Chelsea Logistics profits surge on acquisition » Manila Bulletin Business



By James A. Loyola

Chelsea Logistics Holdings Corporation (CLC) reported a 93-percent surge in net earnings to P399.8 million in the first half of 2017 from P207 million in the same period last year.

Dennis A. Uy

In a statement, the firm said the higher profit came as it realized the full benefit of deploying vessels acquired in late 2016 and those previously drydocked as well as recognized its share in the earnings of newly-acquired 2GO Group, Inc.

Chelsea Logistics said its revenues grew by 9 percent to P1.54 billion from P1.4 billion in the first semester of 2016, driven by the increase in freight revenues.

Freight revenues rose primarily due to the commercial operations of MV Trans-Asia 12, which plies the Manila-Cebu route, and increase in tugboat fees primarily due to more port calls. MV Trans-Asia 12 started commercial operations on such route only in August 2016.

The increase in revenues was tempered by the fact that two big tankers of the group were placed on bareboat charter resulting in lower revenue but with better and more stable margin.

In the second quarter alone, CLC booked a net income of P372.6 million, 98 percent above the R188 million posted in the same period last year primarily due to the company’s share in the net income of Negros Navigation Co., Inc. and 2GO Group, Inc. through its investments in Udenna Investments B.V. amounting to P184.6 million.

“We are delighted to report the strong performance of our businesses to our investors and partners who continue to guide us through our growth path,” CLC Chairman Dennis A. Uy said.

He added that, “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.”

“Going forward, we reiterate our commitment to improving and expanding the operations of Chelsea Logistics further in order to better serve the shipping and logistics needs of our growing economy,” Uy said.

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