Chelsea Logistics boosts Q2 earnings by 98%

NEWLY-listed Chelsea Logistics Holdings, Corp. (CLC) nearly doubled its net income in the second quarter of 2017, driven by the recognition of its share in earnings from shipping firm 2GO Group, Inc.

In a statement issued on Friday, CLC reported a net income of P372.6 million, 98% higher than the P188 million it recorded in the April to June period of 2016.

The company attributed the increase to the consolidation of 2GO under its management, which translated to a share of P184.6 million in earnings. CLC acquired an indirect stake of 28.15% in 2GO through its parent Negros Navigation Co. Inc. (Nenaco) last March. The purchase was made through Udenna Investment B.V., part of Davao-based businessman Dennis A. Uy’s holding firm, Udenna Corp.

Other than Udenna, the SM group also has an indirect stake in 2GO through the purchase of a 34.5% stake in Nenaco in March this year.

This brings the listed firm’s first half earnings to P399.8 million, up 93% year-on-year. Revenues meanwhile stood at P1.536 billion, 9% higher than the P1.404 billion recorded in the comparable period a year ago.

Growth drivers for the first semester of the year include the operation of vessels acquired in late 2016. Commercial operations of MV Trans-Asia servicing the Manila-Cebu route also just started in August of last year, contributing to the increase in freight revenues.

“The bright prospects of the shipping and logistics industry amid increased trade opportunities within and outside the country alongside our efforts to make our operations more efficient and better keep us on track of our growth trajectory,” CLC chairman Mr. Uy said.

CLC started its operations in 2006 as Chelsea Shipping Corp., the logistics arm of Mr. Uy’s holding firm, Udenna Corp. The company was initially targeted to support the operations of Udenna’s oil firm Phoenix Petroleum Philippines, Inc.

It has since become the largest shipping group in the country with the largest tanker fleet in terms of capacity at 39,271.64 gross registered tonnage. To date, CLC has a total of 11 tankers, eight tugboats, seven roll-on/ roll-off vessels with passenger accommodation (RoPax), four barges and three cargo ships. On the other hand, 2GO has 17 RoPax and eight cargo vessels.

CLC listed its shares on the mainboard of the Philippine Stock Exchange earlier this month, raising over P5 billion to fast track its expansion plan, which includes the addition of more fleets, as well as the upgrade of port facilities, containers, machineries, and equipment. – Arra B. Francia