CMA CGM’s debt levels to soar above $15bn this year

Alphaliner has warned CMA CGM’s debt levels are set to soar this year while earnings dip.

The world’s third largest liner issued its 2018 results last Friday, which have since been scrutinised by analysts at Alphaliner in the lead story of their latest weekly report.

CMA CGM’s total debt hit $9.18bn at the end of 2018 and Alphaliner states the figure will increase to more than $15bn in 2019, due to new capital expenditure requirements and the consolidation of CEVA Logistics’ debt, as well as changes in accounting rules.

With higher costs hurting, CMA CGM made a net profit of $34m last year, down from $697m in 2017, sparking top management at the Marseille-headquartered line to initiate a new $1.2bn cost saving drive.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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