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Chelsea Logistics losses hit P832 million in 2019

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CHELSEA Logistics and Infrastructure Holdings Corp.’s net loss ballooned by 51% to P832 million last year as the Dennis A. Uy-led firm suffered from its share in the losses of some units and expenses for new vessels and a warehouse complex.

“A significant portion of the net loss reported by the Group can be attributed to its share in net losses of 2Go Group and DITO Telecommunity totaling to P483 million,” it said in a regulatory filing.

The company saw a 35% increase in its consolidated revenues to P6.97 billion as all its business segments improved profitability.

Revenues from the tankering segment grew 14% to P1.98 billion as a result of the operations of the company’s medium-range tanker MT Chelsea Providence.

Freight revenues grew 43% to P2.44 billion while passage revenues rose 47% to P1.42 billion.

“The growth in the freight and passage revenues can be attributed to the operations of new vessels deployed during the year,” Chelsea Logistics said.

Revenues from the logistics segment, which accounts for 7% of the consolidated revenues, posted the biggest growth at 60% to P459 million from P287 million. The company attributed the increase in logistics revenues to its expansion program.

However, it said it had failed to achieve profitability last year “due to the full costing of ships (including, but not limited to, depreciation, financing costs, crew costs, insurance and other related costs, both fixed and variable) deployed during the year.”

Chelsea Logistics said further that there were additional interest expenses incurred for the new vessels and the 2.5-hectare parcel of land that the company had acquired.

The company also cited the construction of a warehouse complex, which will be completed by the third quarter of this year.

Cost of sales and services increased 44% to P5.42 billion from P3.76 billion due to “bunkering costs, depreciation and amortization, crew salaries and employee benefits, repairs and maintenance and insurance as a result of additional vessel deployments last year.”

Portions of the cash flows, Chelsea Logistics said, were also “used to pay P4.5 billion in maturing debts, both principal and interest, during the year.” — Arjay L. Balinbin





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