Chelsea trims net loss by 7% in H1

MANILA, Philippines — Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp. managed to cut its net loss by seven percent in the first semester.

Chelsea yesterday disclosed that its net loss decreased by seven percent to P1 billion in the first half  from P1.07 billion a year ago, on improved performance across its business segments.

During the period, revenues generated by Chelsea jumped by 37 percent to P2.91 billion from P2.13 billion due to  the reopening of  the economy.

The passage bracket, for one, spiked six times to P357 million with travel and tourism picking up pace in the first semester. On the other hand, the freight division went up by 28 percent to P1.59 billion and accounted for half of Chelsea’s revenue.

However, Chelsea also took a hit from the elevated fuel prices triggered by supply disruptions due to Russia’s invasion of Ukraine. Cost of sales and services went up by 16 percent to P2.64 billion, with bunkering expenses up to P1.18 billion as a result of oil price hikes.

In its financial statement, Chelsea said it plans to issue new shares or sell some assets to trim its liabilities.

“The group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets,” Chelsea said.

“In order to maintain or adjust capital structure, the Chelsea Group may issue new shares or sell assets to reduce debt,” it added.

Liabilities owed by Chelsea widened by three percent to P29.2 billion in the first semester, while its equity declined by 16 percent to P4.73 billion. As such, Chelsea’s debt-to-equity ratio swelled to 6.17 as against a year ago’s 5.04.

Chelsea president and CEO Chryss Alfonsus Damuy said the firm is encouraged by the across the board growth in its revenue, particularly in the passage segment. In the face of rising costs, Chelsea will bank on its recovering income to trim its losses moving forward.

For the second semester, Damuy said Chelsea will maximize the use of Chelsea Travel, its app dedicated for streamlining the booking system for passengers.

“We are hopeful that passage revenues soon revert to pre-lockdown levels,” Damuy said.