CMA CGM reported a slowdown in revenue and profit growth over the third quarter of 2022.
The company said the quarter was “shaped by persistent geopolitical tensions” and resulting inflation. This, combined with decreases in consumer spending dampened freight demand, but also helped ease port congestion.
Bunker prices bit into the company’s bottom line. It said on a like-for-like fuel consumption basis, higher energy prices led to a year-over-year increase of US$822 million in bunker costs in the third quarter of 2022.
CMA CGM Group chairman and CEO Rodolphe Saadé said the company recorded strong results in the quarter.
“Over the past two years, we have significantly strengthened our financial structure and developed our business through the entire supply chain. Declining demand has prompted a return to more normal international trade flows and a significant reduction in freight rates,” he said.
“In this new environment, we will continue to invest to strengthen our positioning in maritime shipping and logistics, accelerate our energy transition and provide our clients with even more efficient solutions.”
The company saw a modest increase in revenue in the third quarter, compared with the previous quarter. Q3 revenue was US$19.91 billion, up from US$19.48 billion in Q2.
However, EBITDA decreased over the period, falling from US$9.59 billion in Q2 to US%9.15 billion.
Looking at shipping, we see a slight increase in volumes carried, but a decrease in revenue, as well as a decrease in EBITDA, evidence of declining freight rates.
During Q2 2022, the company carried 5.62 million TEU and 5.67 million TEU in Q3 – an increase of nearly 1%. However, revenue went from US$16.02 billion to US$15.71 billion – a decrease of 1.9%.
But, this past quarter’s maritime shipping revenue was up 25.8% year-on-year – it stood at US$12.49 billion for Q3 2021.
