Shipping company CMA CGM posts quarterly profit of $5.6 billion

PARIS, Nov 19 (Reuters) – Maritime group CMA CGM on Friday reported higher third-quarter profits and said it expected an even better performance for the end of the year as demand is now intense. high freight rates and stretched container capacity.

French company CMA CGM, one of the world’s largest container lines, said its net profit rose to $5.6 billion in the third quarter from $567 million in the same period last year , while EBITDA base profit increased to $7.1 billion from $1.7 billion.

An economic rebound from a coronavirus pandemic has disrupted supply chains and exacerbated logistical issues such as aging infrastructure and driver shortages.

Maersk, the world’s largest container company, said this month that port delays would persist into next year.

“The pressure on the effective shipping capacity of consumer goods observed since the summer of 2020 is expected to persist at least until the first half of 2022,” said CMA CGM.

“The current context should therefore enable the Group to achieve an even stronger financial performance during the fourth quarter.”

The group, privately controlled by the Saade family, increased its transport capacity by almost 6% over the year until September 2021, he said.

The company has also grown like Maersk in non-sea transport, thanks to the acquisition of CEVA Logistics two years ago and the creation of an air freight division this year.

As part of its air cargo push, CMA CGM on Friday announced an order from Airbus for four A350F cargo planes.

Rising profits have helped CMA CGM accelerate its investments this year, including the planned acquisition of a port terminal in Los Angeles for around $2 billion.

The group also said its net debt fell sharply, to $11.9 billion as of September 30, down $4.9 billion from the end of last year. (Reporting by Gus Trompiz Editing by Chris Reese and David Gregorio)

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