CSAV posts net 2011 loss of US$1.24 billion, revenue falls 1.2pc

CHILEAN shipping major CSAV, the world's 17th largest carrier, posted a loss of US$1.25 billion in 2011 down from a $182 million profit in 2010 with an operational decline of $959 million and 1.2 per cent fall in revenue to $5.15 billion.

In the fourth quarter, the carrier lost $145 million on operations, posting a $280 million loss on discontinued operations with a $205 million provision for losses to be incurred in 2012 as a result of a restructuring started last May.

CSAV has announced it intends to make its SAAM terminal, tug and logistics businesses into a separate company. Its SAAM unit's operating profit was up 15 per cent to $64 million in 2011 with a 18 per cent rise in revenue to $426 million.

Also, the company has undertaken a second shareholder stock offering which helps the carrier secure additional $1.2 billion capital.

"We are a new company today," said the carrier's general manager for shipping containers Oscar Hasbun. "Through this restructuring we are better prepared to face the scenario affecting the industry and on a better footing for benefiting when market conditions improve."

CSAV said 90 per cent of its operations are joint services, compared with 30 per cent in early 2011. It has been returning chartered ships and building its self-owned fleet to exceed 30 per cent in the second half of the year from nine per cent at the outset of 2011.

source: Shippingazette [dot] com

CMA CGM posts $30m loss in 2011

CMA CGM, the third largest shipping company after Maersk and MSC, reported a consolidated net loss of US$30 million loss last year in a challenging market environment.

EBITDA stood at US$711 million, down from 2010, a year in which the entire container shipping industry reported record profits.

The group reported revenue of US$14.87 billion for 2011, a four percent increase on 2010. Volumes carried increased by 11 percent, outperforming the market’s 6.5 percent increase and reaching a record high of more than 10 million TEUs.

The market environment was challenging, shaped by overcapacity and the steep run-up in oil prices, with per-tonne bunker prices soaring 34 percent over the year, the company stated, nevertheless CMA CGM enjoyed a satisfactory operating performance.

CMA CGM continued to dispose of non-strategic assets during the year. It also strengthened its balance sheet by issuing $500 million in ORA equity notes to the Yildirim Group and raising an aggregate $945 million through two bond issues denominated in dollars and euros.

Although the beginning of 2012 was difficult for the entire industry, freight rates are now trending upwards, especially outbound Asia. Several shippers, including CMA CGM, have announced and are introducing significant rate increases as from March 1.

In addition, to enhancing its operating performance, the Group plans to:
– Continue implementing operating partnerships with MSC on the Asia-North Europe and South America lines and with Maersk on the Asia-Mediterranean, Adriatic and Black Sea trades.
– Deploy increasingly efficient, modern and cost-effective vessels on every trade.
– Develop more innovative, high-quality information technology services thanks to the new strategic partnership with IBM.

CMA CGM is pursuing its cost reduction plan, which is expected to deliver $400 million in savings this year. In the same way, the decline in charter rates will reduce operating costs by $80 million in 2012.

Thanks to all these measures, the group expects to report a profit in 2012, in a market that is difficult to predict given the scheduled arrival of a large number of new vessels and further increases in bunker costs.

The group remains confident in the future of the industry and will continue to strengthen its positions, particularly in Russia, India, Latin America and Africa, as well as in the reefer segment.

Commenting on the results, Rodolphe Saadé, CMA CGM group executive officer, said: “Once again this year, CMA CGM has demonstrated its strong resilience at a time of intense turmoil in our industry. Our operating and financial performances were among the best in the industry. We set up strategic operating partnerships with MSC and with Maersk to address market challenges and maintained our commitment to controlling costs. We expect the market to improve in 2012, particularly in the second half.’’

source: shippinggazette.com / picture: google.com

Susi Air will open a dozen new flight routes

The pioneer Airline, PT Asi Pudjiastuti aka Susi Air, plans to add dozens of new flight routes in Java, Kalimantan and East Indonesia.

Among the flight route to be opened it is, Cilacap-Yogyakarta, Cilacap-Semarang, Jakarta-Cilacap and some other routes across Jayapura.

In addition, there will be a flight route to Samarinda, East Kalimantan and Ketapang, West Kalimantan. Susi Air expansion is done after the company won the tender for subsidized routes in two aviation unit locations namely Samarinda and Ketapang.

Susi Pudjiastuti, Susi Air's chief executive officer said, adding the route taken to reach customers who want to travel to remote areas is still difficult to reach during flight access.

"We can not tell when to begin operating this new routes," said Susi. In addition, Susie is also reluctant to mention his business revenue last year and the target next year.

Besides doing business, Susi claimed that the opening of the new flight route for her devotion to the area. "Honestly, for the Java route I only do because of the dedication, not for profit," she said.  Although Susi claimed its difficult of running a airline business pioneer, but the aviation industry in Indonesia confident it will grow.

In order to open up new routes, Susi Air intends to add 15 aircraft types Cessna Grand Caravan this year. In addition she plans to buy a helicopter. About the addition of this fleet investment, Susi estimates an investment of U.S. $ 100 million to be obtained from bank loans.

Until the next three years, Susi intends to buy 33 aircraft with a count value of an investment of U.S. $ 300 million. In addition to relying on bank loans, Susi also open up opportunities for private investors to make the purchase.

Susi Air prefer to buy new planes with bank loans or private investors, rather than hiring a plane to meet operational needs. "If we rent, then the loss calculation. Due and leasing costs, far greater than buying new aircraft, "said Susi.

Maersk Line's new CEO Soren Skou cries 'slow down - we're destroying shareholder value'

THE container shipping business is consistently destroying shareholder worth and wishes to rein back fleet growth to enhance returns, says Maersk Line's new CEO Soren Skou.

Mr Skou, who took over in mid-January, created the comments in London shortly once parent company, AP Moller-Maersk, announced a internet loss of US$537million from its container activities division in 2011, against a $2.64 billion internet profit the previous year.

Nils Andersen, AP Moller-Maersk's chief govt, has accepted that Maersk helped to accelerate last year's industry-wide fall in rates by introducing a daily service from the most Asian ports to the most northern European gateways, reported London's money Times. The Daily Maersk service significantly increased ship capability on key trade route at a time of already weakening demand.

But Mr Skou said Maersk had captured enough market share to fill the additional capability and currently required to enhance profitability.

"We we have a tendency tore notably happy to envision the uptick we have a tendency to had in volume once we launched," he said. "On the degree, we're where we want to be so as to be competitive. currently it's concerning attempting to induce higher paid."

Mr Skou noted that ocean liners had achieved, on average, operating profit margins of simply 2 per cent over the past seven years and solely earned "acceptable" margins of twelve per cent in 2010.

The new chief govt, who was previously CEO of Maersk's tanker division, refused to mention what level of returns the business ought to obtain, however said: "What I will say is that, unless we have a tendency to get business returns up to eight or 9 per cent, we're undoubtedly destroying shareholder worth."

The Danish shipping cluster might do nothing to manage the reaction of the opposite carriers to the speed slump, however would defend its market share if necessary by cutting costs, Mr Skou said.

But the shipping line would aim this year to grow by solely the 3 to four per cent annual rate given the anticipated for demand to ship containers. The carrier has already cut capability on its Asia to Europe services 9 per cent in an endeavor to come back to profitability.

He denied, however, that the shift represented a wholesale modification of strategy. "In the last few years, so as to be ready to provide, among different things, Daily Maersk, we've got been growing considerably faster than the market," Mr Skou said. "The huge modification is basically in our growth aspirations."

picture: google.com