MANILA – Chelsea Logistics and Infrastructure Holdings posted a net loss of P3.311 billion in 2020 due to the impact of the COVID-19 and has initiated “painful” cost-cutting measures to stay afloat, it said.
“Severe restrictions” imposed in mid-March 2020 due to COVID-19 dragged revenues down by 35 percent year-on-year to P4.679 billion, Chelsea Logistics said in a disclosure to the stock exchange.
The Philippines imposed one of the world's strictest and longest lockdowns which started in March 2020 to curb the spread of COVID-19.
Passage revenues plunged 65 percent while freight revenues declined 22 percent, it said.
The group implemented cost-cutting measures to mitigate losses including workforce rationalization, improved vessel utilization, route utilization, enhanced revenue management, disposal of aging and non-performing vessels, suspension of uncommitted capital expenditures and other initiatives, it said.
The freight segment, however, showed signs of recovery in the fourth quarter increasing revenues by 155 percent quarter-on-quarter, Chelsea Logistics said.
“The 2020 financial results were disappointing with a wider loss compared to the previous year. However, we have seen some segment-specific recoveries in the fourth quarter. Throughout the year we continued to work on preparing the Group for a recovery that we see will happen by the second half of 2021,” said Chelsea president and CEO Chryss Alfonsus V. Damuy.
“The group’s cost-containment initiatives were painful but necessary to ensure its future viability and growth. This is a short-term pain for long-term gain,” said Chelsea CFO Ignacia Braga IV.
Chelsea Logistics earlier announced it would dispose its equity interest in its 2Go Group Inc business.
Many other firms have reported net losses or a decline in profit last year due to the impact of COVID-19 lockdowns.