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