[220313.EN.SEA] CMA CGM Posts $361 Million Profit As Revenues Rise 7pc To $15.9 Billion

MARSEILLES shipping giant CMA CGM has posted a net profit of US$361 million last year after suffering a net loss of $30 million in 2011 - since corrected by 2012 revenues of $15.9 billion, up seven per cent.

The leading French container shipping company, the third largest in the world, said it lifted 10.6 million TEU during the year, six per cent more than in 2011.

Said CMA CGM executive officer Rodolphe Saade: "2012 was an important year for CMA CGM. As announced, we completed our financial restructuring and strengthened our balance sheet with the sale of a new equity interest to FSI and an additional stake to Yildirim. We have therefore begun 2013 on solid foundations from which to pursue growth."

Long troubled by heavy debt, CMA CGM said it has implemented its "action plan," which has generated $800 million savings, well ahead of the initial target, said the company statement.

The company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) soared 82 per cent year on year to $1.32 million, and produced an operating profit increase of 6.3 per cent.

Looking at the new year, the company statement said: "In early 2013, freight rates levels are higher than in early 2012. World demand is expected to vary by region, remaining weak inbound to Europe but showing more positive trends elsewhere, especially in the United States, Russia and emerging markets, particularly in Asia, Africa and Latin America."

CMA CGM said it also strengthened its balance sheet with the sale of a 49 per cent stake in Terminal Link for EUR400 million (US$514 million), closing on an $100 million equity injection from Turkey's Yildirim Group, receiving a $150 million equity injection from the French government's Fonds Strategique d'Investissement (FSI), and closing on an agreement with its banks regarding its debt restructuring.

Source : HKSG.