Q3 2016 results released by CMA CGM, the world’s third largest shipping line, on Friday November 18, showed another difficult period for the shipping industry, with the carrier posting a net loss of US$268 million.
Compared to a $51 million net profit in the same period in 2015, the continuing low freight rates and acquisition of Singapore’s NOL at the start of 2016 have both dragged down CMA CGM’s profitability, despite the carrier saying the sector is showing “the first signs of stabilisation”.
Excluding NOL, the net loss was reduced to $202 million, with the cost repaying the loans used to fund the $2.4 billion purchase, accounting for part of that loss.
PTI reported in October that half of the $1.6 billion loan had already been repaid, with the announcement last week that the remaining half had now also been repaid thanks to a sale-and-leaseback deal for containers and a securitisation programme, as well as an extensive cost reduction programme across the business.
Additional sales from the Singapore line actually contributed to a 33.9% rise in total Q3 earning to $4.47 billion.