Chelsea Logistics Holdings Corp. (CLC) reported a net income of P43.013 million for the first nine months of 2018, a 72% decrease from P152 million earned over the same period last year.
In a statement, CLC attributed its lackluster performance to the steep surge in cost of sales and services and other operating expenses due to the significant hike in oil prices, as well as the increase in depreciation and amortization brought about by vessel acquisition and additional manpower requirement, among others.
The company also recognized its share of P198 million in year-to-date losses from 2GO Group, Inc., in which it has a 28.15% indirect economic interest.
Revenues, however, grew 54% to P3.694 billion during the period in review from P2.296 billion year-on-year, CLC said in a disclosure to the Philippine Stock Exchange.
Contributing the largest share was the freight segment with P1.23 billion, 94.8% more than the P646.434 million earned last year. Charter fees was the second-highest contributor with P1.189 billion, up 13.6% from P1.047 billion in 2017.
The passage segment recorded the highest revenue growth at 114%, generating P727 million from P339.528 million previously.
Revenues from tugs rose 15% to P221.913 million from P192.695 million. Revenues from logistics services grew 9% on a pro-forma basis during the first three quarters of 2018 compared to the same period last year.
“We are expecting our logistics business to gain more momentum once we have accomplished our expansion programs, including additions to warehousing and distribution facilities and equipment,” CLC president and chief executive officer ChryssAlfonsus V. Damuy said.
“With the launching of our newly acquired vessels in the last quarter of this year, namely, M/V Salve Regina, M/T Chelsea Providence, Trans-Asia 1, Trans-Asia 15, Trans-Asia 16 and Trans-Asia 17, we are anticipating a substantial improvement in recurring earnings starting this quarter and the succeeding reporting periods,” Damuy added.
On November 15, 2018,Trans-Asia Lines, a subsidiary of CLC, was to have taken delivery of another brand-new roll-on/roll-off passenger (RoPax) vessel to be named Trans-Asia 19. The vessel will be deployed to a new route along with the soon-to-be-refurbished Trans-Asia 18.
CLC, through its wholly owned subsidiaries, ended the first nine months of 2018 with 16 tankers, 14 tugboats, 22RoPax, 11 cargo ships, and a floating dock, while 2GO operates eight RoPax, five cargo vessels, and 11 fastcraft.
