Chelsea Logistics net loss widens to P3.3B

CHELSEALOGISTICS.PH

CHELSEA Logistics and Infrastructure Holdings Corp. on Thursday logged a wider annual loss, mainly due to the impact of the coronavirus pandemic and government measures affecting its operations.

The Dennis A. Uy-led listed company reported an attributable net loss of P3.31 billion for 2020, compared with a loss of P831.76 million a year earlier.

Revenues fell 34.12% to P4.68 billion in 2020, the company said in a disclosure to the stock exchange. Broken down, freight revenue declined 21.99% to P2.10 billion, tankering revenue decreased 41.25% to P1.17 billion, and passage revenue dropped 64.79% to P501 million.

The company’s logistics business kept its revenue at P368 million, while the tugboat segment’s revenue grew 3.85% to P351 million from P338 million.

Its EBITDA (earnings before interest, taxes, depreciation and amortization) dropped 90% to P205 million in 2020.

“In March (last year), the COVID-19 (coronavirus disease 2019) pandemic escalated rapidly, and the resulting impact on the operations and the measures taken by the government to contain the virus have negatively affected the group’s results in the operating period,” the company said.

“Although movement of essential goods were allowed, cargo volume dropped considerably in the first two and a half months of the two enhanced community quarantine (ECQ) period. The gradual lifting of restrictions resulted in a slight improvement in the group’s operations, which is still far from its pre-pandemic operating results,” it added.

On March 18 this year, Chelsea Logistics entered into a share purchase agreement to sell its entire shareholdings in 2GO Group, Inc.

The company said it is expected to complete the disposal within 90 days from signing of the agreement.

Chelsea Logistics shares closed 0.60% lower at P3.31 apiece on Thursday. — Arjay L. Balinbin

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