Container ship of CMA CGM shipping line
A container ship of CMA CGM (Photo: CMA CGM)

 

The Board of Directors of CMA CGM Group met on November 10 to review the financial and operating results for the third quarter of 2023.

Container output in the third quarter of CMA CGM shipping line increased slightly by 0.9% over the same period last year, reaching a total of 5.7 million TEU.

“Volumes continued to grow on the North-South and short-sea lines, while further normalizing on the East-West lines, due to inventory drawdowns in the United States and more moderate household consumption in an inflationary environment,” said CMA CGM in its announcement.

The company's consolidated revenue from shipping activities was 7.6 billion USD, down 51.8% over the same period last year due to continued decline in freight rates.

Additionally, CMA CGM's EBITDA from the shipping sector reached $1.6 billion in the third quarter of 2023, or 81.6% lower than the third quarter of 2022, while the EBITDA margin was 21%. In addition, the average profit per TEU was 1,322 USD, down 52.3% over the same period last year.

 

Volume and revenue of container shipping segment of CMA CGM shipping line in Q3 2023

Volume and revenue of container shipping segment of CMA CGM shipping line (Source: CMA CGM)

 

Commenting on the results for the period, Rodolphe Saadé, Chairman and CEO of CMA CGM Group, said: “The industry continued to normalise in the third quarter, with a return to pre-pandemic market conditions. Our performance remained very solid however, confirming the relevance of our growth strategy in terminals and logistics. We are consequently more resilient as we enter this new cycle."

According to CMA CGM, the first half of 2023 trend continued into the third quarter of 2023, with market conditions in the transport and logistics industry deteriorating.

The Marseille-based shipping group achieved total revenue of $11.4 billion in the third quarter of 2023, with contributions from the Group's logistics and shipping activities gradually rebalancing. Furthermore, CMA CGM's EBITDA decreased to $2 billion, 78.2% lower than in the third quarter of 2022, and the EBITDA margin was 17.5%, down 28.5 points.

The Group's net profit reached USD 388 million, while on September 30, 2023, the net financial debt amounted to USD 100 million.

Saadé said: "The slowdown in the global economy is expected to continue weighing on our industry in the period ahead, but volumes carried are still robust. We remain committed to controlling our operating costs, and are continuing to focus on decarbonising and digitalizing the supply chain to best meet our customers' needs."

 

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Source: Phaata.com (According to CMA CGM | ContainerNews) 

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