EARNINGS of 2GO Group, Inc. dropped by more than a third in the second quarter as costs grew mainly due to higher fuel prices.

The listed shipping and logistics provider posted an attributable net income of P102.3 million in the second quarter, down 36% from P159.66 million in the same period last year.

Total revenues grew 7% to P6.12 billion during the three-month period, but it was offset by rising cost of services and goods sold, which jumped 10% to P5.5 billion.

2GO swung to an attributable net loss of P189.37 million during the first half, from a profit of P199.39 million last year.

Six-month revenues went up by 5% to P12 billion, much of which was driven by stronger returns from the company’s non-shipping business.

2GO’s logistics and distribution business added P7.14 billion to the company’s total revenues in the first half of the year, an increase of 10% from last year due to the growth of its courier, e-commerce, coldchain and isotanks and distribution businesses.

However, shipping revenues slid 1% to P4.87 billion during the period on increased competition in the freight segment.

Non-shipping revenues accounted for 59% of the company’s revenue pie in the first half of the year, while the remaining 41% came from shipping revenues.

Cost of services and goods sold during the six-month period climbed 10% to P11.14 billion due to higher fuel prices.

“Fuel prices increased by 10%, and 2GO was impacted by a negative price variance of P139 million for the first half of the year,” it said in a regulatory filing.

2GO has three core business units, namely: 2GO Freight, 2GO Travel and 2GO Supply Chain.

For the year, the company said it wants to “expand and further enhance its service offerings” by improving the streamlining of operations and collaborations within its businesses units, investing in warehousing and logistics solutions and initiating synergies with its new shareholders. — Denise A. Valdez