From net loss, Lorenzo Shipping swings to P42.7M income in Q1

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Photo courtesy of Lorenzo Shipping Corp.
  • Lorenzo Shipping saw a net income of P42.721 million in the first quarter of 2021, a reversal from the P32.695 million net loss posted year-on-year
  • Revenues grew 6.5% as container cargoes handled inched up 1%
  • The carrier said there are efforts at freight recovery and further cost rationalization to compensate for uptrend in fuel and other expenses

Domestic carrier Lorenzo Shipping Corp. (LSC) reported a net income of P42.721 million in the first quarter of 2021, a reversal from the P32.695 million net loss posted in the same quarter in 2020.

Revenues for the first three months of the year amounted to P780 million, up 6.5% from P733.190 million posted in the same period in 2020, LSC said in a regulatory disclosure.

For the first quarter of the year, the carrier handled 1% more containerized cargoes than in the first quarter of 2020.

LSC ended the first quarter of 2021 with a gross profit of P77.5 million, an improvement over P6 million year-on-year.

For the same period in review, the carrier said there was a 3.3% decrease in direct cost amounting to P703 million from P727 million due to lower fuel consumption and lower transport voyage service cost.

General and administrative expenses was P41 million, 57% higher than the previous year’s P26 million due to increases in rent, utilities, and salaries and employees’ benefit costs.

LSC said its “amelioration is already being realized despite the ongoing pandemic as noted in the significant improvements in its direct costs, EBITDA [earnings before interest, taxes, depreciation, and amortization], and a positive first quarter net income.”

For 2020, LSC recorded a 61% decline in net loss.

READ: Lorenzo Shipping net loss drops 61% in 2020, recovery ‘in full swing’

The carrier said there are efforts at freight recovery and further cost rationalization to compensate for the uptrend in fuel and other expenses.

Plans and programs will also be adjusted according to economic trends brought about by the changes in quarantine restrictions for the rest of 2021 to guarantee the company’s sustainability, it said.

LSC operates a fleet of nine vessels deployed to the key ports in Manila, the Visayas and Mindanao. The carrier’s vessels have a capacity ranging from 300 twenty-foot equivalent units to 797 TEUs with speeds of 11 knots to 15 knots.

It also owns various types of equipment as well as facilities for handling cargoes, including land-based forklifts, top lifts, trucks, container yards, and warehouses at its branches and agencies.