CMA CGM revenues surge on demand

CMA CGM is channelling its newfound financial strength into fleet and equipment upgrades, after reporting a 49.2% rise in group revenues to $10.7bn in the first quarter.

While the annual rise has to be read in the light of last year’s pandemic-driven downturn in the first quarter, the company has made a third of 2020’s annual revenue in just one quarter this year.

Earnings before interest, tax, depreciation and amortisation were $3.2bn as net profit for the quarter more than doubled over that achieved in the fourth quarter of 2020, rising to $2.1bn.

The carrier is now setting about strengthening its position through the expansion of both its maritime and aviation fleets.

“At a time when global supply chains are under severe pressure, we have rallied together to provide our customers with additional solutions,” said chief executive Rodolphe Saadé.

“We have expanded our fleet, most notably with the addition of new LNG-powered 23,000 teu vessels. We have also created a new airfreight division with four Airbus A330-200 full-freighters, thereby strengthening our range of agile solutions.”

Mr Saadé added that “sustained demand” for the transportation of consumer goods was expected to continue throughout this year.

“In this context, the complementarity between our maritime transport offer and the logistics solutions offered by our subsidiary CEVA Logistics has proven particularly relevant.”

The company warned, however, that the port congestion and pressure on global supply chains persisted.

In an effort to address the challenge, it had increased its fleet capacity by 12.9% year on year, with the introduction of new vessels, particularly its LNG-fuelled 23,000 teu fleet, of which six of had already been delivered with three more due during the remainder of 2021.

It is also seeking to address the equipment shortage with the addition of 330,000 new containers, boosting its fleet by 8.1%.

It’s airfreight division had also invested in four Airbus A330 transport airplanes that began services during the quarter.

In its CEVA Logistics business there was an increase in earnings, with revenues rising 25% to $2.1bn.

“The group’s logistics business continued its upturn, in line with the trajectory outlined in the group's transformation plan,” CMA CGM said. 

And there were few signs of any slow down in the coming months, it added.

“The sustained demand for the shipping of consumer goods seen since the summer of 2020 is expected to continue in the second half of 2021,” the company said.

“The current environment should allow the Group to achieve at least the same results in the second quarter of 2021, as it did in the first.”

It added it would continue to invest in strengthening and upgrading its shipping and logistics assets while bolstering its financial structure.