Chelsea Logistics and Infrastructure Holdings Corp., a debt-saddled company of Davao-based businessman Dennis Uy, said its recent liability management exercise has brought it financial relief and better financial results that it hopes to sustain with cost management and improved operational efficiency.
At the company’s annual meeting last week, Chelsea Logistics’ newly appointed chief finance officer Darlene A. Binay said the liability management exercise, which includes loan restructuring that lengthened the loan term and improved lending rates, has had positive impacts on the company’s recovery. She added the financial relief has freed up cash for critical needs, including the drydocking requirements of its fleet and other operating expenses.To sustain the 58 percent reduction in losses achieved in 2023, the Chelsea Group is committed to ongoing operational cost management and efficiency improvements across all segments.
“The Company will increase revenues by expanding services which are responsive to market conditions and focus on profitable routes, and also diversify revenue streams. We will continue to invest in technology as automation and digitalization lead to cost savings and better customer experiences. We will explore strategic partnerships for growth and cost-sharing. Finally, we will maintain a stable balance sheet and manage debt levels to ensure liquidity,” said Alfonsus Damuy, company president and chief executive officer.
As part of its digital transformation, Chelsea Logistics formed a strategic alliance with Amazon Web Services to enable the listed company to fully transition to cloud-based operations. The initiative not only enhances operational efficiency but also aligns with the company’s commitment to Sustainable Development Goal #9.
Chelsea Logistics achieved a consolidated operating profit of P443 million on an 11 percent increase in first half revenue to P4 billion. This helped cut the company’s net loss before tax by 83 percent to P70 million in 2024, largely due to high interest expenses.In the second quarter alone, the company posted a net income before tax of P78 million, its first positive quarterly income since the pandemic. Chelsea Logistics attributed this gain to revenue growth, operational optimization, and effective cost containment measures.
Additionally, Chelsea Logistics welcomed Gilbert F. Santa Maria as an independent director on its Board, whose extensive expertise in transportation and logistics is expected to drive further growth for the company.
