Chelsea, 2GO widen net losses in 2020

MANILA, Philippines — Shipping and logistic companies Chelsea Logistics and Infrastructure Holdings Corp. and 2GO Group Inc. saw their losses expand last year due to the impact of the pandemic.

Chelsea of Davao-based businessman Dennis Uy posted a net loss P3.31 billion in 2020, nearly triple the P832 million net loss recorded the previous year, while 2GO Group incurred a net loss of P1.8 billion last year, a 107 percent increase from 2019.

A significant portion of its net loss can be attributed to its share in net losses of 2GO Group and Dito totaling P483 million.

The quarantine restrictions greatly affected all revenue segments of the group, with revenues plunging 35 percent to P4.68 billion.

The passage segment recorded the biggest year-on-year drop in revenue at 65 percent due to the travel limitations.  The tinkering segment likewise saw a 41 percent revenue decline.

Chelsea said the freighter segment, which suffered a significant volume drop during the ECQ period, is now in the recovery phase with cargo movement increasing starting in the latter part of the second half of 2020.

Meanwhile, 2GO reported a 19 percent drop in revenues in 2020 at P17.4 billion from P21.41 billion the previous year.

2GO’s travel revenue declined by 78 percent year-on-year due to quarantine-related restrictions which started in mid-March and persisted throughout the rest of last year.

Freight revenue from shipping also fell 10 percent, while revenue from logistics and other services declined by 13 percent year-on-year.

Despite the challenges, 2GO said its management is confident the company will further grow and become an even stronger logistics solutions provider going forward.

“The group plans to achieve this through more streamlined operations and collaboration within its business units, investment in warehousing and logistics information technology solutions for customers, and synergies and best practices from its new shareholders,” 2GO said.

Chelsea last month signed agreements to sell its entire effective stake of around 31.73 percent in 2GO to SM Investments Corp. at P8.50 per share.

With the divestment, Chelsea said it would not be impacted by 2GO losses, which would aid the company in recovering from the current COVID-19 pandemic.