Chelsea Logistics reported a net loss of P218 million in the first quarter of 2021, a 37% decline from the P345 million net loss in the same period last year
The group’s revenue decreased 28% as passage, tankering, and tugboat fees declined
Freight revenues grew 20% due to higher volume and average freight rate
Chelsea Logistics and Infrastructure Holdings Corp. (CLC) reported a net loss of P218 million in the first quarter of 2021, a 37% decline from the P345 million net loss registered in the same period last year.
The decline in net loss was due to reduced financing costs, which fell by P78 million or 22% as a result of loan restructuring, share in the net loss of an associate, and recognition of P320 million in other income from a pre-terminated co-loading contract, CLC said in a regulatory disclosure.
The group’s revenue decreased 28% to P1.154 billion in the first quarter of this year from P1.613 billion in the same quarter in 2020.
Revenues from freight grew 20% to P618 million from P517 million in 2020 due to higher volume and average freight rate. CLC noted that travel restrictions were gradually lifted in the first quarter of this year, allowing roll-on/roll-off, passenger (RoPax) operations.
Passenger revenue, however, remained low at P71 million in 2021, 83% down from P413 million in the first quarter of last year.
Other revenues likewise dropped by 76% due to the decrease in passengers and trips.
Tankering revenue declined 40% in the first quarter of 2021 year-over-year due to reduced movement of petroleum products by customers from the petroleum, airline, and power industries.
Tugboat fees likewise fell by 13% to P75 million from P86 million due to the regulated entry of foreign vessels in some ports.
Total costs of sales and services, meanwhile, were reduced by 9% to P1.144 billion from P1.256 billion as a result of operating vessels, especially RoPax ships, running at low load factor, as well as the intentional lay-up of some of the vessels to adjust to low passenger volume and to reduce operating expenses.
CLC earlier said it continued to assess and manage risks and other potential adverse impacts of the pandemic on the continuity of the group’s businesses. It said measures enforced included workforce rationalization, improved vessel utilization, enhanced revenue management, cost cutting, and suspension of uncommitted capital expenditure.
CLC last March also announced it agreed to sell its entire stake of around 31.73% in affiliate 2GO Group, Inc. to SM Investments Corp. so that CLC would not be impacted by 2GO’s losses and could recover faster from the current COVID-19 pandemic.