FRENCH shipping giant CMA CGM has turned a profit in 2017, partly due to its acquisition of APL in mid-2016, and expects volumes to continue to hold strong this year.
The carrier reported a net income of US$701 million in 2017 compared with a $452 million loss it reported in 2016. Revenues for 2017 totalled $21.12 billion, up 32.1 per cent from $15.98 billion in 2016.
Core earnings before interest and taxes (excluding asset sales and depreciation and non-recurring elements) in 2017 stood at $1.6 billion, compared to just $29 million in 2016.
In addition, 2017 was the first full year to reflect CMA CGM's acquisition of APL, which was completed in mid-2016. The French carrier said APL's services contributed $340 million to its operating income (or EBIT), as well as 5 million TEU to its container volumes handled in 2017.
Collectively, CMA CGM carried 18.95 million TEU in 2017, 21 per cent more than the 15.64 million TEU carried the year before.
'The momentum of the volumes transported in 2017 is expected to continue in 2018,' the company said.
'The group should continue to benefit from this trend, thanks to its worldwide presence and its portfolio of brands covering the East-West, North-South and intra-regional trades.'
The company's freight rates rose last year and it saw the average revenue per TEU rise 9 per cent when compared to 2016, reports American Shipper.