Lorenzo Shipping returns to loss in Q1

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Lorenzo Shipping
Lorenzo Shipping's loss was due mainly to high fuel costs, which rose 49% compared with the same period in 2021 and inflated direct costs,
  • Lorenzo Shipping returns to loss in Q1
  • The net loss of P30.833 million is a departure from the P42.721 million net income year-on-year
  • Fuel costs rising 49% dragged the domestic carrier’s performance
  • Freight revenue up 2% following imposition of surcharges and adjustment of freight
  • Cargo throughput down 5.4% on fewer voyages due to port congestion

Lorenzo Shipping Corp. (LSC) returned to loss in the first quarter, booking a P30.833 million net loss from a net income of P42.721 million in the same period in 2021.

The loss was due mainly to high fuel costs, which rose 49% compared with the same period in 2021 and inflated the domestic carrier’s direct costs, LSC said in a regulatory disclosure. Direct costs grew 12% to P796 million from last year’s P711 million.

Freight revenue for the first three months amounted to P795 million, 2% more than the P781 million recorded year-on-year following the imposition of surcharges and adjustment of freight.

Container volumes handled during the first quarter were 5.4% lower than in the same period last year due to fewer voyages caused by port congestion.

As fuel prices rose steadily, LSC said it remained resilient with the help of cost recovery efforts and further cost rationalization.

As the economy improves with fewer pandemic restrictions, demand growth is underway in terms of capacity availability, resource readiness, and work process improvements under the new normal, LSC said.

The company said vessel and service reliability remain as top priorities for this year. Regular preventive maintenance of vessels will be sustained. LSC will also focus on maximizing yield per container per voyage to counter escalation of expenses.

The carrier will implement digitalization and technology for more efficient operations, while monitoring billing and collection closely to maintain a steady cash flow, it said.

LSC operates a fleet of nine vessels deployed to key ports in Manila, 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.