CMA CGM pursues its development strategy and once again delivers strong operating results

 
In 2017, CMA CGM carried nearly 19 million containers, a strong increase of +21.1% compared to 2016. This increase is driven by the contributions of all the shipping lines operated by the Group in addition to APL’s full-year contribution.

Significant increase in transported volumes and revenue

This strong momentum is notably linked to:
• The quality of the OCEAN ALLIANCE service offering, particularly appreciated by our customers. Launched on 1 April 2017, it covers 40 shipping services on the East-West trades
• The Transpacific market, where the CMA CGM and APL brands are particularly strong.
 
Thanks to the increase in freight rates, confirmed throughout 2017, the average revenue per TEU rose by +9% compared to 2016. Fourth quarter revenues were up 19.9% compared to the same quarter last year and stood at USD 5.5 billion. Therefore, the annual revenue for 2017 rose by a very strong +32.1% and surpassed the USD 20 billion mark for the first time, reaching USD 21.1 billion.
 
Best operating result in the industry
 
In the last quarter, the operational result stood at USD 282 million. The core EBIT margin reached 5.2%, up by 1 point compared to the fourth quarter of 2016.
 
In 2017, CMA CGM core EBIT reached USD 1.575 billion with a core EBIT margin of 7.5%, up +7.3 points compared to the previous year. CMA CGM thereby recorded the best operating result in the container shipping industry.
 
In addition to the rise in average revenue per TEU transported, the control of unit costs which rose slightly by 1.6%, despite the sharp rise in fuel prices (+42% compared to 2016) enable this particularly strong result. This once again illustrates the expertise and discipline of the operational management implemented all year long.
 
Consolidated net income group share for the year 2017 amounts to USD 701 million, a sharp increase compared to 2016 (loss of USD 452 million).
 
Launch of OCEAN ALLIANCE: the world’s largest operational shipping alliance

On 1 April 2017, OCEAN ALLIANCE, the largest operational shipping alliance in the world with 40 services and more than 320 ships, went live. The port coverage, as well as the transit times offered, were much appreciated by customers. In April 2018, CMA CGM will launch a further improved offering with its “Ocean Alliance Day Two Product”.

OUTLOOK
 
The momentum of the volumes transported in 2017 is expected to continue in 2018. The Group should continue to benefit from this trend, thanks to its worldwide presence and its portfolio of brands covering the East-West, North-South and intra-regional trades.
 
In this context, CMA CGM will actively pursue its development and will strengthen its offering in order to consistently meet and exceed customer expectations. In this respect, the Group has announced the launch of a new customer approach with the objective of:
• Supplementing its shipping services with inland and logistics offerings,
• Creating innovative services with strong added value,
• Facilitating customer experience within the shipping environment
 
In early 2018 CMA CGM took delivery of its new flagship the CMA CGM ANTOINE DE SAINT EXUPERY (20,600 TEUs) the largest containership flying the French flag. This vessel is the true emblem of the Group as it celebrates its fortieth anniversary this year.

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