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Chelsea Logistics logged a net loss of P324 million in the first quarter of 2023, a 22% decrease from the P416 million net loss in the same period in 2022
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Revenue for the first three months of the year grew 31% on increasing demand driven by the easing of strict pandemic restrictions
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Both cargo and passage revenues reported positive year-on-year growth in the first quarter of 2023
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For 2022, the company reported a 35% reduction in consolidated net loss in 2022, from P3.905 billion in 2021 to P2.527 billion
Chelsea Logistics and Infrastructure Holdings Corp. (CLIHC) losses slowed in the first quarter, with the company logging a net loss of P324 million, a 22% decrease from the P416 million loss posted year-on-year.
Revenue for the first three months of the year grew 31% to P1.7 billion from P1.3 billion on increasing demand driven by the easing of strict pandemic restrictions, giving much-needed stimulus to the economy.
CLIHC said its improved financial performance came from a combination of a substantial increase in revenues as well as the continued strict enforcement of cost-containment measures, the group said in a statement.
CLIHC said the first quarter is seasonally seen as the weakest period in the year, but that the 31% increase in revenues is the largest first quarter revenue figure since the lockdown in March 2020, and 7% higher than the P1.599 billion revenues reported in the first quarter of 2019 prior to the pandemic.
“However, the Group has yet to achieve its anticipated economic and business recovery in 2023 even as it continues to work on bringing back to trading status one vessel at a time from laid-up status or extended drydocking during the pandemic,” CLIHC said in a separate regulatory disclosure.
Both cargo and passage revenues reported positive year-on-year (Y-o-Y) growth in the first quarter of 2023.
Passage revenue climbed 155% Y-o-Y to P407 million owing to the increase in passenger volume and in average ticket rates that were implemented to cover for the rising fuel prices. Related revenues from the sale of goods likewise increased by 64% to P50 million.
CLIHC said passage revenues in the first quarter of 2023 were already higher than the P413 million reported in the first quarter of 20202 prior to the nationwide lockdowns.
Cargo revenues rose 9% Y-o-Y to P883 million and remained the biggest revenue contributor of the group accounting for 52% of the total, albeit down from 60% in the same period last year due to the strong and consistent recovery of the passage segment. CLIHC said cargo volume handled during the first quarter increased but was limited in its growth by vessel and container van availability issues.
Total charter fees, cushioned by the full quarter effect of charter revenues of subsidiary Supercat this period, rose by 5% to P162 million in 2023 despite the slight dip in tankers’ group’s revenues caused by the change in contract mix which was intended to achieve consistent revenue stream for the company.
Tugboat revenue grew to P86 million, owing to the increased number of movements in the current year at all locations.
The logistics segment, on the other hand, reported a slight dip to P120 million revenues for the first three months of the year.
Cost of sales and services, meanwhile, rose by 18% to P1.442 billion from P1.219 billion.
“As we continue to keep a close eye on our costs and grow our revenues in line with a recovering economy, we will shortly return to profitability, probably sooner than later,” CLIHC chief financial officer Ignacia Braga IV said.
2022 revenues
For 2022, revenues grew 44% to P6.433 billion, reversing a 4% year-on-year contraction. The company also reported a 35% reduction in its consolidated net loss in 2022, from P3.905 billion in 2021 to P2.527 billion.
The freight segment in 2022 rose on the growing demands of various sectors, particularly construction, manufacturing, and retail business. The freight segment delivered a 24% year-on-year (Y-oY) growth with P3.4 billion revenues.
Despite sky-high rates due to general inflation, subsidiary Starlite Ferries loaded 246,986 rolling cargoes in 2022, 40% higher compared to the previous year, while Trans-Asia Shipping Lines, Inc. transported 73,538 twenty-foot equivalent units.
The improved performance of the passage business also contributed significantly to the recovery of the group.
Starlite Ferries, Trans-Asia, and SuperCat Fast Ferry carried more than 1.8 million passengers in 2022, a 165% increase from 686,096 passengers in 2021. The number of trips also grew 11% Y-o-Y to 13,191.
The passage segment now contributes 19% of the total revenue, from a 7% share in the previous year, capping 2022 with P1.2 billion, or an increase of more than six times Y-oY. Passage-related sale of goods likewise grew by 137% Y-o-Y to P115 million.
The tanker segment continued to serve its charterers, which CLIHC said had become more active in trading their goods and services with the economy’s reopening. The tanker business recorded a 97% increase in the total volume of liquid shipped to 675 million liters in 2022 from 343 million liters in 2021. As a result, charter revenue grew by 30% to P718 million in 2022.
Although the tugboat segment faced several challenges last year, including the decrease in the number of foreign vessel arrivals in its ports of operations and the temporary downsizing of operations of a major customer in Batangas, its revenue still moved up to P424 million, 29% higher Y-o-Y.
The group’s logistics and distribution arm, Worklink Services, Inc., also showed substantial improvements, completing 405,239 deliveries in 2022, up by 29% Y-o-Y.
In 2022, Worklink launched its last mile courier service, a participation in the fast-growing e-commerce business in the country. By the fourth quarter of last year, Worklink had inked a deal with two of the country’s leading e-commerce service platforms.
Revenue from the logistics segment grew 6% to P552 million.
CLIHC 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; TASLI Services, Inc.; and SuperCat.
