CMA CGM announces 2013 financial statements

The Board of Directors of France's  CMA CGM, the world's third largest container shipping company, met under the chairmanship of Jacques R. Saade, Chairman and Chief Executive Officer, to review the financial statements for the year ended December 31, 2013.

In 2013: - Consolidated revenue remained stable, easing back just 0.1% to $15.9 billion.
- Volumes carried rose by 7.5% to 11.4 million TEU while the market volumes at large increased by around 3% over the year.
- As a result, the decrease in average revenue per TEU was held to 7.1%, which was less than the decline in the corresponding Shanghai Containerized Freight Indices (SCFI).
This performance reflects the diversity of the group's markets and customers, as well as its growth dynamic. The launch of an e-commerce platform and the arrival of two new 16,200-TEU megaships illustrate such dynamic.

While deploying its growth strategy, CMA CGM maintained its operating cost discipline in response to persistently difficult market conditions. This helped to drive a 5.3% reduction in costs per TEU and deliver an operating margin of 4.8%, one of the industry's highest.

Consolidated net profit rose by 22.8% over the year to $408 million, partly as a result of the sale of 49% of Terminal Link, CMA CGM's terminal activities subsidiary, in June.

In 2013, CMA CGM significantly strengthened its balance sheet and liquidity, thereby enhancing its financial flexibility.
- Equity was increased following the subscription of mandatory convertible bonds by France's sovereign fund FSI (now Bpifrance) and by Yildirim in an amounts $150 million and $100 million, respectively.
- The group strengthened its financing sources, thanks to the agreement amending the covenants applicable to its bank financings, a ?00-million bond issue, the implementation of a new securitization program, and additional financings.
- As a result of the above, rating agencies upgraded CMA CGM to B2 for Moody's and to B (positive outlook) for S&P.
With more than 20 distinctions awarded in 2013, CMA CGM was once again recognized as a container shipping partner of choice.

Container shipping overall volumes are expected to increase by 4 to 5% in 2014. < Korea Shipping Gazette >