Chelsea Logistics cuts group net loss 35% to P2.5B

Photo from Chelsea Logistics.
  • 2022 consolidated net loss cut 35% to P2.53 billion from P3.91 billion in 2021
  • Chelsea Logistics and Infrastructure says “substantial” revenue growth eased the impacts of the Covid-19 pandemic and rising fuel prices
  • 44% growth in revenue was driven by significant growth across all segments

Chelsea Logistics and Infrastructure Holdings Corp. (CLIHC) cut its group net loss by 35% to P2.53 billion in 2022 from P3.905 billion net loss in 2021.

“The double blow of the lingering effects of Covid-19 outbreak and rising fuel prices hampered the anticipated economic and business recovery of the group during the year,” CLIHC said in a regulatory disclosure on April 17.

CLIHC said “substantial improvement” in revenues alleviated effects of the pandemic and rising fuel prices.

In a separate statement, CLIHC said its performance in the last quarter of 2022 increased its annual revenues significantly, leading to lower operational and net losses as well as its first gross profit in the past three years.

Revenues in Q4 2022 grew 51% year-on-year and 5% quarter-on-quarter to P1.8 billion, boosted by strong year-on-year increases from the freight, passage and tugboat segments. Passage revenue growth was particularly strong, rising 198% y-o-y to P338 million from P113 million a year ago and up 11% q-o-q.

As a result, revenues for full-year 2022 grew 44% to P6.43 billion, reversing a 4% y-o-y fall in 2021.

CLIHC said the growth was driven by significant increases across all segments.

Passage revenue rose to P1.23 billion, up 318% from P293 million in 2021, as CLIHC realized higher passage volume and rates. Passenger volume soared 174% to 1.87 million passengers during the period.

Freight revenue continued to grow, posting a 24% expansion to P3.38 billion. The chartering and tugboat segments each contributed 30% topline growth, generating P718 million and P424 million, respectively.

CLIHC said the positive results of the shipping segment were attained despite vessel availability issues that were resolved by deploying ships on profitable routes and managing the drydock schedules of vessels to ensure their immediate return to the trade.

The logistics segment’s revenue contribution rose 7% y-o-y to P552 million, as an increase in vessel, truck and warehouse utilization softened lessened the impact of rising fuel prices in 2022.

CLIHC said the sustained revenue improvements, along with continued strict enforcement of cost-containment measures throughout the year, enabled the group to report its first gross profit in three years of P763 million versus a P439 million loss in 2021.

Operating expenses in 2022 grew only 2% to P1.114 billion, considerably lower than the 44% increase in annual revenues, reducing operating loss by 80% from P1.93 billion to P393 million.

“Our strategy remains unchanged – to enhance and grow our topline while continuously improving our cost structure. As the economy bounces back, we also look forward to returning soon to pre-pandemic levels of financial performance,” CLIHC president and chief executive officer Chryss Alfonsus Damuy said.

CLC is the shipping and logistics arm of the Udenna Group of Companies. Its subsidiaries currently include Chelsea Shipping Corp.; Trans-Asia, Udenna Investments B. V.; Starlite Ferries, Worklink Services, Inc.; TASLI Services, Inc.; and SuperCat.

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