The P1.6 billion dacion en pago deal, a debt settlement method where assets are used as payment, for the property in Brgy. Ligid-Tipas, Taguig covers loan and interest payments to Chinabank, a recent regulatory filing showed.
This also enabled Chelsea Logistics to record P458 million in other income, helping the company post a net income of P177 million in 2024—a sharp turnaround from P1.4 billion in losses the previous year.
Without these gains, the firm would have seen losses continue in 2024.
What was the property for?
Chelsea Logistics borrowed P800 million from Chinabank in 2019 to purchase the land, which it planned to use as a warehouse for an e-commerce venture, the firm's filing showed.
This was abandoned during the tail-end of the global pandemic in 2022, causing the company to write off construction costs worth P233 million.
Chinabank had entered into similar agreements with Uy’s debt-laden group in the past.
In 2023, it sealed a debt restructuring deal with Uy’s PH Resorts Group to purchase and lease back a 12.5-hectare property that serves as the site of the stalled Emerald Bay casino project in Cebu.
Chelsea revenues, costs improved in 2024
• Revenue rose 14 percent to ₱8 billion, driven by higher freight and passenger volumes, new routes, and improved fleet deployment.
• Operating expenses dropped 23 percent.
• Operating profit hit ₱431 million, reversing a ₱44 million loss from the previous year.
• Chartering of five new vessels brought the fleet to 54, supporting expanded routes and increased trip frequency.
• It finished 2024 with P16.07 billion in debts, including P2.11 billion in current loans.
Growth drivers
The company said its passage and freight sectors grew by 20 percent and 9 percent, respectively.
“These increases were fueled by higher passenger and cargo volumes, improved rates, and the addition of more trading vessels and ports of call,” the logistics firm said in a statement.
The company’s units include Chelsea Shipping, Trans-Asia Shipping Lines, Starlite Ferries and Super Cat.
Management’s view
“In 2024, the Group focused on stabilizing its operations amidst the impact of the global pandemic and uneven progress of recovery in certain markets and industries,” Chelsea Logistics president and CEO Chryss Alfonsus V. Damuy said in the statement.
“Looking ahead, we will continue to leverage innovative digital solutions to bridge gaps, foster collaboration, and enhance our services,” he added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
