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Lorenzo Shipping Corp. recorded a net loss of P98.64 million in the first quarter of 2026, 43% lower than P172.77 million in the same period last year
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Revenue for the first three months of the year was 17% lower year-on-year to P354.31 million, as containers handled during the period was 8% lower due to fewer voyages resulting from reduced fleet capacity
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LSC is transitioning from active shipping operations toward a business model focused on strategically leasing assets to sister company NMC Container Lines, Inc. beginning June 2026
Domestic carrier Lorenzo Shipping Corp. (LSC) recorded a net loss of P98.64 million in the first quarter of 2026, 43% lower from P172.77 million in the same period last year.
Revenue for the first three months was 17% lower year-on-year to P354.31 million, as containers handled during the period was 8% lower due to fewer voyages resulting from reduced fleet capacity, LSC said in a regulatory disclosure.
Direct costs amounted to P364.83 million, a 23% decline year-on-year while general and administrative expenses dropped 23% to P30.15 million.
During the period, LSC also posted a net other income of P7.17 million, which was 371% higher than in 2025, attributable to cargo claims proceeds and the sale of fully depreciated assets in 2026.
In 2025, LSC reported a net loss of P601.78 million, higher than the P541.78 million net loss in 2024. Revenues in 2025 hit P1.49 billion, down 36% from the P2.34 billion in 2024.
READ: Lorenzo Shipping nine-month net loss widens 73% to P503M
On May 15, 2026, the LSC Board of Directors approved a resolution to transition from active shipping operations toward a business model focused on maximizing the value of its assets by strategically leasing them to other operating companies, in particular to sister company NMC Container Lines, Inc. (NMCCLI).
LSC said the transition towards the new business model will commence in June 2026 but will also be endorsed to the company’s stockholders for approval in the annual stockholders’ meeting in July.
LSC said this decision was driven by the company’s “commitment to navigating industry headwinds more effectively and proactively adapting to developments in the domestic shipping industry” and is “intended to strengthen revenue stability, preserve asset value, and ensure that the Company and its management remain able to fulfill their obligations to all stakeholders while continuing as a going concern.”
“The Board determined that this strategic transition is in the best long-term interests of the Company and its stakeholders, including shareholders, creditors, employees, customers, business partners, and regulators,” it added.
READ: Lorenzo Shipping to shift from shipping to leasing assets
In an earlier statement to PortCalls, Magsaysay Shipping and Logistics Group (MSL) said it is reactivating NMCCLI as the group’s operating platform for commercial shipping as part of the former’s approved strategic pivot within its container shipping division.
To support the transition, NMCCLI will lease the vessels and other assets of LSC to enhance fleet operations.
According to Magsaysay Groups’ MSL website, Lorenzo Shipping is their leading liner shipping company engaged in containerized cargo transport while NMCCLI has been operating as MSL’s vessel service provider to major ports of the Philippines.
Both NMCCLI and LSC will remain active and integrated under MSL “ensuring operational continuity and uninterrupted service and support for all customers and supplier partners.”
MSL said positioning NMCCLI as the group’s primary operating entity creates a more efficient and dynamic platform to better respond to the evolving needs of the domestic shipping market.
At the same time, the structure enables LSC to focus on maximizing the value of its assets through a dedicated leasing model designed to support long-term financial stability and sustainability.
“As the domestic shipping industry evolves, this move allows us to strengthen the overall container shipping platform of the MSL group while ensuring continuity and reliability for our customers,” LSC president and chief operating officer Reynold John Madamba said. “By transitioning commercial operations to NMCCLI, we are creating a more flexible and resilient operating model for the future.”
