Financially ailing CSAV says it will seek a $1.2 billion capital injection in October after the Chilean ocean carrier sank deeper into the red in the second quarter.
CSAV blamed lower freight rates on most routes and high oil prices as it swung to a $333 million second quarter loss from a $69 million profit a year earlier. This bloated the first half loss to $525 million against a $30.4 million profit in 2010's first half. Revenue in the first six months rose to $2.95 billion from $2.48 billion.
CSAV, which forecast a “very significant” full-year loss, also is seeking a strategic ocean carrier partner.
The carrier will seek approval for a $1.2 billion share issue at an extraordinary shareholders meeting in Santiago on Oct. 5. Two large shareholders, Quinenco de los Luksic (18 percent) and Marinsa (20.2 percent) agreed to provide additional credit of $350 million through the end of the year. Quinenco will subscribe to $1 billion of new stock and Marinsa will buy another $100 million.
CSAV has been pruning its services in recent months to stem mounting losses and has struck vessel-sharing agreement with rival carriers including Geneva-based Mediterranean Shipping Co. and France’s CMA CGM.
The carrier cut its charter fleet by 100,000 20-foot equivalent units up to the end of August, according to industry analyst Alphaliner.
CSAV received a cash bailout of $770 million in 2009 from German shipowners that acquired a minority stake in the company in exchange for lower charter rates.
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