The reduction in direct costs helped narrow domestic carrier Lorenzo Shipping Corporation’s (LSC) net loss in the first half of 2018 to P40.639 million from P78.447 million year-on-year.
Freight revenues for the first six months of 2018 amounted to P901 million, 21.5% lower than the P1.148 billion reported in the same period in 2017, LSC said in a disclosure to the Philippine Stock Exchange.
Volumes handled by the carrier for the first half went down 22% due to the extended repair of one of its vessels, MV Lorcon Bacolod. Industry vessel capacity, however, remained high compared to demand which generally affected freight, the carrier explained.
But for the second quarter alone, LSC earned a net income of P30.423 million, a reversal from the P14.068 million loss in the second quarter of 2017. This was also after it reported a wider net loss in the first quarter of 2018.
The company reported a reduction in direct cost amounting to P901 million, or an improvement of 22% from the P1.150 billion cost in the first half of 2017.
Direct vessel expenses grew 32% compared to the same period in 2017, while trucking expenses and co-loading expenses increased 31% and 28%, respectively.
The cost of repair of land-based equipment and container vans, on the other hand, rose by 29% in 2018.
The company said it will continue with its plans throughout 2018, with improvement in vessel and service reliability remaining as the top priority.
Updated on Aug 30, 2018, 6.28pm, to correct freight revenue percentage loss.
