By Imee Charlee C. Delavin,
Senior Reporter
2GO GROUP, Inc. has appointed a new chief financial officer after announcing adjustments in reported profits for the last two years following a special audit, the logistics firm told the Philippine Stock Exchange late on Friday.
In a regulatory filing after its board meeting on July 7, 2GO said it appointed William Charles Howell as chief financial officer and treasurer to replace Jeremias E. Cruzabra, who resigned.
The company also submitted a restatement of its audited financial results for 2015 and 2016, as well as the unaudited financial statements for the period ended March 31, 2017.
2GO reported its restated net income for 2015 stood at P109.131 million. This is 90% lower than the P1.08-billion profit it earlier disclosed in its 2015 annual report.
For 2016, 2GO said its restated profit is P344.035 million, a 74% decline from the P1.34-billion net income it earlier reported.
For the first quarter of 2017, 2GO said it should have reported a net loss of P264.86 million, instead of a P267.562-million profit.
2GO President and CEO Dennis A. Uy said the company had tapped SyCip Gorres Velayo & Co. to conduct the special audit of the company’s financial statements after his group took over.
“The audit revealed certain accounts in the previously audited financials required restatement, and the new management, with the support and approval of the newly elected members of the audit committee and board of directors, agreed to restate prior period financial statements to reflect fairly the state of the business,” he was quoted as saying in the disclosure.
Despite this, Mr. Uy remained confident that the “potential of 2GO to grow and be a major player in this dynamic shipping and logistics industry remains intact.”
“The restatement is a commitment of the new management and Board of Directors to raise corporate governance standards in the company,” Mr. Uy said.
The PSE is implementing a trading suspension on 2GO shares on Monday, pending the company’s submission of additional information.
Last April, Mr. Uy was named the new President and CEO of 2GO following the retirement of Sulficio O. Tagud, Jr. The boards of Negros Naviation, Inc. and 2GO also elected Frederic C. Dybuncio and Ma. Concepcion F. de Claro as new directors, replacing Mr. Tagud and Mr. Cruzabra.
SM Investments Corp., the holding firm of Henry Sy, Sr., had announced its entry in 2GO earlier that month, purchasing a minority stake in 2GO Group through a 34.5% interest in Negros Navigation which owns 88.31% of 2GO, according to an earlier regulatory filing.
Mr. Uy is the chairman of Udenna Corp., the parent of Phoenix Petroleum Philippines, Inc. and Chelsea Logistics Corp. Udenna is poised to further expand its footprint in the logistics sector with the planned consolidation of its stake in 2GO with its other shipping businesses under Chelsea Logistics.
2GO shares lost 3.32% or 80 centavos at the end of Friday’s trading, to close at P23.20 apiece from its previous finish of P24.10 previously.
