2GO Group, Inc. and its subsidiaries posted a net loss of P1.3 billion in 2018, an increase from the P310 million net loss in 2017.
Revenues increased by 2% to P21.990 billion in 2018 from P21.551 billion 2017 due to gross presentation of certain revenue streams amounting to P1.4 billion as required by the new revenue accounting standard, the group said in a disclosure to the Philippine Stock Exchange.
Shipping revenue in 2018 decreased by 6% primarily due to the dry-docking of 12 vessels for refurbishment and repairs and maintenance, compared to 10 vessels dry-docked in 2017. Out of the 12 vessels, eight were big and medium-sized ships compared to only five in the same sizes for 2017, reducing the group’s total freight capacity by 13% last year. Travel capacity likewise declined by 8% for the roll-on/roll-off-passenger (Ropax) vessels, while fastcraft capacity dropped by 4%.
Shipping revenues were also adversely affected by weather disturbances (e.g., typhoons, storms, rough seas), which led to canceled voyages over the course of the year.
“The overcapacity and competition in the freighter market likewise continue to push down freight rates,” the group noted.
Revenue from its non-shipping business (logistics and distribution), which accounted for 58% of the total, also decreased by 3%. Revenue from the logistics business and other services declined by 12% after rationalization of unprofitable accounts. The distribution business, on the other hand, increased its revenue by 9%.
Total cost and expenses in 2018 were maintained despite rising fuel prices and increased sales of inventory from the distribution business, 2GO said, adding that all other costs and expenses were generally kept at bay due to improvements in efficiencies and focus on controlling costs.
The group provides shipping, logistics and distribution services to small and medium enterprises, large corporations, and government agencies throughout the Philippines. Its shipping group operates ocean-going freighters, roll-on/roll-off freight and passenger vessels, and fast ferry passenger vessels.
The logistics group offers transportation, warehousing and distribution, cold chain solutions, domestic and international ocean and air forwarding services, customs brokerage, project logistics, and express and last-mile package and e-commerce delivery.
The distribution group leverages 2GO’s shipping and logistics services to provide value-added distribution services to principals and customers.
As of end-2018, 2GO and its subsidiaries have a total fleet of 27 operating vessels, of which 23 are company-owned, while the remaining vessels are under lease agreements. The company’s operating vessel fleet has a combined gross registered tonnage of 128,985 metric tons, a total passenger capacity of 7,450,162 passengers, and an aggregate cargo capacity of 338,305 twenty-foot equivalent units.
The group calls the ports of Manila, Batangas, Calapan, Puerto Princesa, Odiongan, Bacolod, Caticlan, Cebu, Dumaguete, Iloilo, Ormoc, Tagbilaran, Butuan, Cagayan de Oro, Davao, Dipolog, General Santos, Iligan, Ozamis, and Zamboanga.
