[020613.EN.SEA] CMA CGM back in black with US$102 million profit as revenues rise 6pc

MARSEILLES ocean carrier CMA CGM has posted a first quarter net profit of US$102 million, and a six per cent increase in revenues year on year to $3.8 billion against last year's quarterly loss of $240 million.

The carrier's first quarter EBITDA (earnings before interest, taxes, depreciation and amortisation) came to $258 million. The carrier said it obtains an EBIT margin of 5.1 per cent, one of the highest margins in the industry.

CMA CGM, the world's third largest container carrier, attributed revenue gains to a three per cent growth in container volumes - up 2.7 million TEU - as well as a three per cent rise in freight rates.

Additionally, the company was able to reduce debt to $4.2 billion at the end of first quarter, which was $1.1 billion less than a year ago and $0.4 billion less than the debt recorded at the end of 2012.

Looking ahead, the carrier is confident in having a "better-than-average results thanks to the diversity of its geographic exposure and its ability to effectively manage its cost structure". But it is less optimistic about the outlook of the market and expects the market to remain volatile, especially in the Asia-Europe trade as its freight rate have dropped seriously since the Chinese New Year in February.

Source : HKSG.