Indian Transport & Logistics
Shipping

CMA CGM Q3 net income zooms to $2.7bn on shipping boom

Shipping revenue increased 43% to $10.8 billion and EBITDA nearly tripled to $4.3 billion.

CMA CGM Q3 net income zooms to $2.7bn on shipping boom
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CMA CGM reported a net income of $2.7 billion for the third quarter of 2024 compared to $388 million in the same period last year, driven mainly by the shipping business.

Group revenue stood at $15.8 billion in the third quarter of 2024, up 38.5 percent, and EBITDA more than doubled to $4.9 billion, says an official release.

Shipping revenue increased 43 percent to $10.8 billion and EBITDA nearly tripled to $4.3 billion. Volume increased 5.5 percent to 6.04 million TEU, and average revenue per TEU amounted to $1,798. "Shipping capacity continued to be limited by the rerouting of vessels via the Cape of Good Hope and a degree of anticipation in an uncertain global context. The strong demand amplified the usual peak season, and also caused it to begin earlier than usual."

Logistics
Revenue from logistics operations increased 31 percent to $4.8 billion in the third quarter. EBITDA stood at $459 million, a 33 percent increase on third-quarter 2023. "The Group's logistics activities continued to grow, boosted in particular by contract logistics and perimeter effects related to the integration of Bolloré Logistics in the scope of consolidation since February 2024."

Other businesses
Revenue from other activities (port terminals, CMA CGM Air Cargo, media etc.) increased by 35 percent to $749 million, boosted by perimeter effects. EBITDA increased 70 percent to $148 million.

Rodolphe Saadé, Chairman and Chief Executive Officer, CMA CGM Group says: “In a context of geopolitical and economic uncertainties, our Group has delivered solid performances in the third quarter, with a very dynamic maritime activity and a logistics pillar that continues its transformation. Thanks to the commitment of all our teams, we have successfully adapted our offering and made structural investments, particularly in terminals. This quarter also marked an important step in the deployment of artificial intelligence across our activities to continue enhancing the quality of service for our customers.”

Investments continue
The CMA CGM Group signed an agreement to acquire a stake of around 48 percent in Santos Brasil, the leading terminal operator in Brazil and the owner of South America’s largest container terminal. "The Group also concluded an agreement to create a joint venture between CEVA Logistics and Almajdouie Logistics in Saudi Arabia. These two major agreements were part of a particularly transformative year for the Group, with Bolloré Logistics entering in the scope of consolidation since February 2024."

The Group has also signed a partnership with Google to put artificial intelligence at the centre of all its maritime, logistics and media operations. "By drawing on Google's AI solutions and experts, CMA CGM will be able to equip its employees with decision-making tools."

Sustainability moves
The Group has committed $18 billion to order 131 vessels capable of running on low-carbon energy (biomethane, biomethanol and synthetic fuels), the release added. "The vessels will be operational by 2028. Twelve of these new vessels, powered by liquefied gas (LNG, biomethane, e-methane), joined the fleet in the third quarter of 2024."

The Group has signed a memorandum of understanding with SUEZ to step up biomethane production in Europe and the low-carbon transition of maritime shipping. The MoU provides for the production of up to 100,000 tonnes of biomethane per year by 2030, the release added.

First published on logupdateafrica

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