Chilean ocean carrier CSAV earned $55.8 million in the three months through the end of September compared with a year-earlier loss of $342.8 million as a radical restructuring and higher freight rates combined to reverse seven consecutive quarters of losses.
The recovery was mainly driven by operating income of $37.3 million in the third quarter, compared with a $354.9 million loss in the same period in 2011.
The improved result was also positively influenced by a tax adjustment resulting from recently approved reforms, the company said.
“We are satisfied with the work done,” said CSAV Chief Executive Oscar Hasbun.” Thanks to the support of our shareholders, we have been able to carry out a deep change in our business model and today our efforts are being reflected in our results following a long period of losses.”
As part of the restructuring, CSAV reduced its containership capacity, increased joint ventures with rival carriers from 30 percent to 95 percent currently, and increased its owned fleet from 8 percent at the end of 2010 to 37 percent in the second half of 2012.
The company is continuing to work to improve its operational efficiency as the container shipping market, freight rates and oil prices remain unstable, Hasbun said.
“However, we believe that the result for this quarter reflects the impact of the deep restructuring implemented and shows that we have a sustainable long-term business model,” he said.