FRENCH shipping giant CMA CGM suffered a sharp decline in second quarter net profit year on year to US$22 million from $213.7 million posted last year. This year's profit was drawn on revenues of $5.7 billion, an increase of 7.4 per cent.
The decline in net profit was blamed on a 27.7 per cent year-on-year increase in fuel costs while rising revenue was attributed to a 9.6 per cent increase in cargo volume.
'Over the second quarter CMA CGM recorded a positive net income in spite of a sharp increase in fuel prices,' said chairman and CEO Rodolphe Saade.
'The strong volume growth demonstrates our commercial strength and the quality of our service offering,' he said.
'The acquisition of a 25 per cent stake in CEVA is an important step in our strategy to complement our transport offering with logistics services,' said Mr Saade.
'We are confident for the second half of the year, and anticipate an improved operating margin thanks to the rise in freight rates and sustained volumes.'
Progress was due to the strength of the transpacific and Asia/Gulf lines within OCEAN Alliance, as well as lines from and to South America, said a statement accompanying the results,
Revenue per box fell 2.1 per cent in the second quarter of 2018 in comparison with the second quarter last year.
The group intends to pursue the cost reduction initiatives announced upon the release of its first quarter results to improve its operational and financial performance.
The group expanded its fleet in the second quarter with the delivery of the CMA CGM Jean Mermoz, a 20,600-TEU ship to operate on the Asia-Europe trades. It also took delivery of another ice-class vessel, whose reinforced hulls will enable it to operate on the Baltic routes.
Marseilles-based CMA CGM said it was confident in the second half of the year and anticipates an improvement thanks to the recent rise in freight rates and sustained of volumes.
CMA CGM Group has 509 ships serving more than 420 ports worldwide. In 2017, they transported nearly 19 million TEU. It is present in 160 countries through its network of 755 branches and employs 30,000 people worldwide.
The decline in net profit was blamed on a 27.7 per cent year-on-year increase in fuel costs while rising revenue was attributed to a 9.6 per cent increase in cargo volume.
'Over the second quarter CMA CGM recorded a positive net income in spite of a sharp increase in fuel prices,' said chairman and CEO Rodolphe Saade.
'The strong volume growth demonstrates our commercial strength and the quality of our service offering,' he said.
'The acquisition of a 25 per cent stake in CEVA is an important step in our strategy to complement our transport offering with logistics services,' said Mr Saade.
'We are confident for the second half of the year, and anticipate an improved operating margin thanks to the rise in freight rates and sustained volumes.'
Progress was due to the strength of the transpacific and Asia/Gulf lines within OCEAN Alliance, as well as lines from and to South America, said a statement accompanying the results,
Revenue per box fell 2.1 per cent in the second quarter of 2018 in comparison with the second quarter last year.
The group intends to pursue the cost reduction initiatives announced upon the release of its first quarter results to improve its operational and financial performance.
The group expanded its fleet in the second quarter with the delivery of the CMA CGM Jean Mermoz, a 20,600-TEU ship to operate on the Asia-Europe trades. It also took delivery of another ice-class vessel, whose reinforced hulls will enable it to operate on the Baltic routes.
Marseilles-based CMA CGM said it was confident in the second half of the year and anticipates an improvement thanks to the recent rise in freight rates and sustained of volumes.
CMA CGM Group has 509 ships serving more than 420 ports worldwide. In 2017, they transported nearly 19 million TEU. It is present in 160 countries through its network of 755 branches and employs 30,000 people worldwide.