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Lorenzo Shipping Corp. first-half net loss of P105.08 million is 1,376% more than the P7.13 million net loss a year ago mainly due to high fuel costs
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Revenue though is up 4.9% due to fuel cost recovery efforts and freight adjustments
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LSC’s first-half container volume fell 7.1% year-on-year on fewer voyages due to port congestion
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Freight recovery and cost rationalization efforts to continue, company says
Domestic carrier Lorenzo Shipping Corp.’s (LSC) net loss widened by 1,376% to P105.08 million in the first half from P7.13 million net loss year-on-year mainly due to high fuel costs.
For the period in review, revenue was P1.571 billion, 4.9% higher than the P1.497 billion revenue over the same period last year. LSC in a regulatory disclosure attributed the rise to efforts to recover increasing costs through fuel cost recoveries and freight rate adjustments.
Fewer voyages amid what LSC said was prevalent port congestion cut containerized cargoes handled in the first half by 7.1% year-on-year.
The company ended the first semester with a gross loss of P20.28 million, a reversal from the P73.7 million gross profit in the same period last year. LSC said the loss stemmed largely from the increase in direct costs due to soaring vessel fuel costs and other related expenses, such as trucking, tuggage, and pilotage.
Direct costs for the period rose 11.8% to P1.591 billion from P1.423 billion last year.
As fuel prices continuously increase along with high inflation, LSC said it continues to pursue efforts at freight recovery and cost rationalization.
As domestic consumption increases amid relaxed pandemic restrictions, the carrier said demand growth is underway in terms of capacity availability, resource readiness, and work process improvements along with a hybrid work schedule.
LSC’s operation plans for the second semester include scheduling integrity, vessel and equipment maintenance, and service reliability to improve customer experience.
The company will also focus on maximizing yield per container per voyage to counter the escalation of various expenses.
It will continue with process improvements and technology applications to significantly contribute to more efficient operations. It will also undertake risk-mitigation measures and continuously strengthen statutory compliances to diminish service disruption and ensure business continuity.
Moreover, LSC said it will pay close attention to the physical, mental, and emotional welfare of both land-based and sea-based employees to maximize productivity.
LSC has a fleet of five vessels and has contracted four vessels under a transport service deal for deployment in key ports in Manila, Visayas and Mindanao.
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