Chelsea Logistics and Infrastructure Holdings Corp. (CLC) lost P3.312 billion in 2020, an almost three-fold increase from its P832 million net loss in 2019
Revenues last year sank 35% as revenues from its business segments, except tugboats, all recorded decreases
CLC continues to assess and manage risks and other potential adverse impacts of the pandemic on the group’s businesses
Chelsea Logistics and Infrastructure Holdings Corp. (CLC) posted a net loss of P3.312 billion in 2020, an almost three-fold increase from the P832-million net loss registered in 2019 as revenues plummeted due to COVID-19’s effects on operations.
Revenues last year sank 35% to P4.679 billion from P7.220 billion in 2019, CLC said in a regulatory disclosure.
CLC said January and February 2020 “promised a record performance” for the group with operating units achieving their revenue targets. But quarantine restrictions which started in March impacted operations and “negatively affected the Group’s results in the operating period.”
CLC said community quarantines resulted in travel restrictions via land, sea and air transport that caused cargo volume to drop considerably in the first two and a half months of the enhanced community quarantine (ECQ) period. The group’s operations slightly improved with the gradual lifting of restrictions but operating results were still far from pre-pandemic levels.
Travel limitations due to quarantine restrictions brought passage revenue down 65% to P501 million in 2020 from P1.423 billion in 2019. Passenger traffic steadily declined from March 2020 and hit zero level during periods of complete lockdown. To date, passage has yet to recover to pre-COVID levels, CLC noted.
Tankering revenues decreased 41% to P1.165 billion from P1.983 billion due to a reduction in the movement of petroleum products in 2020.
The group’s freighter segment also suffered a significant volume drop during the ECQ period and “is now in the recovery phase with cargo movement increasing in the market starting in the latter part of the second half of 2020.” Freighter revenues dropped 22% to P2.097 billion in 2020 from P2.688 million in 2019.
Tugboat revenues, on the other hand, increased by 4% to P351 million from P338 million.
Total costs of sales and services decreased 5% to P5.298 billion in 2020 from P5.589 billion in 2019.
CLC said it continues to assess and manage risks and other potential adverse impacts of the pandemic on the continuity of the group’s businesses. It earlier 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 signed agreements to sell its entire stake of around 31.73% in affiliate 2GO Group, Inc. to SM Investments Corp. CLC president and chief executive officer Chryss Alfonsus Damuy said that with the divestment, CLC will not be impacted by 2GO losses, “which will aid the company in recovering from the current COVID-19 pandemic.”