The board of French-based CMA CGM, the world’s third largest container shipping group, has just issued its financial statements for the year ended December 31, 2011.
According to chairman, Jacques R. Saadé, the group’s revenue was US$14.87-billion for the year, a 4% increase on 2010.
Volumes carried increased by 11%, outperforming the market’s 6.5% increase and reaching a record high of 10 016 000 TEUs.
The market environment was challenging, said Saade, shaped by overcapacity and the steep run-up in oil prices, with per-tonne bunker prices soaring 34% over the year.
EBITDA (profit before various deductions) stood at US$711-m, down from 2010, a year in which the entire container shipping industry reported record profits. The group ended the year with a consolidated net loss of US$30-m.
CMA CGM continued to assertively dispose of non-strategic assets during the year. It also strengthened its balance sheet by issuing US$500-m in ORA - French acronym for bonds redeemable for shares - equity notes to the Yildirim Group and raising an aggregate US$945-m through two bond issues denominated in dollars and euros.
In its outlook for 2012, the group said that, although the beginning of the year was difficult for the entire industry, freight rates are now trending upwards, especially outbound Asia. Several shippers, including CMA CGM, have introduced significant rate increases as from March 1.
To enhance its operating performance, the group plans to continue implementing operating partnerships with MSC on the Asia/North Europe and South America lines and with Maersk on the Asia/Mediterranean, Adriatic and Black Sea trades. It will deploy increasingly efficient, modern and cost-effective vessels on every trade; and develop more innovative, high-quality information technology services thanks to the new strategic partnership with IBM.
