CHELSEA Logistics Holdings Corp., a company led by Davao businessman Dennis Uy, said its net profit grew by 22 percent last year to P161 million, from P137 million in 2016, which included a one-time gain on purchases amounting to P158 million.
The company said its growth was tempered due to almost doubling of its financing costs attributable to loans availed in proportion to the purchase of some of the new vessels.
“We will pursue our expansion strategies and find best ways to complement the current business operations with the ‘Build, Build, Build’ program of the Duterte administration,” Chelsea President and CEO Chryss Alfonsus V. Damuy said. “We intend to participate in the development of the infrastructure facilities and systems in the country, which includes, but not limited to, airport and port development and operations and other related facilities.”
The company said it generated P3.9 billion in revenues last year or more than double in 2016.
“But this was mainly due to its acquisition of a significant stake in 2Go Group Inc., and also the acquisition of 100-percent ownership of Starlite Ferries Inc. and Worklink Services Inc.”
These acquisitions resulted to additional freight revenues of P1.3 billion, passage revenues of P800 million and P200 million from logistics services.
Further, the revenues from tugs-assistance services provided by the company doubled to P263 million in 2017, from P118 million in 2016, but also a result of the acquisition of Davao Gulf Marine Services Inc., which contributed P121 million in total revenues.
“With the capital raised from our initial public offering on August 8, 2017, we were able to significantly expand our businesses and operations,” Damuy said. “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.”
The company used its subsidiaries late last year in buying four more vessels. Chelsea also ordered more during the first quarter of 2018, with expected deliveries within the year.
During the first quarter of the year, the company signed a contract with Kegoya Shipyard for the construction of one brand-new roll-on, roll-off passenger ship (RoPax) with an option to order for an additional three units with delivery dates from 2019 to 2020.
“We expect the benefits of the acquisitions of these vessels to be reflected in the profitability of the company beginning 2018,” Damuy said.
The company has a total of 75 vessels in its fleet. Chelsea claims its fleet captured 33 percent of the route market share and 36 percent of the RoPax, market based on gross registered tonnage. Chelsea also claims to be the market leader at 14 percent in terms of tanker capacity by GRT.