Chelsea Logistics Holdings Corp. (CLC) reported a 93% surge in earnings in the first semester of 2017 to P399.8 million from P207 million recorded in the same period last year.
CLC in a statement said this resulted from realizing the full benefits of deploying vessels acquired in late 2016 and those previously dry-docked, as well as recognizing its share in the earnings of 2GO Group, Inc.
Revenues from January to June 2017 grew 9% to P1.536 billion from P1.404 billion, driven by the increase in freight revenues from the commercial operations beginning August 2016 of MV Trans-Asia 12, which plies the Manila-Cebu route, and the increase in tugboat fees primarily due to more port calls.
The increase in revenues, however, was tempered as two big tankers of the group were placed on bareboat charter, resulting in lower revenue “but better and stable margin.”
In the second quarter alone, CLC booked a net income of P372.6 million. The amount is 98% above the P188 million posted in the same period last year due to the company’s share in the net income of 2GO Group and 2GO’s parent firm, Negros Navigation Co., Inc. (NENACO), through its investments in Udenna Investments B.V. amounting to P184.6 million.
“We are delighted to report the strong performance of our businesses to our investors and partners who continue to guide us through our growth path,” CLC chairman Dennis Uy said.
“The bright prospects of the shipping and logistics industry amid increased trade opportunities within and outside the country alongside our efforts to make our operations more efficient and better keep us on track of our growth trajectory,” he added.
CLC recently embarked on an initial public offering of common shares to accelerate its expansion organically and through acquisitions.
The company has earmarked the net proceeds for fleet expansion; purchase and upgrade of ports, port facilities, containers, machinery and equipment; acquisition of other shipping and logistics firms; and general corporate purposes.
“Powered by the trust and confidence of our investors and partners, we will continue working hard to grow Chelsea Logistics into the country’s prime mover of vital goods, cargoes and passengers,” CLC president and chief executive officer Chryss Alfonsus Damuy said.
Udenna entered the shipping business in 2006 through Chelsea Shipping Corp. (CSC) to support the operations of its oil company Phoenix Petroleum Philippines, Inc.
The shipping business has since grown, with the company having acquired the largest tanker fleet in terms of capacity with a total 39,271.64 gross registered tonnage.
In March, CLC acquired a 28.15% indirect economic interest in 2GO Group and subsequently took over its management. The SM Group would complete its purchase of a 34.5% stake in NENACO later that month.
CLC currently has 11 tankers, eight tugboats, seven roll-on/roll-off vessels with passenger accommodation (RoPax), four barges, and three cargo ships. 2GO, meanwhile, has 17 RoPax and eight cargo vessels.
