CMA CGM, the third largest container liner company in the world, said Friday that it had a net profit of $94 million in the second quarter of 2014. The result is down from $268 million in the same period last year, but the company noted $248 million of that profit was linked to the sale of a 49-percent stake in its port terminal operations subsidiary Terminal Link. Core earnings before interest and tax were $204 million in the second quarter of 2014, up 18.7 percent from $172 million in the second quarter of 2013.
Revenue in the second quarter this year was a record $4.2 billion, 3.7-percent higher than the $4.05 billion reported in the second quarter of 2013. That reflected an 8 percent increase in volumes handled; the company had volume of 3.1 million TEU in the second quarter of this year, compared to 2.9 million TEU in the second quarter of 2013.
CMA CGM said average revenue per TEU decreased by 3.9 percent over the period. However, the company said, "Freight rates remained volatile overall,
with the usual high level of volumes at this time of the year helping
drive current rate increases. On this basis, CMA CGM expects its
third-quarter operating performance to be sustained."
In the second quarter, "sustained growth in volumes was mainly attributable to the development of the group’s Asia-Europe and Africa lines, and of the Asia-Pacific lines of its subsidiary ANL, reflecting CMA CGM’s enhanced services portfolio in these regions," it said. ANL was formerly Australian National Line, which CMA CGM acquired in 1998.
CMA CGM said it had reduced costs per TEU by 4.8 percent, with fuel cost per TEU falling 9.3 percent, "thanks to the combined effect of lower bunker consumption per unit and more moderate bunker prices."
CMA CGM said it put in service the 9,400-TEU containership CMA CGM Danube
in a string between Asia and the Black Sea. The ship, which is being chartered from China's CIMC, is the first of a series of 28 ships from 9,400 to 10,900 TEU which will be delivered from now to the third quarter of 2016. The second two ships are expected to be delivered in coming weeks, said CMA CGM.
The company noted it is expanding its port terminal operation, having:
- Signed a partnership agreement with the Indian company Adani to develop a new terminal in Mundra, India
- Begun bilateral negotiations as part of a project to develop a terminal in Kingston, Jamaica, following the acceptance of the proposal by local authorities. The terminal is to become CMA CGM’s transhipment hub for the Caribbean
- Announced a plan to make Reunion Island its transhipment hub for the Indian Ocean following the completion of work to expand Port Reunion