Americas News
Horizon Lines Shrinks Loss in Q2
U.S. domestic shipping company Horizon Lines reports it reduced its net loss year-over-year in the second quarter of 2013 as both fuel consumption and fuel prices fell.
The company reported a $900,000 net loss for the quarter, compared with a loss of $31.1 million in Q2 2012.
Revenues fell to $259.8 million from $270.9 million due largely to a reduction of sailings from Jacksonville, Florida and lower fuel surcharges.
"Horizon Lines second-quarter adjusted EBITDA 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.
"Second-quarter results demonstrate that we are executing on our plan to improve Horizon Lines' financial performance."
Vessel fuel costs fell 10.1 percent year over year to an average of $659 per metric tonne, while fuel recovery improved by $2.5 million due mostly to lower fuel consumption.
Horizon Lines is converting two vessels to dual-fuel systems using liquefied natural gas (LNG) as part of a larger plan to repower many of its vessels to reduce fuel use and lower emissions.
