Domestic carrier Lorenzo Shipping Corporation (LSC) posted a net loss of P173.3 million in the first nine months of 2019, lower than the P188.9 million net loss sustained in the same period in 2018.
Revenues for January to September 2019 amounted to P2.229 billion, 66% higher than the P1.337 billion reported in the same period in 2018, LSC disclosed to the Philippine Stock Exchange.
For the third quarter alone, LSC recognized revenues of P778.205 million, 78.6% higher than the P435.705 million reported in the same period last year.
LSC said the higher revenue was due to the chartering of four vessels of sister carrier NMC Container Lines, Inc. (NMCCLI), which increased LSC’s total operating vessels for the period to nine from five. Volume of handled containers was up by 55% compared to the same period as last year.
Direct costs amounted to P2 billion this year, up from last year’s P1.2 billion, of which terminal expenses reached P206.4 million from P163.9 million a year ago. LSC said the increase was due to the additional cost of chartering the vessels of NMCCLI.
General and administrative expenses increased 7% to P141.6 million from P132.4 million, attributable to increase in provision for bad debt.
LSC said it will continue its turnaround plans—noting the benefits reaped as shown in the significant improvement in its direct costs—until the end of 2019. Reporting net losses since 2015, LSC has started to post lower losses from 2017 up to the first quarter of 2019.
The same plans, which are being implemented for years now, include enhancing partnerships with select carriers for flexibility, especially in cases of excess volumes or service disruptions; and maximizing vessel capacity, especially for northbound volumes, using improved pricing schemes.
LSC will also continue to reduce operating costs for trucking, terminal operations, and cargo handling through a focused and flexible organizational structure and appropriate technology.
Programs to manage profit leakage are also being implemented, focusing largely on claims reduction and improved billing and collection cycle through people, process, and technology intervention.
LSC owns and operates five vessels deployed to key ports in Manila, Visayas and Mindanao. It also owns various types of equipment as well as facilities for the efficient handling of customers’ cargoes, including land-based forklifts, top lifts, trucks, container yards, and warehouses at its branches and agencies.