PURE freight operator Lorenzo Shipping Corp. recently reported a net profit of P4.54 million for the first nine months of the year, down 17% to P22 million from P26.54 million in the same period last year.
For the third quarter alone, the company’s net income dropped 86% to P0.42 million from P2.9 million during the comparable period in 2002. The decrease was due largely to the 10% decline in operating revenue for the period, the company said.
“Total operating revenue for the third quarter was P261.4 million. This is P29.9 million short of last year’s P291.3 million,” it reported.
The company attributed the drop to weak market conditions especially in the manufacturing sector and reduced volume from foreign shipping lines.
Despite the decline, the company said earnings for the period were offset by the 6% improvement in operating expenses, 20% reduction in interest and finance charges and 56% increase in auxiliary services which include arrastre and trucking.
Revenue from January to September fell 5.9% or P46.23 million to P778.20 million from P824.43 million.Total freight liftings generated for the third quarter was P21.7 million, down 11% or P2.7 million from P24.4 million.
The company said interest and finance charges dropped 20% due to effective cash management measures adopted at the start of the year. This was also attributed to the reduction in interest rates and reduction in principal amount of loan due to loan repayments.
For the remaining quarter of the year, Lorenzo said it expects a robust domestic economy as most customers have expressed projection of growth.
“The months of October and December are usually the peak season. Therefore, we anticipate a strong volume support for the last quarter of the year,” the company said.
The absence of vessels scheduled for drydocking is also a factor considered to contribute to better sales performance for the last quarter of the year, it added.
