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Lorenzo Shipping swung to a net loss of P163.77 million in the first half of 2024 from a net income of P130.48 million year-on-year
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The reversal was due mainly to less voyages made
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The reduced voyages, attributable to a slowdown in domestic consumption coupled with necessary maintenance and repairs for several vessels, sank revenues by 26% to P1.295 billion
Lorenzo Shipping Corp. (LSC) swung to a net loss of P163.77 million in the first half of 2024 from a net income of P130.48 million year-on-year.
In a regulatory disclosure, the domestic carrier said the reversal was due mainly to significantly lower revenue following fewer voyages made which, in turn, resulted from a slowdown in domestic consumption coupled with maintenance and repairs for several vessels.
Revenue from January to June 2024 sank 26% to P1.295 billion from P1.759 billion in the same period last year, as container volumes handled dropped 2.94% during the period.
General and administrative expenses stood at P102.11 million, slightly lower than the P102.3 million last year while net finance costs amounted to P30.03 million, 9% higher than the P27.44 million in 2023 due to higher interest rates.
LSC said it is focusing on restoring schedule integrity as it continuously implements operational efficiency measures such as digitalization, systems upgrade, quality initiatives, cost rationalization, and asset optimization.
“With the expected upturn in domestic consumption for the second half of the year, emphasis will be given to the flexibility of operating strategies while maintaining discipline and excellence,” the carrier said.
For the second half of the year, LSC’s plan of operation includes, among others, vigilance on vessel and equipment maintenance and service reliability to improve customer experience on cargo deliveries.
The carrier will also focus on maximizing yield per container per voyage to offset the escalation of various expenses and other inflationary effects, while also continuing with process improvements and innovation to significantly contribute to more efficient operations.
LSC operates eight vessels that call on 10 major ports nationwide. – Roumina Pablo
