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Chelsea Logistics and Infrastructure Holdings posted a 15% decline in net loss in the first nine months of 2021 to P2.204 billion from P2.602-billion net loss reported year-on-year
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Revenues went down 2% due to the decline in revenues from the tanker, passenger and tugboat segments
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The revenue drop was mitigated by higher take from the freight and logistics segments
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Freight revenues accounted for 62% of the total group revenues while logistics contributed 10%
Chelsea Logistics and Infrastructure Holdings Corp. (CLC) posted a 15% decline in net loss in the first nine months of 2021 to P2.204 billion from the P2.602-billion net loss reported in the same period last year.
The lower loss was driven by continued rational cost-containment measures as well as a slight year-on-year improvement in revenues led by the freight and logistics businesses, CLC said in a statement.
Revenues fell 2% to P3.272 billion for the January to September 2021 period compared with the P3.325 billion in the same period last year. CLC attributed the negative performance to the slide in revenues from the tanker, passenger and tugboat segments, although somewhat mitigated by higher revenues from freight and logistics.
CLC’s freight business rose 58% year-on-year from P1.286 billion to P2.035 billion. The company noted that freight revenues were flat in the first two quarters of this year while third-quarter revenues increased by 27% to P794 million from the second quarter.
CLC said this is “a positive proof of the recovery slowly happening in the shipping industry for certain segments.”
Year-to-date, freight revenues represented 62% of the total group revenues, higher than the 39% share for the same period last year.
The passage and tankering segments remained challenging with continued restrictions on inter-island travel and movement of petroleum products.
Passage revenues for the quarter doubled year-on-year, which CLC attributed to low-base effects, with the P50 million in revenues only accounting for 4% of the quarter’s total.
However, it noted pockets of recovery in the passage business with revenues just down 15% quarter-on-quarter, despite subsequent enhanced community quarantine restrictions imposed by the national government in March and August 2021. This is in marked contrast from the 99% quarter-on-quarter drop in the same quarter last year, CLC said.
Due to the movement restriction on petroleum products, tankering revenues in the third quarter of 2021 were down 27% year-on-year and 63% quarter-on-quarter to P120 million. Year-to-date, these were down 50% to P446 million.
On the other hand, the logistics business reported positive revenue growth of 32% year-year to P327 million. Revenues from the logistics segment contributed 10% to the group’s topline.
CLC said a number of its ships were placed on intentional lay-up due to low demand, while other vessels were on extended drydocking. Operating passenger vessels were also running at a low load factor, with a maximum of 50% capacity in compliance to travel protocols.
Since ships were underutilized, CLC said direct fixed costs, such as depreciation and amortization, insurance, bunker fuel, salaries and wages, and repairs and maintenance costs, put margin pressures on the group’s consolidated performance that resulted in gross loss during the period.
Total cost of services and goods amounted to P3.586 billion in 2021, 5% lower versus P3.760 billion in 2020.
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 rationalizing the workforce, improving vessel utilization, enhancing revenue management, cost cutting, and suspending uncommitted capital expenditure.
CLC’s 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.
