Home » Maritime, Ports/Terminals » Chelsea income soars 326% in Q1 as all units turn in profit

The growth was primarily due to its expansion programs and optimization of synergies between operating entities within the group. Photo from http://www.chelsealogistics.ph.

Chelsea Logistics Holdings Corp. (CLC) reported a net income of P115 million in the first quarter of 2018, which is 326% higher than the P27 million it earned in the same period in 2017.

CLC, in a regulatory disclosure, said the growth in net income was primarily due to its expansion programs and optimization of synergies between operating entities within the group. In addition, the group recognized an equity share of P11 million from the net income of transport solutions company 2Go Group, Inc., where CLC has a 28.15% indirect economic interest.

The group generated P1.2 billion in revenue for the first quarter of 2018, or 39% higher than the P350 million revenue recorded in the same period last year. CLC said the improved profitability was a result of the consolidation of acquired subsidiaries Worklink Services, Inc. and Starlite Ferries, Inc. in November 2017.

CLC said each business segment of the group showed robust growth and improved profitability during the period in review. The freight segment increased revenues 81% to P490 million from P270 million during the same period in 2017 after acquiring three freighters in November 2017.

Revenues from chartering rose to P307 million from P262 million as a result of higher freight rates charged for more distant port calls.

Revenues from the passage segment likewise grew, up 14% to P218 million from P192 million, attributable to the operations of MV Starlite Eagle that started commercial operations in April 2017, plying the Roxas-Caticlan route.

CLC said tugboat fees improved 30% in the first three months of 2018 to P83 million from P64 million, primarily due to additional customers acquired during the last quarter of 2017.

Chelsea Shipping Corp. (CSC), the tanker and tug business subsidiary of CLC, saw 60% growth in revenues, contributing P522 million to the top-line for the first quarter of the year, CLC said in a statement.

To date, CSC has a fleet of 12 tankers and four barges, including a medium-range tanker received in April 2018 that is expected to support, beginning third quarter of the year, the logistics requirements of local oil companies that import various petroleum products from the region.

Trans-Asia Shipping Lines, Inc., the subsidiary handling passenger and cargo operations in Cebu, generated P370 million revenues, 28% higher than in the first quarter of 2017.

Currently, Trans-Asia owns eight roll-on/roll-off passenger (RoPAx) vessels and seven cargo vessels, the fleet including three newly acquired vessels that were delivered last April. The newly acquired RoPax and two cargo vessels are expected to be operational by July 2018.

Starlite—which CLC bought in 2017—saw 33% higher contribution to the group’s revenue at P241 million. In March 2018, Starlite re-launched its brand with “Adventure starts, when you step into Starlite.” MV Archer–one of Starlite’s 14 RoPax vessels—recently started servicing the Matnog, Sorsogon-Allen, Northern Samar route.

On the logistics side, WorkLink is now providing customized solutions to a number of local dermatological clinics, in addition to its existing fast-food chain customer base. During the first quarter, WorkLink reported P58 million in revenues.

“We are pleased with the Group’s performance as of the first quarter of 2018. Further, with the anticipated influx of passengers during the summer season and increase in cargo movements towards the end of the year in preparation for the Christmas holidays, we are confident that we can sustain the growth in revenues and earnings of the Group during the succeeding quarters,” CLC president and chief executive officer Chryss Alfonsus V. Damuy said.

Currently, CLC has 15 tankers, eight tugboats, 21 RoPax vessels, and four cargo ships.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

 

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