Chelsea Logistics Holdings Corp. said Thursday net income jumped four times to P405.7 million in the first nine months from P102 million a year ago, as strategic investments continued to deliver and operations expanded.
Chelsea, the shipping business of Davao-based businessman Dennis Uy, said in a statement revenues increased 9 percent in the nine-month period to P2.3.billion.
“Our investments into better shipping and logistics continued to yield results and create more value for our investors, business partners and other stakeholders,” CLC president and chief executive Chryss Alfonsus Damuy said.
The increase in net income reflected the P168.1 million recognized by the company as equity shares in the net income of Negros Navigation Co. Inc. and 2Go Group Inc. through its investments in Udenna Investments B.V.
Freight revenues rose 43 percent to P646.4 million from a year ago, largely from the commercial operations of MV Trans-Asia 12. The vessel only started plying the Manila-Cebu route in August 2016.
Passage revenues also grew 10 percent to P339.5 million, following an increase in the number of passengers.
Tugboats fees, meanwhile, rose 15 percent to P192.7 million, on the back of a 51-percent increase in port calls at Calaca Seaport (formerly Phoenix Petroterminals & Industrial Park) and the operations of Fortis Tugs Corp. in Keppel Batangas.
Higher revenues from the freight, passage and tugboat operations offset the 4-percent decline in charter fees to about P1.09 billion.
The decrease in charter fees primarily resulted from the change in the nature of agreements governing the chartering of M/T Great Diamond (formerly Chelsea Thelma) and M/T Great Princess (formerly Chelsea Donatela).
CLC entered into a bareboat charter with a Vietnam-based firm for M/T Great Diamond and M/T Great Princess effective November 2016 and March 2017. Both were previously under voyage charter, which required the company to shoulder all costs but would provide for higher revenues.
The company trimmed its costs of sales and services by 5 percent to P1.48 billion from P1.55 billion, following the commissioning of M/T Great Diamond and M/T Great Princess on a bareboat charter.
“As we continue to expand and improve our operations, we hope to sail further in providing better shipping and logistics services to customers; delivering more value to investors and business partners; and contributing bigger to our growing economy,” Damuy said.
The shipping and logistics business of the Udenna Group started in 2006 with the acquisition of a tanker in support of the operations of the country’s leading independent and fastest-growing oil company, Phoenix Petroleum Philippines Inc.
