Chelsea trims net loss; debt relief sought

0
196

CHELSEA Logistics and Infrastructure Holdings Corp. slightly trimmed its second-quarter attributable net loss to P856 million from a loss of P941.1 million in the same period a year ago.

Total revenues for the quarter slightly increased 1.8% to P976 million from P959 million in the previous year, the company’s second-quarter results showed.

For the first half, Chelsea Logistics also slightly trimmed its net loss attributable to the parent equity holder to P1.1 billion from a loss of P1.2 billion in the same period last year.

Total revenues for the first six months fell 19.2% to P2.1 billion from P2.6 billion in the previous year.

The company attributed the decline to “full period effect of the community quarantine that the government has imposed since March 15, 2020.”

“The movement of petroleum products and passengers remained low despite the gradual lifting of travel restrictions. Tankering and passenger segments were down from 2020 by 56% and 70%, respectively,” it said.

The company added that the revenue decline “was tempered due to positive variance in its freight and logistics segments revenue, which is up by 28% and 67%, respectively versus last year.”

To soften the impact of the coronavirus pandemic on its financial condition, Chelsea said it invoked the provisions of the recently approved Bayanihan To Heal As One Act and Bayanihan to Recover as One Act, “which allowed the group to extend for a minimum of 30 days the currently maturing debt obligations, including interest.”

Chelsea Logistics also availed of the Development Bank of the Philippines’ RESPONSE or rehabilitation support on severe events program, “wherein the borrower may defer its loan repayment of up to six months with the option for restructuring in case the borrower is not able to recover within six months.”

“Lastly, the group has negotiated with banks for the refinancing, extension, or temporary relief of its loan obligations,” it added.

Chelsea Logistics shares closed 3.37% lower at P2.58 apiece on Tuesday. — Arjay L. Balinbin