Chelsea Logistics and Infrastructure Holdings Corp. reported a net profit of P177 million for 2024, a sharp reversal from P1.14 billion net loss in 2023. The net profit is also 24 percent higher compared to its net income when it listed in 2017, underscoring the company’s resilience and commitment to long-term sustainable growth.
Chelsea said its financial recovery was primarily driven by a 14 percent increase in revenue, which reached a record-high P8 billion. Its improved performance was fueled by rising freight and passenger volumes, enhanced rates, and a strategic expansion of its fleet and port facilities.
A key factor in this recovery was a 23 percent reduction in other operating expenses, which contributed to a nearly 11-fold increase in operating profit compared to the previous year.
Chelsea chief financial officer Darlene A. Binay attributed this positive performance to a range of cost-efficiency initiatives. These included savings from outside services and dues, controlled operating expenses, and a notable reduction in interest expenses due to a successful Liability Management Exercise. These efforts resulted in improved stockholders’ equity, a stronger current ratio, and a lower debt-to-equity ratio.
President and CEO Chryss Alfonsus V. Damuy explained that the company was proactive in mitigating operational challenges, such as vessel availability and drydocking disruptions. The company responded by redeploying vessels to higher-yield routes, time-chartering additional RoRo vessels and tugboats, and optimizing maintenance schedules to minimize vessel downtime.
Chelsea also took a strategic step to improve liquidity, executing a dacion-en-pago or payment in kind transaction involving part of its Taguig City real estate, which led to a reduction in consolidated total assets and current liabilities.
