Chelsea Logistics Holdings Corp. of businessman Dennis Uy reported a net income of P161.2 million in 2017, up 22.4 percent from P131.7 million in the previous year, following recent acquisitions.
CLC said in a filing with the Philippine Stock Exchange CLC revenues more than doubled in 2017 to P3.9 billion from P1.63 billion in 2016, as the company’s acquisitions resulted in additional freight of P1.38 billion, passage revenues of ₱773.5 million and sales from logistics services of ₱243.8 million.
Tugboat fees also improved by over 100 percent to ₱261.3 million in 2017 from just ₱118.2 million in 2016 due to the acquisition of Davao Gulf Marine Services Inc., which contributed revenues of ₱121 million.
The increased port calls in Calaca Seaport (formerly Phoenix Petroterminals & Industrial Park) also contributed to higher tugboat fees.
Charter fees, meanwhile, declined 20 percent in 2017 due to the change in agreements involving M/T Great Diamond and M/T Great Princess, the two largest vessels registered in the Philippines.
“With the capital raised from our initial public offering on 8 August 2017, we were able to significantly expand our businesses and operations. As a result of the acquisitions during the last quarter of the year, we were able to increase our market share not only in the shipping industry but covering the end-to-end supply chain solution of the logistics industry,” CLC president and chief executive Chryss Alfonsus Damuy said.
Operating income jumped 133 percent to P517.3 milli from ₱221.7 million, while company’s EBITDA improved 81 percent to P1.36 billion from ₱756.2 million in 2016.
Cost and expenses also more than doubled to P2.86 billion from P1.26 billion in 2016 due to the strategic acquisitions. In addition, the increase in bunkering costs as a result of higher prices of fuel in the global market contributed to CLC raised P5.8 billion in proceeds during its IPO which enabled it acquire higher cost of sales and services.
CLC raised P5.8 billion in proceeds during its initial public offering, enabling it acquire higher cost of sales and services.