Chile: shipper CSAV records US$1.24B loss for 2011
Chilean shipper Compañía Sud Americana de Vapores (CSAV) has recorded a US$1.239 billion loss for the 2011 calendar year, following a 24% year-on-year rise in sales costs and a 1% fall in revenue.
The heavily indebted company appears to still be in the recovery stage following a family stoush-fuelled corporate shakeup 11 months ago, after the company's market capitalization fell by more than US$1 billion on the Santiago Stock Exchange.
In a recent update, CSAV attributed the results to a negative global economic situation in terms of demand growth, particularly in developed countries, rising fuel prices, a growing oversupply in the shipping sector and prevailing strong competition throughout the year, which meant freight rates fell below a reasonable level.
The company said that since that last trimester in 2010 it had suffered both in terms of results and liquidity, with net cash falling by US$350 million last year.