CMA CGM Q2 net profits skyrocket

The group reported a 66.7 percent increase in net profits to $156 million on revenues of $4.2 billion for the second quarter.    CMA CGM Group reported net profits of $156 million for the second quarter of 2015, a year-over-year increase of 66.7 percent.
   Revenues posted a year-over-year drop of 2.1 percent to $4.2 billion for the second quarter.
   Core earnings before interest and tax for the second quarter jumped 59.3 percent from the prior year’s second quarter to $325 million, as the group’s lower unit costs outpaced the drop in average revenue per container carried.
   Volumes carried for the quarter posted a year-over-year increase of 6.2 percent to 3.3 million TEUs, while the global market volume growth was between 1 percent and 2 percent.
   In April, CMA CGM signed an agreement with the Port Authority of Jamaica, which granted it the concession of the Kingston Container Terminal for 30 years.
   In June, CMA CGM extended the maturity of its debt with the issuance of a 725 million euro bond that will mature in 2021, which allowed it to refinance in anticipation of the outstanding bonds that will mature in 2017 and 2019.
   The group also reported strong growth in lines between the United States and in reefer cargoes during the second quarter.
   In July, the group closed the acquisition of OPDR, a shipping company that specializes in intra-European multimodal solutions.
   CMA CGM also signed a $1 billion financing solutions framework agreement with Chinese bank CEXIM and a partnership with China Merchants as part of China’s “One Belt, One Road” program in July, which is an initiative supported by the Chinese government to develop infrastructure and logistics projects.
   For the third quarter, CMA CGM said that as a result of the projected volatile freight rates for Asia-Europe and Asia-Mediterranean lines, it will continue to adjust its capacities.