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Lorenzo Shipping reported a net income of P51.06 million in the first quarter of 2023
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The latest figure is a turnaround from the P30.83 million net loss posted in the same period in 2022
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The increase in profit was due mainly to the carrier’s cost rationalization program and its efforts to recover the inflationary costs by implementing freight rate adjustments, the company said
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Containers handled in the first quarter declined 15.09% year-on-year
Lorenzo Shipping Corp. (LSC) reported a net income of P51.06 million in the first quarter of 2023, a turnaround from the P30.83 million net loss posted in the same period in 2022.
The increase in profit was due mainly to the carrier’s cost rationalization program and its “determined efforts to recover the inflationary costs by implementing freight rate adjustments,” the domestic carrier said in a regulatory disclosure.
Revenue for the first three months of the year amounted to P905.13 million, 13.8% higher than the P795.172 million reported in the same period in 2022.
LSC said the increase in revenue was due to efforts to recover increasing costs through surcharges and freight adjustments. The increase is despite a 15.09% year-on-year decline in containers handled in the first quarter due to fewer voyages brought about by reduced fleet capacity combined with prevalent port congestion.
Direct costs decreased 1.5% to P784.418 million in the first quarter of the year from P796.740 million in the same period last year.
Faced with multiple challenges, such as persistent inflation, high-interest rates, a continuing global recession, and erratic domestic consumption, LSC said it “thrives and adjusts accordingly through continuous process improvements and efficiencies.”
LSC said it will continue to be guided by its management principles, which include fleet availability and schedule integrity as one of the top priorities and vessel drydocking and equipment maintenance as keys to service dependability. Plans also include, among others, optimum route and cargo mix to achieve yield maximization and digitalization and use of technology to significantly contribute to more streamlined operations.
Last year, LSC reported a net income of P18.60 million in 2022, its first reported annual income since the domestic carrier started posting annual losses since 2015.
LSC operates nine vessels that call 10 major ports in the country. It has evolved from being a provider of port-to-port and door-to-door services for full container load and less-than container load shipments into a solutions provider company capitalizing on the logistics strengths of its affiliates.
