From FreightWaves, September 4:
French container line’s shipping EBITDA rose 30% year-on-year
Another container-line quarterly report, another surprisingly big profit announcement in the midst of the coronavirus pandemic. Second-quarter results of France’s CMA CGM followed the same pattern as Maersk. Volume down, revenue down, costs down even more, so profits up.....MUCH MORE
On Friday, CMA CGM reported net income for the group of $136 million for the second quarter of 2020 (Q2 2020) versus a net loss of $109 million in Q2 2019.
Shipping division performance
CMA CGM’s container-shipping division carried 4,781,000 twenty-foot equivalent units (TEUs) of volume in Q2 2020. That was down 13.3% year-on-year, bringing shipping division revenues down 10.9% to $5.318 billion.
Revenue per TEU was $1,112, up 2.8% year-on-year.
Unit cost per TEU in Q2 2020 was $892, down 4.6% year-on-year. Unit cost fell due to “the decline in oil prices, cost-cutting initiatives and the reduction in vessels and containers deployed,” said the company....
*And not only because the competition was showing strong numbers. Way back on June 22 we saw "Shipping: CMA CGM Must Be Seeing A Pickup In Business"
If interested see also:
"CMA CGM to take delivery of world’s largest LNG-powered vessel"
This is a huge bet by the French major and as long as oil doesn't revisit $20 (plus low-sulphur differential) it should give them a cost advantage on the big ones.
It was January 2018 when CMA CGM took delivery of the 20,600 TEU Antoine de Saint Exupery causing me to nickname the then-new flagship "Le monstre des mers".
Now the Saade will become the line's flagship and I'll have a new monster of the seas.
"World’s Largest LNG Bunkering Vessel Arrives in Rotterdam" (so that's how CMA CGM will fuel the new megaships)
Shipping: "CMA CGM, NYK and Port of Rotterdam Join CEO-Led Hydrogen Council"
And many, many more.
