Tuesday, September 20, 2011

CSAV posts first half loss of US$525 million, looks to partnership


CHILEAN carrier CSAV recently announced a net loss of US$525 million in the first half of 2011, having made continuous losses for three years in a row since 2008, totalling $1.05 billion.

Searching for way back to profitability, the carrier said it was looking for a "strategic" shipping partner, but provided no details. Additionally, it has curtailed 20 per cent of its capacity in the past six months to cut costs.

CSAV's operating loss topped $567 million, showing a sharp downturn from $51 million profit recorded in the first half last year. It recorded an operating loss of $369 million in the second quarter, the worst performance in the company's history.

Facing the need for financing, CSAV said it plans to raise its equity by $1.2 billion, reported Paris-based analyst Alphaliner, adding that the carrier bears some financial burden of $1 billion for buying seven 8,000-TEU and two 6,600-TEU vessels between 2010 and 2012.

In the past two months, CSAV announced joint services with MSC and CMA CGM, which are expected to help reduce the losses in future, but for now the carrier forecasts full-year serious losses.

As part of re-structuring, CSAV is keen to separate its shipping business from the vessels and cargo maritime services business run by its subsidiary SAAM. It attempted to let SAAM go public earlier this year with up to 49 per cent initial public offering, but no further progress has been made since.

source: Shippingazette.com / picture: google.com