The newbuildings will be built by Hanjin Heavy Industries, with the contract to be signed this week, group vice-chairman Rodolphe Saadé told Lloyd’s List.
Unlike the ultra large containerships on order for Ocean Three partner United Arab Shipping Co, the vessels will not be LNG-ready.
The French line, one of the last to report its 2014 earnings, achieved some of the best set of results in the industry and predicted that 2015 should be another good year.
Global container trades are forecast to expand by around 5% in 2015 and 2016, but Mr Saadé said CMA CGM was expected to grow faster than that.
“CMA CGM’s performance in 2014 was extremely robust. By combining operational excellence, disciplined financial management and innovation, we have delivered strong growth in results, with one of the industry’s highest margins and an even healthier balance sheet,” said Mr Saadé.
During a conference call, Mr Saadé also said CMA CGM was “open” to more merger and acquisition opportunities, even including another global player if the right opportunity arose.
“The industry is still struggling and only a few carriers are making profits like CMA CGM,” Mr Saadé acknowledged. “Will there be consolidation? I believe yes, but for the time being the process is still very slow. One would have expected more consolidation.”
Although CMA CGM has concentrated on buying regional lines such as Germany’s OPDR, which is in the process of being acquired, Mr Saadé would not rule out a larger-scale transaction.
“We are obvously open to that — the financial results of CMA CGM are good, so we are definitely open to growing our business and if this includes M&A, why not?”
An initial public offering is also possibility for the family-owned business.
“We are looking at various options but we are open to all,” Mr Saadé said.
He also acknowledged that the Ocean Three alliance of CMA CGM, UASC and China Shipping, which started a few weeks ago, could accept more partners.
“We are open, if we wish, to add more players to Ocean Three,” Mr Saadé disclosed.
Both CMA CGM and UASC have signed separate co-operation agreements with Hamburg Süd and “time would tell” whether the German line eventually became a fourth member of the alliance.
Commenting on group strategy, Mr Saadé said:”We have entered 2015 with a fresh commitment to growth and are going to drive faster momentum by continuing to demonstrate our agility, with the launch of the Ocean Three strategic alliance, new solutions and new ports of call, and the strengthening of our positions in shipping-related businesses, such as logistical services, inland transport and port terminals.”
The world’s third-largest container line saw volumes increase 8.1% to 12.2m teu. Revenue grew 6.3% to $16.7bn, while core earnings before interest and tax were almost 29% higher at $973m.
That was despite a 2.6% drop in average freight rates over the year, which were down to $1,358 per teu in the fourth quarter.
Consolidated net profit rose 43.2% to $584m, compared with $408m in 2013, which included a gain of $200m from the sale of a 49% stake in Terminal Link.
There was also a reduction in net finance costs to $222m from $445m, helped by a positive impact of $70m from the euro-dollar exchange rate. Return on invested capital was down slightly, at 9.9% from 10.3% previously. Debt was cut by 21% over the year to $2.9bn.
Looking ahead, CMA CGM said the recent decline in bunker prices “may have a positive impact on operating results” this year, depending on what happens in the months ahead.
CMA CGM said volume growth was led by the Asia-north Europe and Asia-North Africa trades, which enjoyed sustained growth; the reorganisation of CMA CGM and Delmas’ Africa lines, combined with the opening of new inland corridors and dry ports; a stronger US economy; and the expansion of its ANL Asia-Pacific trades specialist, which increased volumes carried on existing lines and opened new shipping services.
The Marseilles-headquartered carrier said its fleet would be strengthened this year by the delivery of six new 18,000 teu vessels, of which three are owned, a dozen 9,400 teu-class vessels under long-term charter, and three group-owned 2,100-teu GuyanaMax vessels.
The price being paid for the three 20,600 teu vessels has not been disclosed. They will be delivered from the third quarter 2017. The ships will have larger dimensions than CMA CGM’s Jules Verne-class 16,000 teu vessels, which are 396 m long and 53.6 m wide.
CMA CGM also has six 17,500 teu vessels on order that were originally specified at 16,000 teu and then upgraded during the construction phase.
The group said it expects to benefit from the deployment of its Ocean Three strategic alliance with China Shipping and United Arab Shipping Co, as well as from its agreements with Hamburg Süd in South and North America and the consolidation of Germany’s OPDR, subject to regulatory approval.
It is also investing in more port operations, both through the Terminal Link joint venture with China Merchants and on its own. It will sign a 30-year concession to develop a transhipment hub in Kingston, Jamaica, next week.