Lorenzo Shipping net income soars 415% to 2023 record high

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Photo from Lorenzo Shipping Corp.
  • Lorenzo Shipping’s 2023 net income soared 415% to P95.79 million, a record high
  • Freight revenues declined 1% to P3.28 billion from P3.30 billion
  • LSC cited a notable increase in domestic consumption and a surge in transportation needs for consumer goods resulting in higher cargo volume and freight revenue

Lorenzo Shipping Corp.’s (LSC) net income soared 415% in 2023 to a record high of P95.79 million from P18.60 million in 2022.

This is the second straight year since 2015 that the domestic carrier reported a positive income.

Freight revenues, however, declined 1% to P3.28 billion from P3.30 billion in 2022, LSC said in a regulatory disclosure.

Total operating expense decreased 6% to P2.89 billion from 2022’s P3.06 billion, resulting in a 67% rise in gross profit to P391.28 million in 2023 from P234.39 million in 2022.

In his message on the company’s sustainability report, LSC president and chief operating officer Reynold John Madamba said there was a notable increase in domestic consumption and a surge in transportation needs for consumer goods, resulting in a rise in cargo volume and elevated freight revenue.

The latter part of the year, however, saw a slowdown in demand due to successive increases in global and domestic interest rates as well as consumer price index, with Filipino consumers becoming more cautious with their spending.

Madamba said: “Despite this challenge, our company persevered and achieved a record-high annual net income, marking a significant milestone in at least eight years. Having recovered from the previous year’s setbacks, LSC is now operating profitably again.”

Hoping to ride the momentum in the succeeding years, LSC said it will seek to find opportunities for improvement.

Plans include sustaining schedule and service reliability brought about by regular maintenance of vessels and equipment for better customer experience.

Sales and marketing will also focus on high-yield cargoes and shipping routes to ensure healthy margins and profitability, LSC said.

The carrier said it will also carry on with institutionalized cost-rationalization programs to guarantee efficiency while augmenting innovation and digital tools for maximum productivity.

In addition, it will commence training and development of personnel for skills enhancement and fulfillment, including identification of deserving employees for career advancement.

LSC operates eight vessels that call on 10 major ports in the country.

READ: Lorenzo Shipping income rebounds in first 9 months