Sea Logistics

2GO, Chelsea and Harbor Star incur net loss in Q1

The country’s shipping lines 2GO, Chelsea and Harbor Star incurred a net loss in the first quarter of the year, due to travel restrictions and a slowdown in the economy during the coronavirus disease 2019 (Covid-19) pandemic.

2GO Group, Inc. and subsidiaries widened the net loss to P292 million in the first three months of the year, from P111 million net loss in the same period a year ago. Total revenue declined 23 percent year-on-year (YoY) from January to March.

Chelsea Group has narrowed its net loss to P218 million in the first three months, 42 percent less year-on-year.

Chelsea President and Chief Executive Officer (CEO) Chryss Alfonsus V. Damuy said, “It has been a long climb out from last year and while we are not yet out of the woods, the first quarter results showed significant improvements that can extend this year as the economy further opens up realizing the recovery that we see will happen in the second half of this year”.

Harbor Star Shipping Services, Inc. and its subsidiaries’ pre-tax net loss widened by 213 percent to P66.63 million on March 31, 2021, from P21.32 million net loss a year ago.

For this year, 2GO Group aims to expand and further enhance its service offerings through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers.

“Management is confident that 2GO will further its growth and become an even stronger logistics solutions provider going forward,” said William Charles Howell, 2GO chief financial officer (CFO) and treasurer.

During the first quarter of 2021, 2GO’s shipping business accounted for 22 percent and non-shipping accounted for 78 percent of total revenue, compared to 34 percent and 66 percent respectively, in the same period in 2020.

2GO’s shipping revenue comprised of sea freight and travel revenue, declined 51 percent brought by reduced economic activity, especially for travel. It has implemented maintenance services to 2GO’s roll- on roll -off passengers (ROPAX) vessels, which resulted in 24 percent fewer round trips YoY.

Revenue from logistics and other services increased 15 percent due to growth from 2GO’s specialized reefer and iso tank containers, international courier, and project logistics. Distribution revenue declined 22 percent due to weaker consumer spending and changes to product mix.

Chelsea CFO Ignacia S. Braga IV said the company has taken necessary steps in ensuring the Group’s future viability and growth. “As the Chelsea Group, the sector and broad economy recover from the COVID-19 pandemic, we continue to thank our creditors, suppliers and shareholders for their steadfast support in these difficult times.”

The Group’s shipping segment reported a 32 percent decline in revenues from P1.507 billion to P1.028 billion due to weak passage business, but was mitigated by the positive performance of its freight business. Passage revenues went down 83 percent to P71 million while freight revenues rose 20 percent to P618 million. Tankering revenues dropped 40 percent to P242 million from P401 million in the same period last year.

The logistics business reported a 19 percent increase in revenues to P126 million on the back of the continued reliance of the economy on logistics providers for the efficient and unhampered movement of goods within the country.

“Despite a decline in its topline, Chelsea Group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 17 percent to P551 million, as its various containment measures continued to bear fruit with operating expenses down by 47 percent from P317 million to P167 million,” the company said.

Meanwhile, Harbor Star posted a total service income of P427.47 million, higher by 15 percent than the P371.70 million posted in the same period last year.

The Group mainly sourced its 15 percent increase in service income from harbor assistance, net of discount of P261.32 million, revenue generation…

Read More: 2GO, Chelsea and Harbor Star incur net loss in Q1

Products You May Like