Shipping line triples profit

The French shipping line, CMA CGM, had a lot to be happy about in its second quarter (Q2) report.

It claimed that it was “significantly outperforming the market, despite a sharp fall in freight rates and industry overcapacity”.

The report added that volumes carried during the second quarter increased by 6.2% year-on-year, to 3.3 million TEUs, compared to global market volume growth of between 1% and 2%. Although the average revenue per container carried decreased by 7.8%, this decrease was significantly less than benchmark indices for the period.

Meanwhile, the report also noted that unit costs fell 10.9%, largely due to the sharp fall in oil prices.

CMA CGM’s core earnings before interest and tax (EBIT) surged 59.3% compared to the second quarter of 2014 to the equivalent of about R4.323 billion, as the group’s lower unit costs outpaced the decline in average revenue per container carried – due, it added, “to the broad diversity of the group’s customers and lines”. The report also said: “The core EBIT margin of 7.9% was once again significantly above peer averages.”

Consolidated net profit group share came to almost R2.075bn, up 66.7% on second-quarter 2014.

During the first half of the year, volumes carried were up 8.2% to 6.4 million TEUs, revenue was stable at just over R107.7bn and net profit almost tripled to R7.475bn.