[060313.EN.SEA] CSAV On Track After Solid Quarterly Results, But Still Ends In Lodd

CHILE's Compania Sud Americana de Vapores (CSAV) has managed to record a fourth quarter operating profit of US$8.4 million, building on the positive results of the preceding quarter's operating income of $37.3 million.

Despite this, the world's 20th largest container shipping line posted a fourth quarter loss of $23.9 million, attributed mainly to the charge for discontinued operations of $20.3 million made over the period, a company statement said.

Yet the fourth quarter 2012 operating result represents a complete turnaround compared to the loss of $158.1 million registered over the same period a year earlier.

The company has completed its restructuring and will cease to pay further related costs. Its net earnings in the second half of 2012 amounted to $31.9 million, a marked improvement on the loss of $754.9 million booked during the same period in 2011 and of the $345.5 million loss suffered in the first half of 2012.

"The progress shown in earnings during 2012 is significant, even after adjusting for seasonal effects, as the second half of the year is usually better for this industry," said the CSAV statement.

Fourth quarter 2012 revenues came to $774.7 million compared with $1 billion during the same period last year. This was attributed to a 23.7 per cent year-on-year drop in container volumes, partially offset by a 9.9 per cent increase in freight rates prompted by its departure from the Asia-Europe, transpacific and intra-Asia container trades.

Its South America services accounted for 75.8 per cent of total freight transported in the fourth quarter, up from 64.3 per cent in the fourth quarter of 2011.

"The results reflect an improvement in market conditions and, to a large degree, the effects of the operational, financial and corporate restructuring imposed by the company since 2011 which, among other measures, contemplated a reduction in containership carrying capacity, an increase in joint operations, which passed from 30 per cent to close to 95 per cent, the increase in own fleet and a new organisational structure. The charge to results from discontinued operations in the fourth quarter of 2012 is the last in the restructuring process," said the company statement.

Source : HKSG.