CHELSEA Logistics and Infrastructure Corp. expects its recovery from the impact of the coronavirus pandemic starting the “middle of next year,” its top official said.
“We are in the best position to bounce back faster once the economy improves and businesses will be operating on the new normal,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a disclosure to the stock exchange on Wednesday..
Chelsea Logistics noted it has deferred most of its capital expenditures “except for those already committed and started.”
The company said it proceeded with the disposal of “idle and inefficient assets,” as part of its measures to mitigate the impact of the ongoing coronavirus pandemic.
“The company also availed of the extension periods for loan payments provided under Bayanihan Acts I (Republic Act No. 11469) and II (Republic Act No. 11494) to ease its cash flow,” Chelsea Logistics added.
The listed firm said further that during its special stockholders’ meeting on Oct. 6, it “increased its authorized capital stock from P2 billion to P3.5 billion, which will be divided into 3.49 billion common shares and 10 million preferred shares, both with par value of P1.00 per share.”
“This increase will give the company greater flexibility and optionality for any equity raising to finance current and future projects as well as for additional working capital needs,” Chelsea Logistics said.
Mr. Damuy noted the company’s logistics business has been benefitting from the surge in e-commerce and demand from mobile applications and banking solutions despite the challenging situation.
“One of the company’s investments, which will be a significant cash flow generator, is its 2.5-hectare logistics warehouse which will be completed by the first quarter of 2021,” the listed firm said.
The company expects “positive cashflow” in early to mid-2022.
Shares in Chelsea Logistics on Wednesday closed 12.03% lower at P5.19 apiece. — Arjay L. Balinbin
