Chelsea incurs P345-M net loss in Q1

LISTED Chelsea Logistics and Infrastructure Holdings Corp. recorded a net loss of P345 million in the first quarter, reversing the P139- million income posted in the same period last year as the Taal Volcano eruption and the coronavirus pandemic impacted its operations.

In a disclosure on Tuesday, the Dennis Uy- led firm said revenues inched up by 1 percent to P1.613 billion in January to March from P1.599 billion year- on- year.

Revenues from its shipping business grew by 2 percent to P1.51 billion, while its passage business saw a 39- percent improvement to P413 million.

“[ This] is mainly due to the recent consolidation of the Supercat Fast Ferry Corp., serving new routes and more passengers,”

Chelsea explained.

The company’s tugboat business contributed P86 million, 6 percent higher than the P82 million booked the year before.

But its logistics segment weakened, with revenues down 10 percent to P106 million because of “the restricted movement of goods caused by the Taal Volcano eruption and then by the governmentimposed ECQ ( enhanced community quarantine).”

Operating profit in January to March dropped by 90 percent to P40 million, which Chelsea blamed on “limited operations due to the ECQ implemented in mid- March, which is historically the start of the shipping industry’s peak season.”

Despite the net loss, Chelsea President and Chief Executive Officer Chryss Alfonsus Damuy remained optimistic that his firm would be profitable again.

“We are certain that our capital investments will bear fruit going forward,” Damuy said in the disclosure. “[ W] e have investments [ that] are expected to generate significant cash flows: there are two vessels to be delivered this year [ and] our 2.5- hectare logistics warehouse will be completed by the first quarter of next year and will boost capacity.”

“We do remain confident that, with our strategic plans to combat the crisis, and with our existing resources, capacity, fixed assets and strong market share, the Chelsea Group will spring back to recovery and move faster toward the ‘ new normal,’” he added.

Chelsea shares dipped by 11 centavos or 2.81 percent to end at P3.81 each on Wednesday.