CMA CGM, a French shipping business, announced a 94.5 percent reduction in net profits in the third quarter of 2023. The shipping business stated in its recent report on Monday, titled ‘Third quarter 2023 financial report,’ that its revenue for the period under review was $11.4 billion.
CMA CGM is the world’s third largest container shipping firm, and it also transports cargo to Nigeria. The corporation earned $7,039 billion in net income in 2018, compared to $388 million in 2023.
CMA CGM said it is gradually rebalancing contributions from its maritime shipping and logistics divisions. The paper also stated that earnings before interest, taxes, depreciation, and amortization totaled $2.0 billion, marking a 78.2 percent decrease from the third quarter of 2022.
According to the report, “the first-half 2023 trends remained in play in the third quarter of 2023, with deteriorated market conditions in the transport and logistics industry. Revenue amounted at $11.4 billion in the third quarter of 2023, with contributions from the group’s maritime shipping and logistics operations gradually rebalancing.”
EBITDA was $2.0 billion, 78.2% lower than in the third quarter of 2022. The group’s EBITDA margin was 17.5%, down 28.5 points, and net income was $388 million.
CMA CGM is continuing its voluntary investments to diversify its boats’ energy mix, with the goal of reaching Net Zero Carbon by 2050. It has already spent more than $17 billion on a fleet of roughly 120 LNG and methanol-powered ships that will be delivered by 2027.
Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM Group, commented on the findings, saying, “The industry continued to normalize in the third quarter, with a return to pre-pandemic market conditions.”
The global economic slump is projected to continue to weigh on our business in the coming months, but volumes carried remain strong. We remain committed to lowering our operating expenses and to decarbonizing and digitizing the industry to meet customers needs.