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Chelsea Logistics and Infrastructure Holdings Corp. (CLC) reported a 16% lower net loss and a 17% decline in revenue for the first half of 2021
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Revenues from the tankering and passenger segments were down year-on-year by 56% and 70%, but revenues from freight and logistics segments grew by 28% and 67%
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CLC said the movement of petroleum products and passengers remained low despite the gradual lifting of travel restrictions
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Cost of sales and services increased by 2%
Chelsea Logistics and Infrastructure Holdings Corp. (CLC) reported a net loss of P1.074 billion in the first semester of 2021, 16% less than the P1.286 billion loss in the same period last year.
Consolidated revenues for the six months of the year amounted to P2.130 billion, down 17% from P2.572 billion in the same period last year.
In a regulatory disclosure, CLC said the decline was primarily due to the full-period effect of quarantine restrictions imposed government since March 15, 2020.
The movement of petroleum products and passengers also remained low despite the gradual lifting of travel restrictions.
Revenues from the tankering and passenger segments were down year-on-year by 56% and 70%, respectively.
The decline in these revenues was, however, tempered by growth in freight and logistics revenues, which grew by 28% and 67%, respectively, from last year.
During the period, CLC recognized a P320 million other income after a co-loading contract with a customer during the first quarter was pre-terminated, and P154 million in gain from the sale of investment in stocks in 2GO Group, Inc. The group also took a lower share in net losses of an associate of P241 million in 2021 versus P487 million in 2020 as a result of the 2GO divestment.
READ: Chelsea Logistics sells total 2GO stake to SM group
CLC last March announced it agreed to sell its entire stake of around 31.73% in affiliate 2GO to SM Investments Corp. to avoid being impacted by 2GO’s losses and recover faster from the COVID-19 pandemic.
The group’s gross loss for the period January to June 2021 amounted to P146 million, a 144% overturn from a gross profit of P334 million in 2020.
CLC said that due to low demand, some of its ships were intentionally laid up, as operating passenger vessels were allowed just a maximum of 50% capacity as part of mandatory social distancing.
With this, revenues generated during the period were unable to cover fixed costs, such as depreciation and amortization, insurance, bunker fuel, salaries and wages for the minimum manning requirement, and port charges of the laid-up vessels.
The cost of sales and services also increased by 2% to P2.277 billion from P2.238 billion last year.
CLC earlier said it continued to assess and manage risks and other potential adverse impacts of the pandemic on the group’s business continuity. It said measures enforced included workforce rationalization, improved vessel utilization, enhanced revenue management, cost cutting, and suspension of uncommitted capital expenditure.
CLC subsidiaries include Chelsea Shipping Corp., Trans-Asia Shipping Lines, Inc., Udenna Investments B. V., Starlite Ferries, Inc., Worklink Services, Inc., TASLI Services, Inc., and The Supercat Fast Ferry Corp.
