CMA CGM's 2015 results and margins remain firm in a difficult environment

The Board of Directors of France's CMA CGM Group, a leading worldwide container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the year ended 31 December 2015.

Financial and Operating Highlights

Volumes carried in 2015 rose by 6.3% year-on-year, to 13.0million TEUs, significantly outperforming the market. The new Ocean Three Alliance in place since January 2015 with China Shipping and UASC. CMA CGM's robust expansion in the United States, where the Group had anticipated the market's growth. Consolidated revenue was down 6.4% year-on-year to $15.7 billion. Volume growth helped stem this decline in revenue despite the sharp fall in freight rates.

Core EBIT came in at $911 million. The resulting core EBIT margin remained stable, at 5.8% for the year, and was once again one of the highest in the industry. Unit costs fell as a result of the slump in oil prices and the Group's tight rein on other costs. Consolidated net profit Group share was therefore also virtually stable, at $567 million. As in 2014, it benefitted from a positive exchange rate impact.

Sustained deployment of the shipping growth strategy

Operational launch of the Ocean Three Alliance on Transpacific and Asia-Europe routes: this agreement, effective since the beginning of 2015, enables the Group to offer high-quality service while deploying the right size vessels.

Optimisation of our shipping lines constantly in phase with market demand: Delivery of 18 ships, including six 18,000TEU vessels deployed on major shipping routes. Capacity adjustments on certain lines in order to adapt the Group's offer to identified changes in demand.

Enhanced intra-European coverage: since its consolidation within the CMA CGM Group as of 1 July 2015, OPDR has seen volumes surge by 30%, attesting to the Group's integration expertise and the growth of its recently acquired subsidiaries.

Extended agency network, with new sales offices opened in 13 countries: these new offices will allow the Group to deepen its footprint in countries with high growth potential and expand the client portfolio.

Expanding the portfolio of shipping-related solutions

Stepping up expansion in the Logistics Division: acquisition of 60% of LCL Logistix, a 3rd party logistics leader in India's fast-growing market. Opening new container depots in Africa, which round out our maritime shipping services with a high value-added multi-modal solution. Terminal agreements: concessions won to develop terminals in Kingston (Jamaica) and Kribi (with partners Bolloré and CHEC) in Cameroon. The Kribi terminal will boost port activity in West Africa and add to the Group's shipping and ground operations, thereby significantly improving quality for customers.

Outlook for 2016

Growth in the container shipping market in 2016 will continue to be dependent on global macroeconomic trends. The beginning of 2016 is tough and marked by freight rates under pressures which will impact industry profitability. Against this backdrop, CMA CGM will pursue its ongoing efforts to adapt its operational organisation and optimise its lines.

In addition, CMA CGM has announced that its flagship fleet of six 18,000-TEU vessels will be deployed in the Transpacific, the industry's fastest-growing market, starting at the end of May.

In 2016, CMA CGM will also continue with its project to acquire Singapore-based NOL, the world's 12th-largest shipping company. The projected acquisition of NOL, which operates under the APL banner, aims to reinforce the Group's position in worldwide shipping with the complementary geographical strengths of the lines, while also boosting its competitive edge with substantial economies of scale.  Finally, the group will continue with the implementation of its cost reduction program combining rigorous operational practices, optimal fleet utilization, reduction of energy consumption, and strict control of all its spending.

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