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Chelsea Logistics and Infrastructure Holdings Corp. incurred a net loss of P1.492 billion in the first nine months of 2022, down 32% year-on-year
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Revenue grew 41% driven by the easing of COVID-19 pandemic-related protocols that resulted greater movement of goods and passengers during the period
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All revenue segments reported year-on-year and quarter-on-quarter improvement
Chelsea Logistics and Infrastructure Holdings Corp. (CLC) incurred a net loss of P1.492 billion in the first nine months of 2022, down 32% from year-on-year losses of P2.204 billion.
In a regulatory disclosure, CLC noted that January to September 2022 was “a recovery period from the COVID-19 crisis” with the lower net loss.
Consolidated revenue for the first nine months amounted to P4.630 billion, a 41% upsurge from P3.272 million posted in the same period last year.
The growth was driven by easing of COVID-19 pandemic-related protocols that bumped up movement of goods and passenger volume during the period. All revenue segments reported year-on-year and quarter-on-quarter improvement.
Revenue from passengers was up more than six times to P887 million from P180 million while freight revenue grew 20% year-on-year to P2.441 billion.
Revenue from the logistics segment increased 23% to P402 million, coming mostly from the upturn in revenue of its warehousing, distribution and trucking segments, and from its new business line, e-commerce.
Tugboat service revenue advanced 28% to P305 million from P238 million with the increase in the number of vessel movements, notably in its Davao operations, as well as with the implementation of rate increases.
Tankering revenue amounted to P506 million, a 13% hike from P60 million in 2021.
CLC said its shipping segment implemented rate increases to partially cover the increasing cost of fuel. Bunkering cost was at P1.861 billion or 75% higher than last year’s P1.066 billion due to increasing fuel prices in the current year and an increase in the number of sailings.
Consequently, cost of sales and services escalated by 19% to P4.276 billion in the first nine months of 2022 from P3.586 billion in the same period in 2021.
CLC president and chief executive officer Chryss Alfonsus Damuy, in a statement, said: “The implementation of our recovery plans continues to bear fruit as shown by the third quarter results with all segments reporting positive revenue growth both on year-on-year and sequential bases, leading to a reduction in net losses. As by nature, the shipping industry is a high CAPEX [capital expenditure] business, fixed costs account for a huge portion of operating costs. Thus, with the continued significant growth in revenue, the Company will soon outpace these costs. We will continue to build on this positive momentum to bring all our revenue segments back to pre-lockdown levels as soon as possible.”
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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