Lorenzo Shipping posts P86.21M net loss in Q1

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Photo from Lorenzo Shipping Corp.
  • Lorenzo Shipping Corp recorded a net loss of P86.21 million in the first quarter of 2024, a reversal from the P51.06 million net income posted in the same period last year
  • Revenues dropped 30% in the first three months of the year to P635.40 million
  • Container volumes handled dropped 31.73% year-on-year due to fewer voyages brought about by reduced fleet capacity
  • LSC said it faced an industry-wide decline in domestic consumption brought about by successive increases in inflation and consumer price index during the first quarter
  • Despite challenges, forecast for the remaining months of the year remain bullish

Lorenzo Shipping Corporation (LSC) posted an P86.21 million net loss in the first quarter of 2024, a reversal from the P51.06 million net income posted in the same period last year.

Revenues dropped 30% in the first three months of the year to P635.40 million from P905.130 million in the same period last year as container volumes handled were 31.73% lower year-on-year.

The decline in container volumes handled was due to fewer voyages brought about by reduced fleet capacity, the domestic shipping operator said in a regulatory disclosure.

Direct costs decreased 16% to P658.493 million while general and administrative expenses were 11% lower at P42.79 million.

Following positive results from the previous year, LSC said it faced an industry-wide decline in domestic consumption brought about by successive increases in inflation and consumer price index during the first quarter.

READ: Lorenzo Shipping net income soars 415% to 2023 record high

With fuel costs also gradually creeping up, LSC said it exerted its best effort to fulfill its strategic operating plan.

“Despite these challenges, forecast for the remaining months of the year remain bullish,” LSC said.

For this year, LSC’s plan of operations includes sustaining schedule and service reliability brought about by regular maintenance of vessels and equipment in order to assure heightened customer experience.

Sales and marketing will also focus on high-yield cargo and shipping routes to ensure healthy margins and profitability.

LSC will also carry on with institutionalized cost-rationalization programs to guarantee efficiency, while augmenting innovation and digital tools for maximum productivity.

The carrier will also 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.