Image credit: CMA CGM

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CMA CGM has highlighed the "sharp increase in fuel prices" in its financial results for the second quarter of 2018 as the French boxship operator posted a decline in both net income and earnings before interest and taxes (EBIT) "in a market environment affected by rising fuel costs".

Marine fuel unit costs per tonne between April and June were up 27.7 percent year-on-year (YoY), CMA CGM said.

Expenses for bunker fuel and consumables in Q2 increased year-on-year (YoY) by 239.4m, or 39.0 percent, to $852.5m. For the first half of 2018, the figure was $1,641m - a rise of $430.5m, or 35.6 percent.

CMA CGM said the overall increase in operating expenses in Q2 - by $1,748.7m, or 19.6 percent, to $10,686.1m - was mainly due to the rise in bunker prices and an increase in volumes carried.

Net income for the period plummeted $187.8m to $32.8m, whilst core EBIT - the operating profit indicator - dropped $405.3m to $67.1m.

Q2 revenue grew YoY by $391.5m, or 7.4 percent, to $5,702.6m, and volumes transported by CMA CGM increased by 9.6 percent, which was higher than industry growth, the shipper pointed out.

Commenting on the results, Rodolphe Saade, chairman and chief executive officer of CMA CGM Group, remarked: "Over the second quarter CMA CGM has recorded a core EBIT margin close to the first quarter as well as a positive net income in spite of a sharp increase in fuel prices. The strong volume growth demonstrates our commercial strength and the quality of our service offering."

"CMA CGM Group is confident in the second half of the year and anticipates an improvement in its core EBIT margin, thanks in particular to the recent rise in freight rates and sustained of volumes," CMA CGM added.