CSAV reported a loss of $96 million in the first quarter, compared to a loss of $205.2 million in the first three months of 2012.
This result includes a provision of $40 million that the board of CSAV decided to make to cover possible costs the company might have to incur as a result of the investigations into breaches of free-competition regulations in the car-carrier shipping business.
Oscar Hasbun, the chief executive officer of CSAV, said the company has shown a significant improvement in its cost
“The industry’s situation continues to show volatility as a
result of oversupply and global economic news, so as we have
anticipated, the year continues to be a challenge," said Hasbun. "Nevertheless, we
expect that the weak financial position of most of the industry players
will be a catalyst for permitting rates to recover from their present
level in the next quarters.”
He said a capital increase of $500 million approved last April will allow the company to finance the
purchase of seven 9,300-TEU ships, which will increase its own fleet
from 37 percent to 55 percent. With this investment, the company said its chartering costs will fall
further and additional savings will be achieved in fuel consumption.
The company said the additional capital will also allow the company to repay a $140-million loan from Banco Latinoamericano de Comercio Exterior (Bladex), which allowed CSAV to prepay a $258 million debt to the insurance company AFLAC at a 46-percent discount. That transaction produced a gain of $53.8 million, which CSAV said will be reflected in its second quarter financial results. - Chris Dupin