The French shipowner CMA CGM multiplied its net profit by 3.5 despite rising costs, to 7.2 billion dollars, according to figures published on Friday.
French shipowner CMA CGM continued to benefit from the overheating of maritime transport in the first quarter of 2022, multiplying its net profit by 3.5 despite rising costs, to 7.2 billion dollars, according to figures published Friday. The Marseille group, which has diversified into logistics with the integration of the Swiss Ceva Logistics, had earned 2.1 billion dollars in the first quarter of 2021, and 17.9 billion over the whole year. The turnover of the world’s third largest shipowner increased by 70% to 18.2 billion dollars. CMA CGM’s gross operating surplus (Ebitda) was multiplied by 2.8 to 8.9 billion dollars, enabling its gross margin to increase by 19 points to 48.7%.
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In detail, the turnover of the maritime activity is up by 73% to 14.85 billion dollars, despite a drop in volumes transported by 3%. Ebitda was multiplied by 2.9. “The ongoing strong tensions in the supply chains have continued to weigh on the effective capacity of the world fleet since the start of 2022 and on the group’s operations. The generalization of port congestion is degrading the quality of service, limiting the volumes transported by the maritime fleet”, summed up the management. Transport prices continued to rise, which greatly benefited the shipowner, but management reported, as in the previous quarter, an increase in operating costs of 16% over one year.
Development in air freight
The group’s fleet, which stopped transporting plastic waste on June 1, grew by 3 new vessels – and 5 others chartered – and 14 second-hand vessels during the first quarter. CMA CGM also ordered 69 other new vessels. The shipowner also confirms its development in air freight: its new company CMA CGM Air Cargo received the air carrier certificate from the French Civil Aviation Authority on June 1, and will have 12 aircraft by 2026, according to the press release. The group has also signed an agreement with Air France-KLM, of which it is to become a major shareholder. At the same time, Ceva Logistics’ turnover increased by 57% between January and March, to 3.4 billion dollars, with Ebitda progressing more slowly by 45%, affected by the inflationary context.
CMA CGM “remains confident about its financial performance outlook for 2022”most “the current environment and its medium and long-term consequences remain uncertain”, underlines the management in its press release. “The sharp rise in the cost of energy, combined with (that) of the price of many raw materials, weighs on household consumption and could deteriorate the economic situation and the prospects for growth in world trade”, she warns.