CMA CGM Group has reported a solid set of results for the first quarter 2020 with EBITDA up by 24% to US$973 million , equating to a margin of 13.5%, up 3% percentage points compared to the first quarter of 2019.
Shipping revenue declined by 3.3% compared to Q1 2019 to USD 5.52 billion while volumes carried decreased by 4.6% compared to the first quarter of 2019 due to the impact of COVID-19 and more specifically the shutdown of factories, particularly in Asia in February and March. Nevertheless, revenue per carried container improved slightly, due mainly to the application of fuel surcharges.
Rodolphe Saadé, chairman and chief executive officer, CMA CGM Group, commented:“The good results of the first quarter demonstrate the strength and the resilience of the Group. During this unprecedented crisis, our customers have been able to rely on our agility, the expertise of our teams and the complementarity of our logistic and maritime offers, in order to ensure the continuity of their supply chains.
“Despite the uncertainty around global economy, we anticipate an improvement during the second quarter, thanks to our operational flexibility and our discipline in terms of cost control. The current situation reinforces our conviction that it is essential to develop better balanced economic exchanges, whilst respecting the environment. We have set Carbon neutrality by 2050 as our objective and we are ready to face future challenges.”
To bolster its liquidity position, the Group signed a syndicated loan of €1.05 billion with a consortium of three banks: HSBC, BNP Paribas and Société Générale. The loan has an initial one-year maturity and an extension option for up to five additional years. Approximately 70% of the loan is guaranteed by the French State and is part of the scheme set up by the French government in response of the Covid-19 crisis and validated by the European Commission.