Philippine logistics firm 2GO Group, Inc posted a net loss of P365 million in the first half of the year compared to last year’s P172-million loss.
Consolidated revenues reached P6.96 billion in January-June period or 9% higher than the year-ago level. The shipping business accounted for 71% of total revenues while supply chain made up 29%.
The freight business achieved a 21% year-on-year, or P554.41 million, growth in revenues in the first half due to an increase in both volumes and average price. Passage business revenues rose 10%, or P124.86 million, owing largely to the higher average rate per passenger. The 2GO Group now operates its whole vessel fleet, including that of Negros Navigation (Nenaco), under a time-charter arrangement.
The supply chain business, however, recorded a 19% year-on-year decline in revenues mainly due to the disengagement of certain principals with negative profitability. This decline was partly mitigated by synergies achieved from the integration of 2Go with Nenaco, which helped reduce operating costs by 10%.
Fuel costs jumped 36% largely due to fuel price hikes, coupled with the addition of the Nenaco vessels to the combined fleet.
The 2GO Group said it continues to focus on maximizing the earning capacity of its assets and lowering overall costs, amid rising fuel costs and fierce competition.
Earlier, the company said it plans to slash capacity of its freighters by half in response to local trade requirements. 2GO said the capacity of freighters 2GO 1 and 2GO 2 – at 1,000 twenty-foot equivalent units (TEUs) each – is far too big for the Philippine market, especially given current slow trade conditions. Plans call for the sale of 2GO 1 and 2GO 2 and the acquisition of smaller-capacity ships, possibly two 500-TEU capacity vessels.
