Dennis Uy's Chelsea Logistics fails to hit profits as shipping costs weigh

Davao-based businessman Dennis Uy's Chelsea Logistics and Holdings Corp. failed to achieve profitability last year, even as the company hit all-time high revenues during the period.

In a regulatory filing on Monday, Chelsea Logistics said its revenues were up 35% to a record P7 billion in 2019, but cash flows were used for the company's expenses.

"Chelsea was not able to achieve profitability this year due to the full costing of ships deployed during the year but whose full revenue potential has yet to be realized as these revenues ramp up," the disclosure read.

It was referring to depreciation, financing costs, crew costs, insurance, and other related costs, both fixed and variable.

"Furthermore, there were additional interest expenses incurred for the acquisition of new vessels and a 2.5-hectare parcel of land and the construction of a warehouse complex for its fast-growing logistics business," the company said.

Chelsea Logistics last month confirmed that it has sought for a government guarantee for a P700-million loan to be used to buy a vessel.

The company is engaged in the shipping transport business through its wholly-owned subsidiaries Chelsea Shipping Corporation and Trans-Asia Shipping Lines Inc.

Chelsea Logistics has yet to file a comprehensive financial report for the full-year 2019. Earlier, it reported a 14.7% drop in its net income for the first half of the year at P308 million from P360 million in the same period in 2018. —KBK, GMA News