CMA CGM Posts Record Profits and Creates New French Air Carrier
French shipping giant CMA CGM’s first quarter year-on-year operating profit nearly tripled to US$8.9 billion drawn on revenues of $18.2 billion, which increased 70 per cent.
CMA CGM also took a nine per cent stake in Air France-KLM for EUR400 million (US$428.7 million), becoming Air France-KLM’s main private shareholder and created a new French air carrier, CMA CGM Air Cargo.
The company lifted 5.3 million TEU, a year-on-year decline of 2.8 per cent, but revenue per box was up 73 per cent to $2,800 to total $14.8 billion. “During the first quarter, our group accelerated the deployment of its strategy to become a world leader in integrated logistics,” said group chairman and CEO Rodolphe Saade. “Due to strong demand, lack of available transport capacity and persistent port congestion, tensions in global supply chains are expected to continue. We remain mobilised to improve service quality and to meet the logistics challenges of our customers. We are also vigilant in the face of the risk of deterioration in the global economic situation, linked to the pandemic, the rise in inflation and the war in Ukraine,” he said.
The company has placed a new order for 16 vessels including 10 dual fuel LNG-powered and six dual fuel methanol-powered, bringing the orderbook to 69 vessels.
“Three new 15,000-TEU vessels and five new 15,000-TEU chartered vessels have been added to the fleet during the first quarter of 2022,” Mr Saade said.
Some 95,000 containers were added during the first quarter, the statement said.
CMA CGM also holds investments in more than 50 port terminals in 33 countries, having closed acquisition of a 90 per cent stake in the Fenix Marine Services (FMS) terminal in Los Angeles.
Logistics revenue increased 57 per cent to $3.4 billion and operating profit (EBITDA) was up 45 per cent to $250 million, driven by shipping and air freight activities.
The group also decided to make CMA CGM Air Cargo a French freight airline and received its Air Carrier Certificate from the French Civil Aviation Authority on June 1 following the delivery of its first Boeing 777F.”The group is supporting the growth of CMA CGM Air Cargo investments in a fleet that will count 12 aircraft by 2026 including four new Airbus A350F that will join the fleet between 2025 and 2026,” the company said.