Chelsea Logistics works on finding new fund sources

CHELSEA Logistics and Infrastructure Holdings Corp. is keen on getting more sources of investments to fund the company’s recovery program from the pandemic.

“The team is exerting efforts to raise funds, which can be from a combination of fresh capital from existing shareholders, new share issuances, and inviting strategic partners,” Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy said during the company’s annual stockholders meeting via Zoom on Tuesday.

Banking on the economy and businesses’ road to recovery, Mr. Damuy said that the company will be in a position to engage with potential partners — local or foreign.

He added that Republic Act No. 11659 or the Public Service Act excludes shipping services as a public utility, exempting the company from foreign ownership restriction and giving it more flexibility in getting possible strategic partners.

Mr. Damuy said that recurring cash inflow is not substantial enough to cover the recovery program that the logistics company is currently undertaking, thus the need to look for new sources of funds.

“The improvement in the cash flow supports the company’s operating requirements not limited to dry dock and ship repairs,” he said.

“This cash inflow is one of the immediate sources of funds as the group’s business continued to improve and recover. However, we understand that this will not be enough to fully sustain the recovery and our company growth,” he added.

By the end-2030, the company is targeting to shift its business to be fully cloud-based with a partnership with Amazon Web Services.

“We are thrilled to reap not only the operational benefits of being in the cloud but also the significant impact we can contribute to the environment,” Mr. Damuy said.

To date, the company has already shifted 90% of its system to cloud-based.

Mr. Damuy said huge and limitless opportunities exist for the shipping and logistics sector.

“The outlook for the shipping and logistics sector is favorable, as global and domestic markets reopen, improving trades in and out of the ports,” he said.

“Moreover, the e-commerce industry in the Philippines is an exciting and ever-growing sector providing multiple opportunities for businesses to expand their reach,” he added.

In 2022, the company trimmed its net loss attributable to shareholders to P2.53 billion from P3.91 billion in 2021. Its top line reached P6.43 billion, 43.9% higher than the P4.47 billion recorded previously.

On Tuesday, shares in Chelsea Logistics climbed two centavos or by 1.7% to P1.17 each. — Justine Irish DP. Tabile