2GO Group, the Philippines’ largest domestic vessel operator, widened its net loss in the first nine months of the year, dragged by slow performance of its supply chain business.
The publicly listed company’s net loss reached P342.96 million, up 35% from the P254.708-million loss posted in the same period last year.
Consolidated revenues for the period improved 8% from P9.461 billion to P10.260 billion.
The shipping business accounted for 66% of total revenues and supply chain, 34%.
The freight business saw a 20% rise in revenues to P4.761 billion from P3.982 billion, due to combined increases in volume and average price.
Revenues from the passage sector also grew 11% from P1.783 billion to P1.973 billion, thanks to higher average rates per passenger.
Revenues from the supply chain business, however, dropped 36% to P1.524 billion from P2.379 billion as a result of the disengagement of some principals with negative profitability.
Costs and expenses grew by P548.1 million or 6% from P9.789 billion to P10.337 billion. The company attributed the rise to higher fuel prices coupled with the addition of vessels owned by Negros Navigation, which had bought majority shares of 2GO from the Aboitiz Group, in the combined fleet.
Operating expenses went up 24% to P7.3 billion from P5.883 billion while terminal expenses slipped 20% to P853.910 million from P1.071 billion.
During the period in review, the group also recognized a one-time loss on disposal of two cargo vessels and vessel lay-up costs amounting to P201.7 million and P107.8 million, respectively.
Photo from www.2go.com.ph/GROUP/About/company-profile.asp
