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Chelsea Logistics net loss jumps 92% in Q1
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Net loss hit P416 million from P217 million year-on-year
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Revenue from freight segment increased 23%, while passage revenue surged 124% due to the easing of travel restrictions.
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Bunkering cost grew due to fuel prices affected by the Ukraine conflict, consequently escalating cost of sales and services
Chelsea Logistics and Infrastructure Holdings Corp.’s (CLC) net loss jumped 92% in the first quarter to P416 million from P217 million year-on-year.
For the first quarter of the year, CLC and its subsidiaries generated consolidated revenue of P1.3 billion, up 13% compared with P1.15 billion recorded in the same period in 2021.
Revenue from the freight segment increased 23% to P762 million, while passage revenue surged 124% to P160 million due to the easing of travel restrictions.
Fuel prices continued to rise with the Ukraine conflict, pushing the group’s bunkering cost to P486 million, a 43% jump year-on-year. Consequently, cost of sales and services escalated by 7% to P1.22 billion, tempered by 25% lower depreciation and amortization cost to P287 million in 2022 due to the disposal of certain vessels in prior year and extended drydocking of some vessels.
Finance costs were up 22% to P333 million due to the finance lease take-up of MV Trans-Asia 21, delivered in May 2021.
READ: Trans-Asia’s RoPax newbuild hurdles sea trials
CLC achieved a significant reduction in operating loss to P83 million, 47% down from P156 million in 2021 on account of improved consolidated top line and continuous cost containment measures.
CLC president and chief executive officer Chryss Alfonsus Damuy said: “We believe that we have truly turned a corner in our operations with the strong year-on-year growth in our passenger segment. The strong 8.3% GDP growth rate in 1Q2022 supports our assertion. We remain cautiously optimistic as we try to maintain our cost structure despite significant increases in our fuel costs.”
Contactless payment
In a related development, three shipping lines under CLC are now providing passengers with contactless payment options as part of the group’s digitalization efforts.
The contactless payment for Starlite Ferries, Inc., The SuperCat Fast Ferry Corp., and Trans-Asia Shipping Lines Inc. bookings can be made through GCash, ShopeePay, and PayMaya, CLC said in a statement.
“The move to incorporate the use of digital payment systems started in March 2020 and back then we only had PayMaya. During the height of the pandemic, the need for cashless payments became a necessity to follow safety protocols,” Trans-Asia general manager Sheila Sy said.
Sy added the move helps increase sales and provide payment flexibility.
Trans-Asia inked a partnership with GCash in July 2021 and with Shopee recently.
Customers can also use their e-wallets for cashless transactions at main ticketing booths nationwide. In order to make the payment, passengers have to open their app of choice, scan the QR code displayed at the counter, enter the amount to pay, and confirm payment.
CLC said the landscape has shifted since the pandemic started, causing consumers to resort to electronic payment with cashless transactions emerging as the preferred mode of payment for consumers under the new normal.
“Chelsea Logistics aims to further expand its digital footprint and explore new systems that will give our customers seamless and hassle-free booking experiences. These contactless payments facilitate faster transactions and improve passenger experience while reducing the cost inefficiencies of cash for merchants,” said Starlite Ferries general manager Shane Arante.
CLC’s passenger fleet, composed of 22 roll-on/roll-off passenger vessels and nine fastcrafts, has a total gross revenue tonnage of 357,433 tons and a carrying capacity of 15,188 passengers.
CLC subsidiaries include Chelsea ShippingCorp.; Trans-Asia, Udenna Investments B. V.; Starlite Ferries, Worklink Services, Inc.; TASLI Services,Inc.; and The Supercat Fast Ferry Corp.
