CP Ships Announces 2Q Results

Friday, July 26, 2002
CP Ships Limited announced an unaudited operating income for second quarter 2002 of $21 million. This was $18 million lower than the same period last year, but a $27 million improvement from the $6 million operating loss in first quarter 2002. Net income for the second quarter 2002 was $16 million compared to $35 million in the same period in 2001 and basic earnings per share was 20 cents compared with 40 cents. "Given difficult market conditions, which lead many of our competitors to sustain losses, we consider our second quarter $21 million operating income to be an excellent result," said CP Ships' CEO Ray Miles. Volume at 498,000 teu, a record for the second quarter, was up 6 percent from the same period last year. The decline in average freight rate during the second quarter slowed to 2 percent, following a 7 percent decline in the first quarter from fourth quarter 2001. However, average freight rate was down 14 percent from second quarter last year. EBITDA was $41 million and cash from operations before restructuring and spin-off payments was $27 million in the quarter. Operating income for the first half 2002 was $15 million compared with $70 million in the corresponding period last year. Net income was $5 million compared with $60 million. During the second quarter, CP Ships announced the acquisition of Italia di Navigazione for $40 million. The transaction is the continuation of a key element of CP Ships' overall strategy of making acquisitions to strengthen its regional market positions, build trade lane economies of scale and create new opportunities for growth. On 24th July regulatory approval was received and closing is expected in early August. At the end of May, CP Ships announced its plan to raise capital in the equity and debt markets to provide greater financial flexibility and additional liquidity for future growth. Despite difficult financial market conditions, the transactions successfully completed in early July with the issue of 9.6 million common shares for $95 million and $195 million from ten-year unsecured senior notes. In June, the Lykes Ranger, first in a series of five new geared containerships ordered under the four-year $800 million ship replacement program, entered service on schedule in the Asia-Americas trade lane. The previously announced 2002 annualized cost reduction target of $100 million remains on course and is likely to be exceeded. The ship fleet reduced from 78 on March 31, to 73 on June 30
Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Cost to Fuel Ships Falls

For a ship that burns 24 tonnes of fuel per day while steaming, fuel costs are reduced by as much as $1 million a year if current price level stay put. Assuming

Asia Tanker, VLCC Rates Could Climb

Charterers to release 30 Middle East VLCC cargoes next week. VLCC market buoyed by upbeat Suezmax, Aframax sectors. Rates for very large crude carriers (VLCCs)

Belgian Strike to Impact Antwerp Port

A strike in parts of Belgium on Monday is expected to disrupt rail services and one of Europe's largest ports as trade unions and workers voice their anger over

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1236 sec (8 req/sec)