• 2020 November 21 11:38

    Third quarter 2020 business activity strong CMA CGM Group operating performance

    The Board of Directors of the CMA CGM Group, a world leader in shipping and logistics, met today under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the third quarter of 2020.

    Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, commented: “In a favorable market environment for our industry, the Group reported very strong financial and operating performances due to the full commitment of its teams. Our shipping activity has seen a significant increase in volumes transported compared to the second quarter of 2020, and CEVA's transformation plan starts to bear fruit. This crisis has also demonstrated the solidity of our business model and demonstrated the relevance of our strategy, combining logistics solutions with transport offering. In a context of strong demand for the coming months, we will continue to respond with agility to the needs of our customers.”

    Business activities and financial performance of the third quarter of 2020

    The CMA CGM Group demonstrates strength and agility in an unprecedented global context

    The third quarter business activities saw a marked recovery in demand for transportation of goods, following the scaling back triggered by the Covid-19 pandemic during the first half of the year. In response to this recovery, the CMA CGM Group stepped up the redeployment of operated capacities during the third quarter, once again demonstrating the agility of its business model and the commitment of its employees.

    This increase in volumes transported was due to:

    • the pick-up in global economic activity following the easing of various lockdown measures;
    • the strong momentum in terms of the consumption of goods to the detriment of services activities, encouraged in some locations by support packages;
    • strong e-commerce growth with inventory rebuilding;
    • the usual seasonal variation in business activity in preparation for both the September and Christmas peak consumption periods in western countries.

    Strong financial indicators for the Group

    During the third quarter of 2020, the CMA CGM Group showed great responsiveness to support recovery in the sector. The health crisis has confirmed the relevance of the Group's strategy in terms of the complementarity between logistics solutions and maritime transport.

    Group revenue was up by more than 6% during the third quarter of 2020 compared with the third quarter of 2019, reaching a level of USD 8.1 billion.

     

     

     

     

     

    During the third quarter of 2020, the CMA CGM Group reports yet another solid improvement in Net Income Group share, with profits of USD 567 million, compared with USD 45 million during the third quarter of 2019 and USD 136 million during the second quarter of 2020.

    The Group’s operating performance generated an operating cash flow in excess of USD 1.8 billion, i.e. USD 814 million more than during the third quarter of 2019. The Group’s liquidity stood at USD 2.8 billion on September 30, 2020.

    Shipping: strong EBITDA growth of +76%

     

     

     

     

    Volumes carried during the third quarter of 2020 continued to recover and were up 16.8% compared with the second quarter of 2020. Volumes were also up 1% compared with the third quarter of 2019. Revenue for the quarter increased by 6.3% compared with the third quarter of 2019, totaling USD 6.3 billion for shipping, thanks to average revenue per TEU (twenty-foot equivalent unit) of USD 1,120, up 5.2% year-on-year, in particular on Transpacific trade lanes.

    Shipping EBITDA grew by an impressive 76% during the third quarter of 2020 to USD 1.5 billion (versus USD 870 million during the third quarter of 2019). Unit cost by TEU was down -6.8% compared with the third quarter of 2019, at USD 845 due to the combined impact of declining oil prices and the Group’s cost-cutting initiatives, notably in transportation and intermodal services. As a result, the Group has seen a strong 205.7% increase in its operating margin to USD 978 million.

    Logistics: a transformation plan which is bearing fruit



     

     

     

     

    CEVA Logistics continues to recover and is on course with its transformation plan. The effects observed in the second quarter of 2020 continued and improved during the third quarter.

    The revenues of the Group's logistics subsidiary stood at USD 1.9 billion in the third quarter, up 7.9% from the third quarter of 2019. EBITDA stood at USD 167 million, up 18.4% from the third quarter of 2019, and up from the second quarter of 2020 (USD 153 million).

    This performance was mainly supported by the turnaround in contractual logistics activities (warehousing solutions and related services) following the reopening of sites closed in the second quarter due to the health crisis. Airfreight momentum also remained strong with favorable margins despite the significant reduction in air traffic.

    The operating margin recovered from USD 12 million in the third quarter of 2019 to USD 39 million in the third quarter of 2020. Finally, the contribution of CEVA Logistics to net income Group share stood at USD 1 million compared to - USD 44 million in 2019.


    Highlights for the third quarter of 2020

    Liquefied Natural Gas, a pioneering choice for a new generation of container ships

    On September 22, the CMA CGM JACQUES SAADE joined the fleet. The Group's new flagship is the world's largest container ship powered by liquefied natural gas (LNG). The CMA CGM Group is firmly committed to the energy transition in maritime transport and is rolling out a plan aimed at providing the Group with a fleet of 26 LNG-powered ships by 2022. Liquified gas is an energy of the future, which preserves air quality by removing 99% of sulfur oxides, 91% of particulate matters and 92% of nitrogen oxide emissions. It enables the reduction of CO2 emissions by up to 20% compared with standard fuel oil engines.


    Development of expertise in air freight

    Building on its strategic development in logistics, the CMA CGM Group intends to increase its expertise in air freight. The CMA CGM Group has therefore signed a memorandum of understanding for the acquisition of a 30% stake in Groupe DUBREUIL Aéro (France's leading private airline group, owner of the airlines Air Caraïbes and French Bee). This transaction is subject to review by the competition authorities.

    Outlook

    Strengthening of the Group's financial structure

    In October, the Group went ahead and issued bonds worth EUR 525 million and prepaid its outstanding bonds due to mature in 2021.

    In addition, and in line with its debt reduction strategy, the CMA CGM Group will prepay USD 750 million of various debts in the coming weeks. These include the NOL (now CMA CGM Asia Pacific Limited) notes due to mature in 2021.

    Both rating agencies S&P and Moody's have adopted a favorable outlook on CMA CGM's debt rating (B + and B2 respectively).

     

     

    Ongoing momentum in world trade and earnings outlook

    During the fourth quarter, maritime activity is more sustained than during the third quarter due to the ongoing increase in volumes. This momentum is particularly marked in the United States and Latin America and allows the fleet to continue operating at full capacity as during the third quarter. As a result, freight rates remain high.

    In this favorable environment and thanks to the ongoing control of unit costs, the Group should see a further improvement in the EBITDA margin in the fourth quarter.

    About CMA CGM

    Led by Rodolphe Saadé, the CMA CGM Group is a world leader in shipping and logistics.

    Its 538 vessels serve more than 420 ports around the world, on all five continents. In 2019, they transported nearly 22 million TEU (twenty-foot equivalent units) containers. With CEVA Logistics, a world leader in logistics services, CMA CGM handles more than 500,000 tons of airfreight and 1.9 million tons of inland freight every year.

    CMA CGM is constantly innovating to offer customers new maritime, inland and logistics solutions.

    Present on every continent and in 160 countries through its network of 755 offices and 750 warehouses, the Group employs more than 110,000 people worldwide, of which 2,400 in Marseille where its head office is located.




2021 January 18

18:56 CMA CGM applies Local Port Charges for USA imports/export
18:26 The Valencia Containerised Freight Index rises 4.19% in December 2020
18:06 71 vessels were repaired at the “Bibiheybat” Ship Repair Yard in 2020
17:45 Klaipeda State Seaport Authority signs contract for shipping canal dredging
17:26 Hanseaticsoft’s Cloud Fleet Manager endorsed by Singapore government to help shipping companies accelerate their digitisation
17:16 Busan Por secures logistics base in Indonesia
16:47 SCF’s LNG carrier Christophe de Margerie completed her eastbound voyage carrying cargo of LNG along NSR
16:43 Port of Antwerp container throughput up 1.3% in 2020
16:25 Hamina in Finland becomes new partner in Baltic cruise network
16:15 Singapore to vaccinate over 10,000 frontline maritime personnel by end January
15:50 Average spot market price for Russian M100 product climbed to RUB 18,290 pmt
15:29 The Great Lakes Towing Company names latest Damen Stan Tug 1907 ICE harbour tugs
14:59 Russia’s first Aframax tanker Vladimir Monomakh leaves for its first voyage
14:36 NOVATEK reports preliminary operating data for 2020
14:13 Niestern Sander announces successful transportation of EasyMax from shipyard to the port
13:51 Container throughput of port Shanghai (China) in 2020 declined by 0.5%
13:32 Throughput of Taganrog port in 2020 climbed by 4%
13:15 Kim Heng and Hunghua sign memorandum of understanding in relation to 2 units of 250 feet crane barges
13:00 Throughput of Russian seaports in 2020 declined by 2.3% (detalization)
12:24 Container throughput of Hong Kong port (China) in 2020 fell by 1.9%
12:01 The port of Amsterdam experiences a decrease in transhipment in 2020 due to energy transition and coronavirus   
11:37 Tuapse Sea Commercial Port increased its throughput by 6% in 2020
11:15 SEACOR Marine completes sale of windfarm support business
11:05 Big Port St. Petersburg marks 60th anniversary of icebreaker assistance
10:43 Port of Long Beach moves a record 8.1 million TEUs in 2020
10:29 MABUX: Bunker market this morning, Jan 18, 2021
10:13 BPA: Government must act immediately on seafood exports
09:50 Throughput of Murmansk Sea Fishing Port in 2020 fell by 16.8% YoY
09:28 Crude oil prices decrease amid demand/supply concerns
09:11 Baltic Dry Index as of January 15

2021 January 17

17:19 Coast Guard, TCI Police rescue 159 people off Turks and Caicos
16:49 Svitzer Australia takes delivery of second of three new tugs for Mid West Ports and Port of Geraldton
15:34 CMA CGM strengthens its customer offer
14:29 GTT obtains AiP from BV for the NO96 containment system application as LNG fuel tank for ULCVs
13:42 Port of Los Angeles cargo reaches 9.2 million TEUs in 2020
12:16 OOCL presents 2021 Ocean Alliance products
10:49 Hapag-Lloyd announces PSS on Turkey and Greece to USA trade

2021 January 16

15:39 New ship Silver Dawn floats out in Ancona.
14:31 Signing of MoU in relation to 2 units of 250 feet crane barges
13:28 CMA CGM to apply FAK rates for North Europe to Gulf and Red Sea trade
12:49 DuPont Clean Technologies to develop scrubbing project with BELCO® technology to control the emissions of Empresa Nacional de Petróleo (ENAP)
10:35 Hapag-Lloyd announces blank sailings on Europe - Asia trade
09:11 Golar LNG and Stonepeak Infrastructure Partners to sell 100% of Hygo Energy Transition Ltd. to New Fortress Energy

2021 January 15

18:15 Organic fertilizers and biogas from biowaste in the Helsinki region – commercial use of the Lohja biogas plant started up
18:04 New Speakers and Sponsors announced for Unmanned Maritime Systems Technology virtual conference
17:51 High reliability of Limburg Express requires expansion
17:41 Gulf of Guinea records highest ever number of crew kidnapped in 2020, according to IMB’s annual piracy report
17:38 Diana Shipping announces increase in tender offer price for its shares of common stock and extension of expiration date
17:29 OCEAN Alliance Day 5 Product signing ceremony
17:08 i4 Insight partner with FNT to integrate Condition Monitoring service
17:06 Throughput of Rostov-on-Don port in 2020 grew by 13% Y-o-Y
17:03 The effects of the coronavirus epidemic prevention regulations on Finnlines passenger traffic
16:42 Launching of Viking Glory slated for Jan 26
16:28 Carisbrooke Shipping and SMT Shipping partner with Nautilus Labs for collaboration to optimize fleet performance
16:01 Tallink Grupp appoints new Managing Director for Swedish subsidiary Tallink Silja AB
15:17 USCG cutter Joseph Gerczak to increase maritime presence in Pacific
14:47 First steel cut for new Carnival Celebration, next Excel-class ship set to debut from PortMiami in 2022
14:22 Zvezda Shipyard starts cutting steel for third MR product carrier
13:57 Bunkering of a new-generation LNG-powered container ships begins in Rotterdam
13:26 Holland America Line opens bookings for Europe 2022 cruises - four ships span the region on itineraries ranging from 7 to 21 days