Chelsea Logistics incurs P551-million loss in 2018

MANILA, Philippines — Dennis Uy’s Chelsea Logistics Holdings Corp. incurred a net loss last year behind higher bunkering costs, increased interest rates, and share in losses of 2Go Group Inc.

Chelsea Logistics said it recorded a net loss of P551 million in 2018 from a net profit of P161 million the previous year.

“A significant portion of the net loss reported by the group can be attributed to its share in net losses of 2Go Group Inc. amounting to P453 million,” the company said.

Excluding the amount, Chelsea Logistics said it would have instead recorded a net loss of just P98 million, which is primarily due to increased bunkering costs and higher interest rates.

Revenue of the company, however, jumped by 32 percent to P5.17 billion from P3.91 billion behind robust growth in each of its business segment.

Tankering and freight segments accounted for the largest share of the group’s total revenues last year at 34 percent and 33 percent, respectively.

Chelsea Logistics said the increase in tankering revenues was a result of higher freight rates charged for farther distance of port calls, while the freight segment was driven by the acquisition of three freighters in November 2017.

Revenues from logistics services, which accounted for six percent of total revenues, grew to P287 million behind additional customers acquired during the year.

Chelsea Logistics in August last year submitted an P11.2-billion unsolicited proposal for the modernization of the Davao Sasa port. The proposal is still under review of the Philippine Ports Authority.

The company in October last year secured an original proponent status from the Department of Transportation for its P49-billion unsolicited proposal for the Davao International Airport.

Chelsea, together with Udenna and state-owned China Telecom, forms a consortium that is set to become the country’s third telecommunications player.