Chilean owner CSAV has plunged to a bigger loss in the second quarter following the merger of liner operators Hapag-Lloyd and United Arab Shipping Co (UASC).
The net deficit to 30 June was $179m, from $32.6m in 2016, despite revenue rising to $32.8m from $30.1m the year before.
The first-half deficit of $201m included an accounting loss for dilution of $167m following Hapag-Lloyd's UASC combination in May. CSAV had previously merged its boxship operations with Hapag in exchange for a major stake in its partner.
There was also a tax bill of $25.1m in Chile, mainly associated to the euro appreciation due to the "intragroup financing structure" with its subsidiary in Germany.
Following the Hapag deal, the remaining car carrier and logistics businesses logged first-half earnings of $2.9m, which represents an improvement of $8.3m compared to 2016.
Car volumes rose, as did vessel utilisation, and the fleet structure was more efficient.
Looking ahead, the company said car sales should continue to grow in local markets this year. Buses and trucks have also shown an upturn in 2017.
CSAV said cost and efficiency programmes have helped to reduce the cost structure of the car carrier operations, partially compensating the significant freight rate decrease in the past years.
"The positive effect of those measures, seen from [the second quarter of] 2016 onwards, will continue to offset the impact of the current negative freight rate conditions during 2017," the company added.
"However, and due to a difficult operating environment, rising from weather conditions in the coast of South America and in the ports activity, we have had an increased pressure in the cost structure."
