Chelsea Logistics profit nearly doubles in H1

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NEWLY listed Chelsea Logistics Holdings Corp. (CLC) reported on Friday a 93 percent increase in net income in the first half of 2017 to P399.8 million from P207 million in the same period last year on the back of increased freight revenues.

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CLC said revenues grew 9 percent to P1.54 billion in the first six months of the year from P1.40 billion in the same period in 2016.

It said freight revenues increased primarily due to the commercial operations of MV Trans-Asia 12, which plies the Manila-Cebu route, while there was also an increase in tugboat fees due to more port calls.

The company remains bullish about the outlook for the rest of the year and onward, with CLC Chairman Dennis Uy citing the “bright prospects of the shipping and logistics industry amid increased trade opportunities within and outside the country.”

CLC recently conducted an initial public offering of 546.6 million shares, raising as much as P5.84 billion during the offer period on from July 24 to 31.

The net proceeds were earmarked for fleet expansion, purchase and upgrade of ports, port facilities, containers, machinery and equipment; acquisition of other shipping and logistics firms; and general corporate purposes.

CLC has taken over the management of 2GO Group after it acquired a 28.15 percent indirect economic interest last March.

Earlier, CLC signed a $220-million bridge loan agreement with the Bank of China, with the latter’s commitment to help spur economic growth in the Philippines.

Uy said CLC aspires “to be a super shipping logistics company,” offering end-to-end solutions from manufacturing to the consumers.

He also said that CLC wants to modernize and add fleet to the existing ones depending on market demand. CLC reported to have 34 vessels at the end of 2016.

The Company currently has 11 tankers, eight tugboats, seven roll-on/ roll-off vessels with passenger accommodation (RoPax), four barges and three cargo ships. 2GO, meanwhile, has 17 RoPax and eight cargo vessels.

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