CHELSEA Logistics and Infrastructure Holdings Corp. said on Monday it would continue with cost-cutting measures to improve its financial health, as it expects to recover from the effects of the international health crisis in the second half of 2021.
The measures it implements include”workforce rationalization, enhanced vessel utilization, increased revenue management, cost-cutting plans, and suspension of uncommitted capital expenditure programs.”
Mr. Damuy noted that such measures are already starting to positively impact the company’s operations. The company has yet to disclose its full quarterly report.
In its statement, the company stated its nine-month revenues decreased by 35 percent to P3.31 billion.
Chelsea Logistics attributed the decline to the”continued community quarantine measures imposed all over the country that negatively affected its operation.”
“Passenger travels are at their lowest and freight movement has also materially declined, which led to a P2.601-billion net loss in [the nine-month period], a substantial reversal from the P20-million net profit registered in exactly the same period last year,” it added.
The business saw its shipping business revenues decline by 37% year-on-year to P3.08 billion,”mainly due to a 93% decline in passage revenues… to just P25 million” in the third quarter.
“On a consolidated 9 month foundation, Chelsea’s freight sales have declined by 24 percent, as the quarantine steps brought less demand, resulting in a lower voyage trips,” it added.
The firm has posted net losses of 1.29-B as of September, compared with operating profits of 961-m last year.
“This was due to a sequentially bigger operating loss in the third quarter of P1.01 billion versus P318 million in the preceding quarter,” the company noted.
Chelsea Logistics stated further, its cost-cutting measures have caused the decline in its operating and finance expenditures” for the second consecutive quarter.”
Finance charges also have gone down from P350 million in the first quarter to P321 million final quarter, and down to P320 million in the third quarter, it added.