CMA CGM’s third-quarter profits jump 522%
Updated: Dec 23, 2020
November 24, 2020
(American Shipper) Another container-line quarterly report, another big profit and another bullish outlook on the rest of the year.
French carrier CMA CGM reported net income of $567 million for Q3 2020 for the group, up 522% from $45 million in Q3 2019.
For the shipping division, earnings before interest, tax, depreciation and amortization (EBITDA) was $1.5 billion, up 76% year-on-year. Volume rose 1%, to 5.59 million twenty-foot equivalent units (TEUs). Revenue per TEU was $1,120, up 5.2%.
“During the fourth quarter, maritime activity is more sustained than during the third quarter due to the ongoing increase in volumes,” reported CMA CGM. “In this favorable environment and thanks to the ongoing control of unit costs, the group should see a further improvement in the EBITDA margin in the fourth quarter.”
“The earnings upgrade cycle in container shipping continues,” wrote Jefferies analyst David Kerstens on Monday. He pointed out that CMA CGM has “confirmed the positive outlook” previously voiced by Maersk and Hapag-Lloyd.
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