Horizon Lines narrows quarterly loss despite 6pc fewer containers

Horizon Lines narrows quarterly loss despite 6pc fewer containers

HORIZON Lines has narrowed its second quarter net loss 33.5 per cent to US$9 million year on year as revenue declined 4.1 per cent to $259.8 million.

In the first half of 2013 the net loss amounted to $20.9 million, down from a loss of $57.9 million recorded in the first six months of 2012. First half revenue decreased 5.6 per cent year on year to $504.3 million.

"Horizon Lines second-quarter adjusted EBITDA (of $29.2 million) nearly doubled from the same period a year ago, driven largely by reduced vessel charter expense, lower dry-dock transit and crew-related expenses, lower fuel consumption, higher non-transportation revenue, reduced overhead and gains on the sale of assets," said president and CEO Sam Woodward.

"The positive factors driving adjusted EBITDA growth were partially offset by reduced container volume and increased vessel operating expenses," he said.

Container volume in the second quarter totalled 56,159 revenue loads, down six per cent from 59,768 containers for the same period a year ago. The container shipping line said the decline was primarily attributed to the reduced number of sailings between Jacksonville, Florida and San Juan, Puerto Rico.

Revenue per container totalled $4,263 in the second quarter, slightly down from $4,269 in the second quarter a year earlier. Net of fuel surcharges, second quarter revenue per container was $3,250, up 2.6 per cent year on year. Vessel fuel costs averaged $659 per tonne in the second quarter, 10.1 per cent below the average price of $733 per tonne in the same quarter of 2012.

Horizon said it expects full fiscal year revenue container volume, excluding the loss of revenue loads associated with the number of reduced sailings between Jacksonville and San Juan, and also rates, to be slightly higher than 2012 levels.