Chelsea Logistics And Infrastructure Highlights Milestones During 2024 Annual Stockholders’ Meeting

Chelsea Logistics and Infrastructure Holdings Corp. underscored significant milestones during its 2024 Annual Stockholders' Meeting (ASM), showcasing the company's strides in digital innovation and improved financial performance, as disclosed to the Philippine Stock Exchange (PSE).

Second-quarter revenues alone rose by 24% to PHP2.2 billion, fueled by higher passenger volumes, increased freight, more chartered vessels, enhanced tugboat operations, and growth in the B2B segment. I Photo: Chelsea Logistics Facebook

One of the key developments highlighted was Chelsea’s strategic alliance with Amazon Web Services (AWS), which enabled the company to transition to 100% cloud-based operations.

This shift not only enhanced operational efficiency but also aligned with the company’s commitment to Sustainable Development Goal No. 9.

The adoption of cloud technology has contributed to Chelsea’s sustainability efforts, reducing 3.3 metric tons of carbon dioxide emissions from April 2020 to December 2023.

Newly appointed Chief Finance Officer (CFO) Darlene A. Binay discussed the success of the company’s Liability Management Exercise (LME), which restructured loans to secure longer tenors and special lending rates from creditors.

This restructuring has freed up cash flow, allowing Chelsea to finance fleet drydocking requirements and other operational expenses during its recovery phase.

President and CEO Chryss Alfonsus V. Damuy reported that Chelsea's financial performance in the second quarter of 2024 achieved a Net Income Before Tax of PHP78 million, marking the company’s first positive quarter since the pandemic.

The improvement was driven by revenue growth, enhanced operational efficiency, and cost control, despite high finance costs.

As of the first half of 2024, Chelsea saw an 11% year-on-year revenue increase to PHP4 billion. Second-quarter revenues alone rose by 24% to PHP2.2 billion, fueled by higher passenger volumes, increased freight, more chartered vessels, enhanced tugboat operations, and growth in the B2B segment.

Year-to-date consolidated operating profit reached PHP443 million, reflecting significant year-on-year growth.

Damuy emphasized that the company will continue to expand revenue by focusing on market-responsive services, profitable routes, and revenue stream diversification.

Chelsea will also invest in technology to improve cost efficiency and customer experiences through automation and digitalization, explore strategic partnerships for growth, and maintain a stable balance sheet while managing debt to ensure liquidity.

Additionally, Chelsea welcomed former Philippine Airlines president Gilbert F. Santa Maria as the newest member of its Board of Directors. His extensive experience in the transportation and logistics industry is expected to provide valuable insights and drive further growth for the company.