The liner carrier CSAV on Thursday reported a net profit of $34.3 million in the second quarter of 2013, the second profitable quarter for the line since it was taken over by the Luksic Group in 2011.
CSAV, which has sustained more than $1.8 billion in operating losses over the past five years
according to American Shipper
analysis, lost $140.2 million in the same period in 2012. For the first half of the year, CSAV’s net losses were $61.6 million, compared to a $345.5 million loss in the first half of 2012.
The Chilean line said it benefitted in the second quarter from the pre-payment of the debt the company had with American Family Life Assurance Co. (AFLAC), a benefit worth $74 million. The line didn’t specify how the pre-payment exactly resulted in what it dubbed “an extraordinary positive impact of $74 million.”
“The outcome is the result of a more efficient cost structure, together with better vessel utilization rates and a greater proportion of owned fleet, essential aspects for the new business model promoted by the company,” said CSAV Chief Executive Officer Oscar Hasbún. “Our strategy of generating economies of scale, reducing operational and financial costs, and developing key advantages in the trades we participate in, as well as a greater proportion of own fleet, has allowed us to consolidate a more competitive cost structure, which is consistent with the improvement of the results we are obtaining.”
Hasbún added that a further round of capital injection will be used to purchase seven 9,300-TEU vessels, and that those vessels, the pre-payment of financial debt and “the continuity of the company’s development plans” would allow CSAV to continue with significant improvements in its cost structure.
CSAV is the 20th largest carrier in the world by fleet capacity. - Eric Johnson