO Elvir Dzanic to resign in August
18:07 TotalEnergies obtains two CO2 storage licenses in the Danish North Sea
18:01 Oil price cap does not apply to Russian petroleum product processed by being blended in a third country
17:43 ST Engineering acquires new site in Singapore for its commercial ship repair business
17:40 First section of Houston Ship Channel expansion complete
17:33 DNV to assess the viability of blending hydrogen into South Korea's gas transmission network
17:15 COSCO Shipping Heavy Industry (Guangdong) yard to retrofit the main engines aboard two LPG carriers from the fleet of Tianjin Southwest Maritime
16:47 Kalmar’s eco-efficient hybrid straddle carriers to enhance fleet productivity at DP World Antwerp Gateway
16:21 Emergency Arbitration claims initiated by Euronav fully dismissed
16:02 Onboard hydrogen fuel cell project wins EUR 15 mln funding
15:44 New Balearia innovative fast ferry will feature Wartsila propulsion solutions
15:14 Uniper and Greenko sign exclusivity for Green Ammonia offtake to EU from India’s first Green Ammonia Project in Kakinada
14:48 Italy’s Campostano Anchor updates its fleet with an eco-efficient Konecranes Gottwald Generation 6 Mobile Harbor Crane
14:24 Vopak and Port of Antwerp-Bruges to redevelop former Gunvor site
14:02 Jumbo Offshore completes the transportation and wet storage of a riser caisson for Technip FMC
13:42 Wilhelmsen Ship Management and Affinity Shipping team up to launch full EU emissions reporting and trading services
13:39 Monjasa and HOST PtX Esbjerg sign an agreement on logistics services and offtake of green ammonia for the maritime sector
13:12 Saudi yard IMI inks agreements worth $350m to enhance operations
12:31 Port Authority of Singapore receives award for engineering innovations for Tuas Port Phase 1 Reclamation Project
12:00 UK government invests £77 million in clean maritime technology
11:30 Hudong-Zhonghua secured 37 large size LNG carrier orders in 2022
11:04 World’s largest containership squeezes through Suez Canal
10:41 Cargotec names Casimir Lindholm as new President and CEO
10:39 Suez Canal Authority denies the published information on the contracting of a company to provide its services
10:24 Russian Railways’ freight volumes to the East exceeded those to the West for the first time
10:13 Over 2,000 foreign workers to be added to Korean shipyards this month - Pulse
09:59 NOVATEK and Deepak Fertilisers sign MoU on LNG and low-carbon ammonia
09:28 MRTS supports the 6th Hydraulic Engineering and Dredging Congress as its Sponsor

2023 February 6

20:51 Russian Railways CEO confirms plans on launching new traffic to Lavna port in December 2023
18:30 Portsmouth International Port to accept an offer from Scottish and Southern Energy Network to secure extra power supply
18:03 Freeport of Ventspils Ro-Ro cargo volumes up 4% to 2.35 million tonnes in 2022
17:28 The National Fund of Greece confirms eight investment schemes in the tender for the development of Volos Port
16:47 K Shipbuilding receives $175m order from Al Seer Marine for the construction of four tankers
16:24 Fuel oil shipments from Russia to India totalled at least 0.5 million tonnes in January 2023 - Reuters
16:14 RF Government expands programme to compensate expenses for transportation of goods to North-West ports
15:45 Earthquake damages Turkiye's energy infrastructure, major port
15:23 Astrakhan shipyard of USC to commence building dry bulk / container carriers of Project 00108 for North-South corridor in 2023
15:19 BSM managed Service Operation Vessel “Windea Leibniz” finished an extensive upgrade at Ulstein Shipyard in Norway
14:55 DP World container volumes up 1.4% to 79.0 million TEUs in 2022
14:35 IHC Dredging delivers Beagle 4 to Gebr. van der Lee
13:51 Rosmorport announces tender for dredging on Volga-Caspian Shipping Canal
12:49 INPEX Corporation completes ammonia bunker barge study - Ship & Bunker
12:37 Ba Ria-Vung Tau province ready to support foreign car carrier on fire
11:42 Equinor and SSE Renewables carry out early scoping work on potential 4th phase of Dogger Bank Wind Farm
11:39 OceanPal Inc. announces appointment of Robert Perri as CEO
11:24 Accelleron signs Turbo MarineCare agreement with Associated Maritime Company (Hong Kong)
11:23 Turkish shipyard to build two ferries for CMAL
10:08 NYK Line posts 9M and 2023 FY results
09:55 First serial production of hydrofoils to be established in Moscow Region
09:29 EU and G7 adopted further price caps for seaborne Russian petroleum products

2023 February 5

15:41 Stena Drilling sign a new contract with UK's Ithaca Energy for Stena Spey
13:19 New partnership aims to take Norwegian offshore wind to the next level
11:07 Hundreds evacuated after fire ignites on cruise ship in Sydney, Australia
09:38 Shell LNG bunker barge launched in Spain

2023 February 4

15:21 Milaha and Hareket sign a strategic alliance to provide integrated heavy lift and oversized transportation services
14:29 DOF awarded EPRD contract by Equinor
13:14 The Port of Sagunto doubles its natural gas traffic by 2022
11:03 GTT obtains funding from Bpifrance for the MerVent 2025 project, winner of the "Corimer 2022" call for expression of interest

2023 February 3

18:22 IAA PortNews’ summary of past week news
18:07 Port of Tallinn and Utilitas Wind to cooperate on the development of offshore wind farms