Listed Lorenzo Shipping Corp. reported a 68.7% decline in net income to P9.504 million in the first half of 2014 compared with the P30.336 million recorded in the same period last year.
But revenue increased 3% to P979.916 million in the first six months of the year from P950.575 million due to a higher volume of co-loaded shipments, Lorenzo said in a disclosure to the Philippine Stock Exchange.
Other income decreased 269.57% to P9.673 million, down from P36.136 million largely on losses from the sale of a vessel in the second quarter of the year.
For the second quarter, Lorenzo recorded a net loss of P21.134 million after posting a net income of P23.079 million in the same quarter last year.
Revenue from April to June 2014 fell 7.5% to P464.337 million from P502.136 million in the same period earlier.
Lorenzo Shipping president Roberto Umali told PortCalls in June that income for the second quarter significantly declined as the effects of many transport and logistics issues like the Manila City truck ban began to be felt.
Due to the unpredictability of events in the industry, Lorenzo Shipping said it is “working closely” with its customers as it gears up to become an integrated logistics service provider by incorporating ancillary services like trucking. The firm has an affiliate trucking business with NMC Container Lines.
The company said capital expenditure for 2014 is P600 million.
For this year, Lorenzo Shipping replaced one of its vessels, MV Lorcon Zamboanga, with MV Lorcon Bacolod, a 14-year-old vessel equipped with two 40-ton cranes and with a capacity of 275 twenty-foot-equivalent units to maintain its fleet of seven vessels.
For its container re-fleeting program, Lorenzo bought 200 brand-new container vans, due for delivery this August, to meet the growing number of customers that require food-grade vans.
The company will also launch its e-commerce website before year-end after the site is synchronized with its SAIL system which was introduced in early 2013.
Consistent with its long-term goals, Lorenzo will be acquiring the container yard it is leasing in Bacolod, “considering the promising growth in the city as depicted in the 27% increase in volume since the start of operations in year 2000.”
The shipping line also transferred to a new and bigger container yard in Davao, forecasting similar volume growth in the region. – Roumina Pablo
Photo from www.lorenzoshipping.com
