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.
