Chelsea Logistics profit falls 97% as finance costs surge

Davao-based tycoon Dennis A. Uy’s Chelsea Logistics and Infrastructure Holdings Corp. grew first-half revenue by 12 percent to P5.22 billion, but net income plunged 97 percent to P6.9 million as financing costs surged.

Finance costs jumped 65 percent to P721 million, overwhelming a 3-percent increase in operating income to P670 million, its latest quarterly report showed. 

The underlying businesses continued to expand, with Chelsea posting double-digit revenue growth across tugboat, freight and logistics operations.

“Looking ahead, we will build on this momentum to unlock new growth opportunities, maximize shareholder value, and stay at the forefront of powering the nation’s trade and connectivity,” Chelsea president and CEO Chryss Alfonsus Damuy said.

Dennis A. Uy 

Chelsea Logistics chair

Core businesses grow

Growth was broad across Chelsea’s operations:

• Tugboat revenue jumped 32 percent on improved fleet availability and new charter contracts.
• Freight revenue grew 22 percent, while logistics increased 14 percent.

Second-quarter revenue rose 15 percent to P2.96 billion, while net income fell 35 percent to P177 million as financing costs remained elevated.

Adding capacity

Chelsea deployed two new roll-on/roll-off passenger vessels, MV Starlite Resilience and MV Starlite Gratitude, expanding its fleet as it pursues further growth.

The group ended June with P32.83 billion in assets and P4.18 billion in equity, while earnings before interest, taxes, depreciation and amortization stood at P1.60 billion with a 31-percent margin.

—Edited by Miguel R. Camus