Chelsea Logistics profit climbs 29% in H1

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Chelsea Logistics Holdings Corp. (CLC) posted a net income of P360 million in the first half of 2018, 29% higher than 278 million reported year-on-year.

CLC, in a statement, said the higher net income was brought about by the 77% increase in revenues to P2.720 billion from P1.537 billion in the previous year.

Revenues from shipping activities grew to P2.6 billion, up 67% from the same period last year. Under shipping, its tankers and tugs business saw a 37% growth in revenues, contributing P1.2 billion to the top line, while revenue from the freighter segment grew 97% to P855 million. Revenues from passage registered the highest growth at 116%, realizing P545 million over the same period.

CLC recorded P128 million in revenue from its logistics business, a 6% growth. Currently, logistics services account for 5% of the company’s consolidated revenues, while the shipping business remains the dominant contributor at 95%.

“To further enhance the contribution of our logistics business units, we recently broke ground on a 2.5-hectare land which will be the site of a warehousing facility at Brgy. Tipas, Taguig City. Upon completion, this new facility’s capacity will be approximately seven times bigger than the existing warehousing capacity of CLC through WorkLink Services, Inc.,” CLC president and chief executive officer Chryss Alfonsus V. Damuy said. CLC acquired WorkLink in 2017.

For the second quarter of 2018 alone, net income dropped 1.9% to P245.645 million from P250.462 million year-on-year.

As part of its continuous re-fleeting program, CLC said two new additional cargo freight vessels and one roll-on/roll-off and passenger (RoPax) vessel were launched in July this year through subsidiary Trans-Asia Shipping Lines, Inc.

The Philippine Competition Commission has earlier cleared CLC subsidiary Starlite Ferries, Inc.’s proposed acquisition of the entire shareholdings of Southwest Gallant Ferries, Inc. and Southwest Premiere Ferries, Inc., each of which owns one RoPax vessel.

To date, CLC, through its wholly owned subsidiaries, has 16 tankers, 14 tugboats, 22 RoPax vessels, 11 cargo ships, and one floating dock. Meanwhile, transport solutions company 2GO Group, where CLC has a 28.15% indirect economic interest, operates eight RoPax vessels, five cargo ships, and 11 fastcraft.