Chelsea Logistics Holdings Corp., a listed company led by Davao City-based businessman Dennis Uy, declared a net loss of P551 million in 2018, a reversal from the P161-million net profit registered in 2017.
CLC said in a disclosure to the stock exchange a significant portion of the net loss could be attributed to its share in net losses of shipping company 2Go Group Inc. amounting to P453 million.
It said excluding the amount, CLC would have reported a net loss of just P98 million, which was primarily due to higher bunkering costs and increased interest rates.
CLC said the 2018 revenues rose 32 percent to P5.17 billion from P3.9 billion as each business segment of the group showed double-digit growth in sales.
CLC said tankering revenues increased 43 percent to P1.74 billion as a result of higher freight rates while freight revenues went up 23 percent to P1.7 billion following the acquisition of three freighters in November 2017.
Passage revenues grew 25 percent to P969 million while tugboat fees and logistics rose 28 percent and 20 percent, respectively.
Costs of sales and services surged 43 percent to P1.24 billion from P867 million with the deployment of additional vessels and higher fuel price caused by an increase in the benchmark rates in the international market and the implementation of excise taxes on petroleum products.
CLC, which is currently being transformed as the logistics and infrastructure arm of Uy, earlier reported plans of issuing up to P7 billion in fixed-rate bonds to finance expansion plans for 2019.
It tapped Credit Rating and Investors Services Philippines Inc. to conduct a rating on the company in preparation for the planned borrowing.
The company also signed shipbuilding contracts for the delivery of two passenger ferry ships for P1.87 billion
CLC secured the original proponent status for four infrastructure projects, including the P49-billion offer to develop and operate the Davao International Airport, the P11.2-billion proposal to develop and operate the Sasa Port in Davao City, a monorail system in Davao City and a light rail system in Cebu.