CSAV in the black in the second quarter

Chile’s largest shipping company reported net income of $34.3m during the second quarter of 2013, a figure that compares favourably with losses of $140.2m recorded during the same period of 2012, the company said in a statement.

The profit of the second quarter of 2013 includes an extraordinary gain of $74m, mainly explained by the pre-payment of the debt the company had with American Family Life Assurance Company (AFLAC).

The positive outcome is the result of a more efficient cost structure, together with better vessel utilisation rates and a greater proportion of owned fleet, essential aspects for the new business model promoted by the company, said CSAV ceo Oscar Hasbun. At the same time, Hasbun highlighted the progress shown by the company in the last quarter in a scenario in which freight rates remained lower than historical levels and bunker prices were still high.

“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,” he added.

Hasbun said the company’s next capital injection, which will be used to purchase seven vessels of 9,300 teu and the pre-payment of financial debt and the continuity of the company’s development plans, will allow CSAV to continue with significant improvements in its cost structure.

In a Board of Directors meeting this Wednesday, CSAV agreed on the mechanism that will set the placement price of the shares of the $500m capital increase approved last April. However, if the expected amount is not raised by placing 6.75bn shares, CSAV’s Board of Directors shall evaluate calling for a new capital increase to complete the $500m approved by the extraordinary shareholder’s meeting of 29 April 2013.

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