• 2020 November 21 11:38

    Third quarter 2020 business activity strong CMA CGM Group operating performance

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

    Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented: “In a favorable market environment for our industry, the Group reported very strong financial and operating performances due to the full commitment of its teams. Our shipping activity has seen a significant increase in volumes transported compared to the second quarter of 2020, and CEVA's transformation plan starts to bear fruit. This crisis has also demonstrated the solidity of our business model and demonstrated the relevance of our strategy, combining logistics solutions with transport offering. In a context of strong demand for the coming months, we will continue to respond with agility to the needs of our customers.”

    Business activities and financial performance of the third quarter of 2020

    The CMA CGM Group demonstrates strength and agility in an unprecedented global context

    The third quarter business activities saw a marked recovery in demand for transportation of goods, following the scaling back triggered by the Covid-19 pandemic during the first half of the year. In response to this recovery, the CMA CGM Group stepped up the redeployment of operated capacities during the third quarter, once again demonstrating the agility of its business model and the commitment of its employees.

    This increase in volumes transported was due to:

    • the pick-up in global economic activity following the easing of various lockdown measures;
    • the strong momentum in terms of the consumption of goods to the detriment of services activities, encouraged in some locations by support packages;
    • strong e-commerce growth with inventory rebuilding;
    • the usual seasonal variation in business activity in preparation for both the September and Christmas peak consumption periods in western countries.

    Strong financial indicators for the Group

    During the third quarter of 2020, the CMA CGM Group showed great responsiveness to support recovery in the sector. The health crisis has confirmed the relevance of the Group's strategy in terms of the complementarity between logistics solutions and maritime transport.

    Group revenue was up by more than 6% during the third quarter of 2020 compared with the third quarter of 2019, reaching a level of USD 8.1 billion.

     

     

     

     

     

    During the third quarter of 2020, the CMA CGM Group reports yet another solid improvement in Net Income Group share, with profits of USD 567 million, compared with USD 45 million during the third quarter of 2019 and USD 136 million during the second quarter of 2020.

    The Group’s operating performance generated an operating cash flow in excess of USD 1.8 billion, i.e. USD 814 million more than during the third quarter of 2019. The Group’s liquidity stood at USD 2.8 billion on September 30, 2020.

    Shipping: strong EBITDA growth of +76%

     

     

     

     

    Volumes carried during the third quarter of 2020 continued to recover and were up 16.8% compared with the second quarter of 2020. Volumes were also up 1% compared with the third quarter of 2019. Revenue for the quarter increased by 6.3% compared with the third quarter of 2019, totaling USD 6.3 billion for shipping, thanks to average revenue per TEU (twenty-foot equivalent unit) of USD 1,120, up 5.2% year-on-year, in particular on Transpacific trade lanes.

    Shipping EBITDA grew by an impressive 76% during the third quarter of 2020 to USD 1.5 billion (versus USD 870 million during the third quarter of 2019). Unit cost by TEU was down -6.8% compared with the third quarter of 2019, at USD 845 due to the combined impact of declining oil prices and the Group’s cost-cutting initiatives, notably in transportation and intermodal services. As a result, the Group has seen a strong 205.7% increase in its operating margin to USD 978 million.

    Logistics: a transformation plan which is bearing fruit



     

     

     

     

    CEVA Logistics continues to recover and is on course with its transformation plan. The effects observed in the second quarter of 2020 continued and improved during the third quarter.

    The revenues of the Group's logistics subsidiary stood at USD 1.9 billion in the third quarter, up 7.9% from the third quarter of 2019. EBITDA stood at USD 167 million, up 18.4% from the third quarter of 2019, and up from the second quarter of 2020 (USD 153 million).

    This performance was mainly supported by the turnaround in contractual logistics activities (warehousing solutions and related services) following the reopening of sites closed in the second quarter due to the health crisis. Airfreight momentum also remained strong with favorable margins despite the significant reduction in air traffic.

    The operating margin recovered from USD 12 million in the third quarter of 2019 to USD 39 million in the third quarter of 2020. Finally, the contribution of CEVA Logistics to net income Group share stood at USD 1 million compared to - USD 44 million in 2019.


    Highlights for the third quarter of 2020

    Liquefied Natural Gas, a pioneering choice for a new generation of container ships

    On September 22, the CMA CGM JACQUES SAADE joined the fleet. The Group's new flagship is the world's largest container ship powered by liquefied natural gas (LNG). The CMA CGM Group is firmly committed to the energy transition in maritime transport and is rolling out a plan aimed at providing the Group with a fleet of 26 LNG-powered ships by 2022. Liquified gas is an energy of the future, which preserves air quality by removing 99% of sulfur oxides, 91% of particulate matters and 92% of nitrogen oxide emissions. It enables the reduction of CO2 emissions by up to 20% compared with standard fuel oil engines.


    Development of expertise in air freight

    Building on its strategic development in logistics, the CMA CGM Group intends to increase its expertise in air freight. The CMA CGM Group has therefore signed a memorandum of understanding for the acquisition of a 30% stake in Groupe DUBREUIL Aéro (France's leading private airline group, owner of the airlines Air Caraïbes and French Bee). This transaction is subject to review by the competition authorities.

    Outlook

    Strengthening of the Group's financial structure

    In October, the Group went ahead and issued bonds worth EUR 525 million and prepaid its outstanding bonds due to mature in 2021.

    In addition, and in line with its debt reduction strategy, the CMA CGM Group will prepay USD 750 million of various debts in the coming weeks. These include the NOL (now CMA CGM Asia Pacific Limited) notes due to mature in 2021.

    Both rating agencies S&P and Moody's have adopted a favorable outlook on CMA CGM's debt rating (B + and B2 respectively).

     

     

    Ongoing momentum in world trade and earnings outlook

    During the fourth quarter, maritime activity is more sustained than during the third quarter due to the ongoing increase in volumes. This momentum is particularly marked in the United States and Latin America and allows the fleet to continue operating at full capacity as during the third quarter. As a result, freight rates remain high.

    In this favorable environment and thanks to the ongoing control of unit costs, the Group should see a further improvement in the EBITDA margin in the fourth quarter.

    About CMA CGM

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

    Its 538 vessels serve more than 420 ports around the world, on all five continents. In 2019, they transported nearly 22 million TEU (twenty-foot equivalent units) containers. 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.

    Present on every continent and in 160 countries through its network of 755 offices and 750 warehouses, the Group employs more than 110,000 people worldwide, of which 2,400 in Marseille where its head office is located.




2021 May 14

13:34 Nevsky Shipyard delivers cargo-passenger vessel of Project PV22, Pavel Leonov, to the customer
12:25 Throughput of port Kavkaz in 4M’2021 fell by 15% Y-o-Y
12:03 Austal Australia delivers two cape-class patrol boats to Trinidad and Tobago Coast Guard
11:58 Port of Oakland sets all-time cargo record in April 2021
11:49 Daphne Technology seeks financing through crowdfunding platform
11:28 Throughput of Russian seaports in 4M’2021 fell by 4.2% Y-o-Y
11:09 Rosmorport commences dredging at the port of Arkhangelsk
10:46 Rosmorport announces competition on dam strengthening at Kaliningrad Maritime Channel
10:17 HCS and CyberLogitec partner in TOS implementation at finished-car logistics terminal in Yarimca, Turkey
10:13 Acceptance certificate signed for Phase 1 (preparation) of Bagayevsky hydrosystem
09:45 Oil prices decrease on demand concerns
09:28 Höegh Autoliners onboard more vessels to Kongsberg Digital’s Vessel Insight
09:12 Baltic Dry Index as of May 13
08:24 Port of Ayr completes £2.2m investment strategy with new crane delivery

2021 May 13

18:41 DFDS ferry volumes up 50% in April 2021
18:13 Sealand adds weekly Port of Wilmington call to its NAE service
17:54 Sparta III delivered yet another cargo to Franz Josef Land
17:37 COP26 in focus as UNGC gathers leaders at Nor-Shipping’s Ocean Now
17:30 Oboronlogistics took part in BREAKBULK RUSSIA 2021
17:02 Admiral Makarov University took part in ARCSAR workgroup
16:28 IAPH renews ties with WCO
16:05 VoltH2 and Virya Energy sign cooperation agreement for development of green hydrogen plant in North Sea Port
15:37 12th Arctic Council Ministerial meeting convenes in Reykjavík
15:13 Bunker Weekly Outlook, Week 19, 2021
15:04 Klaveness joins collaboration project to evaluate the potential role of carbon capture in meeting shipping’s near-zero emissions target
14:52 Wärtsilä Cargo Handling and Fuel Supply Systems again selected for Oriental Energy vessels
14:32 Capital Link Maritime Forum - Norway to take place on 26-27 May 2021 as digital event
13:48 Cargo traffic within Azov-Don Basin of Russia’s IWWs grew fell by 26% in 4M’21
12:46 Shell Marine expands shipcare network, offering customers greater convenience and smoother operations
12:29 Small anti-submarine ships of White Sea naval base commence training maneuvers at sea
12:00 Mitsubishi Shipbuilding holds christening and launch ceremony in Shimonoseki for large ferry built for Meimon Taiyo Ferry
11:50 Singapore and Rotterdam successfully complete trial with electronic bill of lading
11:37 Bunker sales at Vladivostok port in 4M’2021 fell by 26% YoY
11:09 Port of Long Beach container volumes up by 43.6% to 746,188 TEU in April 2020
10:42 TSUNEISHI SHIPBUILDING collects actual operation data by IoS-OP
10:33 RF Government approves new composition of its Marine Board
10:09 Bureau Veritas partners with North Sea Energy program
09:44 Damen launches RoPax 6716 for the Port Authority of Timor-Leste
09:41 Oil market sees downward price correction
09:24 Baltic Dry Index as of May 12
09:08 RINA certifies the improvement of the energy efficiency of Grimaldi ro-ro fleet
08:45 UN launches the Human Rights Due Diligence Tool for seafarers

2021 May 12

18:36 Rolls-Royce to supply mtu generator sets for U.S. Navy frigate program
18:06 COSCO SHIPPING Ports successfully launches green finance framework
17:54 Severnaya Zvezda shipped second batch of equipment for Taimyr coal cluster facilities
17:36 High demand sees Teesport Bulks Terminal sign third major deal in eight months
17:16 Port of Antwerp and the City of Antwerp kick off The Tall Ships Races 2022
16:53 Valenciaport exceeds one million export containers for the first time in a year
16:25 Port of Rotterdam, Vopak, NYK and TankMatch to launch the first barge-to-ship methanol bunkering operation in the world
16:21 Candela C-7 and Persico 69F race shows how future electric boats will look like – Candela
16:13 Finland influences shipping emissions trading
16:04 ClassNK entrusted by Anchor Ship Partners with the evaluation of CO2 emissions of ships for its impact investment fund
15:55 TORM purchases three 2015-built scrubber-fitted LR2 vessels
15:49 Finnish Government adopts resolution to reduce emissions from maritime and inland waterway transport
15:07 Tallink Grupp launches its 2021 summer cruise sales
14:44 Tallink Silja launches summer cruises to Österlen and Gotland
14:21 AS Tallink Grupp published its statistics for April 2021
14:00 Seanergy announces delivery of Capesize M/V Flagship vessel to enter financing and period charter agreement with Cargill
13:58 First cargo from Egypt to reach Lithuanian LNG terminal
13:35 Small vessel service segment successfully developed in the Port of Riga