Uy-led Chelsea, Dito post mixed financial results

MANILA, Philippines —  The shipping and telco ventures of Davao-based billionaire Dennis Uy are heading in opposite directions, with the former close to stopping its bleeding, while the latter is performing worse.

Based on its financial results, Chelsea Logistics and Infrastructure Holdings Corp. slashed its net loss to P80.63 million in the six months to June, from P430.87 million a year ago.

Chelsea also booked a profit of P67.54 million in the second quarter, marking the first time the shipper is back in the black since the pandemic.

Revenue grew by 11 percent to P3.98 billion in the first half, while expenses rose by 21 percent to P3.1 billion. Chelsea said revenue turned in a double-digit growth, as all of its business units expanded during the period, from passage and chartering, to tugboats and logistics.

Chelsea chief financial officer Ignacia Braga IV said the shipper is determined to keep its growth momentum going into the second half. The company plans to improve operational efficiency and reduce its business costs to further chop down its net loss.

“We are also confident that our financial discipline and strategic initiatives will drive continued improvements in our financial performance over the next quarters,” Braga said.

Latest data from the Philippine Ports Authority showed that passenger traffic in ports went up to 41.48 million in the first semester, up by 16 percent from 35.38 million a year ago.

Cargo trade by sea also soared by six percent to 138.29 million metric tons (MMT), from 130.08 MMT, on the recovery of logistics activities here and abroad.

On the other hand, Dito CME Holdings Corp. incurred a net loss of P12.05 billion from January to June, eight times larger than the year ago level of P1.44 billion.

While revenue increased by half to P7.66 billion, proving the capacity of flagship unit Dito Telecommunity Corp. to earn, expenses surged by 22 percent to P14.14 billion as Dito spent for network buildup to keep up with the connectivity reach of its competitors.

Also, Dito doubled its interest expenses to P9.32 billion, covering recent payments for maturing loans.

Worse, Dito suffered a foreign exchange loss of P9.32 billion, from a gain of P7.45 billion, as a result of currency fluctuations when it paid foreign-denominated debts.

Dito is expected to break even by 2025 and swing to a profit by 2028, and it looks to secure fresh funds from private placements of as much as P40.26 billion for capital expenditures.