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Lorenzo Shipping Corp. will transition from active shipping operations to leasing its assets as a new plan of action
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The transition 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 during a time where various factors critically impact the domestic shipping industry
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The Board will endorse the plan to the company’s stockholders for approval in the coming annual stockholders’ meeting in June
Lorenzo Shipping Corp. (LSC) will transition from active shipping operations to leasing its assets as a new plan of action amid the impact of various factors currently affecting the domestic shipping industry.
In a regulatory disclosure on May 15, LSC said its Board of Directors in a meeting on the same day approved the new plan, whereby the company “will 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.”
“The transition 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 during a time where various factors critically impact the domestic shipping industry,” LSC said.
The Board will endorse the plan to the company’s stockholders for approval in the coming annual stockholders’ meeting in June.
PortCalls has reached out to LSC for additional information on its new plan, but has yet to receive a response as of press time.
READ: Lorenzo Shipping nine-month net loss widens 73% to P503M
The domestic shipping industry is one of the sectors affected by the fuel crisis resulting from the Middle East conflict. Bunker fuel accounts for a huge portion of shipping lines’ operational costs and the increase in fuel prices since late February has prompted carriers to hike rates or impose fuel surcharge.
LSC is one of the key players in the domestic containerized cargo shipping industry calling in key ports in the country. According to its website, it maintains a fleet of five container ships with an additional four container vessels owned by sister carrier NMC Container Lines, Inc. LSC also owns various equipment and facilities, including land-based equipment such as forklifts, top lifts and trucks; and container yards and warehouses in its branches and agencies.
