CHELSEA Logistics Corp. said on Wednesday it generated net profit of P161 million in 2017, an increase of 22 percent from the P137 million posted in 2016, driven by higher freight and passage revenues as a result of new acquisitions.
The tempered growth was attributed to a 100 percent increase in financing costs due to loans availed in proportion to the purchase of some new vessels.
“We will pursue our expansion strategies and find best ways to complement the current business operations with the Build, Build, Build program of the Duterte administration,” CLC President and Chief Executive Officer Chryss Alfonsus Damuy said in a statement.
“We intend to participate in the development of the infrastructure facilities and systems in the country, which includes but is not limited to airport and port development and operations and other related facilities,” Damuy added.
Revenues surged 140 percent to P3.9 billion in 2017 from P2.9 billion in 2016.
This was attributed to the acquisition of a 100 percent stake in Starlite Ferries Inc, and Worklink Services, Inc, which resulted in additional freight revenues of P1.3 billion, passage revenues of P800 million, and logistics services revenues of P 200 million.
Revenue from tugs assistance also doubled to P263 million in 2017 as a result of the acquisition of Davao Gulf Marine Services Inc.
“With the capital raised from our initial public offering on August 8, 2017, we were able to significantly expand our businesses and operations. As result of the acquisitions during the last quarter of the year, we were able to increase our market share not only in the shipping industry but covering the end-to-end supply chain solutions of the logistics industry,” Damuy said.