CMA CGM – comments on Hapag Lloyd’s preliminary figures and guidance upgrade
All,
Please find our unchanged analysis here.
Coming a few days after Maersk’s guidance upgrade, Hapag Lloyd’s results and guidance should lend further support to CMA CGM’s new bond issue.
This morning, Hapag Lloyd, a smaller competitor of CMA CGM, has published preliminary Q3 20 figures, and upgraded its FY2020 guidance.
Hapag Lloyd notes that Q3 20 is expected to be much stronger than Q2 20 in both volumes and revenues. Reported EBITDA in Q3 20 is seen growing to EUR650m vs EUR554m in 2019. As a result, the company is now upgrading its EBIT and EBITDA guidance for 2020. The full year EBITDA figure is now expected at EUR2.4-2.6bn, vs the EUR1.7-2.2bn provided on the occasion of the 1H 20 numbers (14 Aug 20).
We are long the 2021 and the 2022 bonds. With the 2021 bonds being called after the issuance of the new 2026 bonds, we are currently reassessing wether to reinvest the money into the 2025 bonds or elsewhere.
As always, feel free to reach out if you want to exchange ideas on CMA CGM.
Juliano
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Juliano Torii
2 Stephen Street
London W1T 1AN
E: jtorii@sarria.co.uk
M: +44 794 73 56 163 (preferred)
T: +44 203 744 7055