CMA-CGM, the world's third largest container shipping company, said Thursday it had a consolidated net profit of $268 million in the second quarter, up from $169 million in the same 2012 period.
It said $249 million of that profit was related to the reorganization of its port operations, including the disposal in June of a 49 percent stake in Terminal Link to China Merchants Holdings International.
Revenue was $4 billion in the quarter, down 5.6 percent from the the same 2012 period.
The company had $418 million in EBIT (earnings before interest and taxes), up 7 percent from $392 million in the second quarter of 2012. Excluding non-recurring items, such as the Terminal Link divestment, adjusted EBIT was $172 million in the second quarter of this year compared with $380 million in the second quarter of 2012.
The French company said the year-on-year decline in revenue reflected the fact its average freight rate shrank 8.6 percent in the second quarter when compared to the same period last year even as volumes increased 6.9 percent to 2.9 million TEUs compared with 2.7 million TEUs in the second quarter of 2012.
The liner carrier said it strengthened its balance sheet by reducing net debt to $3.8 billion by June 30, a decrease of $385 million since March 31. Equity was increased by $363 million to $4.8 billion during the quarter.
CMA CGM sold $150 million in mandatory convertible
bonds to Fonds Stratégique d’Investissement, a French government investment fund.
In the third quarter, CMA CGM said it will have "improved operating performance resulting from on-going cost discipline and higher freight rates."
"In today’s still volatile operating environment, the group confirms that, thanks to its strong fundamentals and strategy, it expects to report for 2013 a profit commensurate with its 2012 performance," CMA CGM said.
In 2012, the company had a profit of $361 million. In th first half of 2013 it has net profit of $364 million.
CMA CGM noted during the quarter it agreed to form the P3 Network, an alliance with Maersk and Mediterranean Shipping Co. in the Asia-Europe, transatlantic and transpacific trades. It said the agreement, which is subject to approval of various competition authorities, is expected to come into effect in the second quarter of 2014. - Chris Dupin