2GO drags Chelsea earnings down 72%

Chelsea Logistics Holdings Corp. posted a 72 percent drop in profitability in the nine months ending September behind higher costs and losses from 2GO Group Inc.

Chelsea’s net profit in the three quarters stood at P43 million compared to P152 million in the same period last year.

“During the first three quarters of 2018, CLC incurred a steep upsurge in cost of sales and services and other operating expenses due to significant upward movement in oil prices, increase in depreciation and amortization brought about by the acquisition of vessels and additional manpower requirement, among other,” the company said.

“Further, the company recognized its share of P198 million in year-to-date losses from 2GO Group,” it said.

The company, however, registered strong revenue of P3.7 billion during the ninemonth period, 61 percent higher year-on-year.

Revenue from its shipping business grew 54 percent to P3.5 billion, while revenue from logistics services jumped nine percent year-on-year.

“We are expecting our logistics business to gain more momentum once we have accomplished our expansion programs, including additions to warehousing and distribution facilities and equipment,” Chelsea Logistics president and CEO Chryss Alfonsus Damuy said.

Chelsea as of end-September has 16 tankers, 14 tugboats, 22 roll-on/roll-off and passenger vessels (RoPax), 11 cargo ships, and one floating dock, while 2GO Group operates eight RoPax, five cargo vessels, and 11 fastcrafts.