Chelsea cuts losses; sustains Q3 recovery

CHELSEA Logistics and Infrastructure Holdings Corp. sustained its recovery in the third quarter with continued yearon-year increases in its topline, which resulted in lower net loss compared to the same period last year by 57 percent from P1.13 billion to P489.14 million this year.

Revenues were up by 50 percent in the July to September period in 2022 to P1.717 billion from P1.142 billion in the same span last year, with positive growth across segments.

All revenue segments reported year-on-year and quarter-onquarter improvements, with the passage segment, in particular, showing significant growth.

Passage revenues in the third quarter of 2022 grew more than seven times year on year to P371 million, the highest quarterly revenue achieved since the government-imposed lockdown in March 2020.

The freight segment also continued its upward trajectory, with revenues growing year on year by 7 percent to P850 million. Freight remained the most significant revenue contributor for the quarter accounting for 53 percent of total revenues.

“The implementation of our recovery plans continues to bear fruit as shown by the thirdquarter results with all segments reporting positive revenue growth both on year on year and sequential bases, leading to a reduction in net losses,” Chelsea President and Chief Executive Officer Chryss Alfonsus Damuy said.

He also noted that the shipping industry is a high capital expenditure (capex) business, with fixed costs accounting for a huge portion of operating costs, and with the continued significant growth in revenue, the company will soon outpace these costs.

“It has not been easy since the lockdown, but with the support of our stakeholders, we can execute our recovery plans, bringing in sustained improvements in the group’s financial performance,” Chelsea Chief Finance Officer Ignacia Braga 4th added.