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Lorenzo Shipping significantly reduced its net loss for the first six months of 2021 by 90.5%
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Revenues were up 11.8% year-on-year as containers handled for the period grew by 9%
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Direct costs increased 7% as a result of more voyages, higher fuel consumption and proportionate increases in service voyage expenses, and other direct costs
Domestic carrier Lorenzo Shipping Corp. (LSC) significantly reduced its net loss for the first six months of 2021 to P7.13 million, 90.5% lower than the P75.434 million recorded in the same period last year as volumes handled grew.
Revenues for the first semester of the year amounted to P1.497 billion, 11.8% higher than the P1.339 billion reported in the same period in 2020.
In a regulatory disclosure, LSC said it handled 9% higher container volumes this year compared to last year.
Direct costs, however, increased 7% to P1.423 billion from last year’s P1.331 billion due to more voyages, higher fuel consumption and proportionate increases in service voyage expenses, and other direct costs.
General and administrative expenses were also up by 12% to P60.77 million from P54.24 million.
LSC said it conducted a series of recovery strategies that bore fruit during the first quarter but whose outcome was slightly delayed during the second quarter due to a slowdown in domestic consumption after the enhanced community quarantine was re-implemented in mid-March.
The carrier said these activities will still be pursued and adjusted accordingly as contribution margin and EBITDA (earnings before interest, taxes, depreciation, and amortization) continue to improve compared to the previous year.
Existing plans and programs will also remain to prepare for resumption of the economy towards the latter part of 2021.
For this year, LSC said vessel and service integrity remains one of the company’s top priorities despite varying quarantine restrictions nationwide.
The carrier said load factor and route optimization are an ongoing prerogative in view of the expected contraction in overall market volume due to the extended lockdown. It also aims to rationalize resources and operating costs while maintaining quality and efficiency by employing technology.
LSC is closely monitoring and strictly managing billing and collection processes to ensure cash flow and liquidity.
Excess capacity and non-profitable lanes will be reevaluated and remodeled.
To ensure well-being of its workforce, the company carried out regular campaigns on COVID-19 prevention and vaccination awareness, inoculation, wellness seminars, and employee surveys, along with conducting standard health and safety protocols in all vessels, offices, and yards.
LSC operates a fleet of nine vessels deployed to key ports in Manila, Visayas and Mindanao. Vessels have a capacity ranging from 300 twenty-foot equivalent units to 797 TEUs with speeds of 11 knots to 15 knots.
It owns various types of equipment as well as facilities for handling cargoes, including land-based forklifts, top lifts, trucks, container yards, and warehouses at its branches and agencies.
