CHILE's Compania Sudamericana de Vapores (CSAV) reversed from a second quarter year-on-year loss of US$140.2 million to make a net profit of $34.3 million, posting its second quarterly gain since the Luksic Group took over the shipping line in 2011.

The second quarter profit includes an extraordinary gain of $74 million, explained by the pre-payment of the debt the company had with American Family Life Assurance Company (AFLAC).

Chile's biggest shipping company attributed the result of a more efficient cost structure, together with better vessel utilisation and a greater proportion of an owned fleet.

CSAV chief executive Oscar Hasbun stressed how the company had made these gains in the face of a weak freight market and high bunker prices.

"Our strategy of generating economies of scale, reducing operational and financial costs, and developing key advantages, as well as a greater proportion of an owned fleet, has allowed us to consolidate a more competitive cost structure," he said.

Mr Hasbun said the company's next capital injection, expected to come from a $500 million share sale, would go purchasing seven ships in the 9,300 TEU range and well as paying down debt.