Chelsea Logistics and Infrastructure Holdings Corp., the shipping and logistics arm of the Udenna Group by Davao-based businessman Dennis Uy, reported a P1.04 billion net loss for the first nine months of this year, lower than its net loss of P1.49 billion recorded in 2022.

In a Philippine Stock Exchange (PSE) disclosure, the group noted that the effects of a non-cash asset impairment of P81 million from a joint venture, and P90 million loss on a vessel sale, as well as interest expense during the third quarter “resulted to a net loss before tax of P1.037 billion as of Sept. 30, 2023, or a per share loss of P0.32, a 30 percent reduction compared with a net loss of ₱1.492 billion, or a P0.796 loss per basic and diluted share the same period in 2022.”

On the other hand, Chelsea’s revenues grew 15 percent to P5.35 billion for the nine-month period in 2023 from P4.63 billion last year.

The shipping business’ revenues, which represents 93 percent of the group’s total revenues, grew 17 percent to P5 billion this year.

The Passage segment revenues jumped 61 percent to P1.4 billion this year from P887 million in 2022 driven by post-pandemic travel and tourism, and its route expansion and digitalization initiatives owing to the upgrades of the Chelsea Travel online booking app.

The Passage business is also the biggest contributor, accounting for 27 percent of consolidated revenues.

The Freight business also climbed by nine percent to P2.7 billion this year from P2.4 billion last year due to increased cargo volume. However, low tug rates and drydocking of a tanker brought down the revenues of its charter and tugboat fees by nine percent to P462 million and eight percent to P281 million respectively.

Meanwhile, its logistics revenues dipped by six percent to P378 million in 2023 due to a decline in its warehousing segment revenue.

Growth was recorded in terms of earnings before income, tax, depreciation, and amortization (EBITDA), which surged by 168 percent to P1.1 billion in 2023 from P410 Million in 2022, and consolidated gross profit to P1.102 billion from P354 million last year.

Operating expenses stood at 19 percent of revenues driven by increase in labor and labor costs by 29 percent to P269 million as vacant positions were filled.

Operating results for the nine-month period also turned to a profit of P43 million from a loss of P498 million in 2022.

The group said that the positive changes were achieved “despite the lingering effects of the pandemic which continued to weigh down the business, including vessel availability issues due to extended drydocking, volatile fuel costs, and inflation.”

Chelsea Logistics President & CEO Chryss Alfonsus V. Damuy said, “to sustain our growth momentum, the Group will continue to go the extra mile to strengthen the four areas vital to the profitability of the shipping and logistics business: Fleet Availability, Customer Experience, Operational Excellence, and Technology Advancements.”

Chelsea Logistics CFO Ignacia S. Braga IV added the group is confident that they will maintain their momentum and meet strategic objectives during this fourth quarter.

“We have a robust pipeline of new products and services, a devoted and expanding customer base, and a clear vision for the future,” he said.