LORENZO Shipping Corp.’s revenue declined 8.35% to P1.24 billion in the first nine months of the year from P1.353 billion for the same period in 2012 as cargo throughput decreased.
In a filing with the Philippine Stock Exchange, Lorenzo said cargo volume contracted due to a “conflation of factors such as changes in clients’ logistical and operational requirements, and (fewer) voyages due to vessel repairs.”
Revenue for the third quarter dropped 14.15% to P377.598 million from P439.817 million in the third quarter of 2012.
The listed domestic carrier incurred a net loss of P22.237 million for the first nine quarters, a reversal from the P25.438 million income it generated in the same period earlier.
For the third quarter alone, net loss widened to P52.573 million from the P11.151 million loss during the same period last year.
Property and equipment increased 3.2% or P54.1 million due to capital expenditure in the nine-month period.
Earlier, Lorenzo president Roberto Umali said the company was watching small rising competitors “who might be so aggressive in bringing down the rates just to get volumes and expand market shares.”
“Maybe, in the short term, they (small rising competitors) will be able to get some cargoes, but we resist bringing down our rates just to respond to (a) freight war,” Umali said.
Lorenzo owns a fleet of seven vessels and calls at 10 major ports: Manila, Bacolod, Iloilo, Cebu, Dumaguete, Cagayan de Oro, Zamboanga, Davao, Cotabato and General Santos.
Photo from www.lorenzoshipping.com
