Home Corporate Chelsea aims to boost balance sheet as losses widen

Chelsea aims to boost balance sheet as losses widen

CHELSEA Logistics and Infrastructure Holdings Corp. announced on Thursday that its net loss for 2021 had widened to P3.9 billion from a loss of P3.3 billion a year earlier despite cutting its operating losses amid the pandemic crisis.

“For the year, the group was able to cut the operating losses by 17% to P2 billion with freight and logistics segments growing by 30% and 41%, respectively,” Chelsea Logistics told the stock exchange.

It attributed last year’s bottom line to “nonrecurring items, which include the sales of assets below book value.”

“Excluding these one-time items, Chelsea group’s net loss would have actually improved by 18% year on year from P5.2 billion in 2020 to P4.3 billion in 2021,” the company noted.

“On the other hand, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reversed to negative P31 million versus P205 million in the previous year,” the group added.

The company’s revenues fell by 4% to P4.5 billion due to declines in passenger, tanker, and tugboat businesses.

It saw its freight segment recover with a 30% year-on-year improvement in revenues to P2.7 billion.

The freight revenue, according to the group, already surpassed the P2.7-billion revenue in 2019.

“Freight accounted for 61% of consolidated revenues, up from 45% in the previous year,” it said.

Revenue from its logistics business climbed by 41% to P519 million last year.

“The passenger business continued to be challenged due to restricted travel protocols implemented not just by the national government but also by local government units of the areas where the group has port calls,” it said.

“The tankering business also continued to experience difficulties in recovery due to restrictions in the movement of petroleum products as well as the lower demand from customers.”

The company, however, is already seeing some signs of recovery in such businesses, “especially for passage with the year-on-year revenue decline slowing down from 65% in 2020 to just 42% in 2021 with P293 million.”

“We are hopeful of a further recovery this year while we need to carefully monitor world oil prices as they will certainly have a negative impact on our margins,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said.

Chief Financial Officer Ignacia S. Braga IV said: “We have reduced and continue to manage all operating expenses to improve margins without sacrificing safety and standards.”

“We continue to work closely with our creditors, suppliers and other stakeholders to strengthen our balance sheet through win-win solutions.”

Chelsea Logistics shares closed 2.55% lower at P1.53 apiece on Thursday. — Arjay L. Balinbin