Chelsea Logistics and Infrastructure Holdings Corp. reported a 34.8% decline in second-quarter (Q2) attributable net income to P177.41 million, as rising expenses outweighed revenue growth during the period.

The company, a subsidiary of Dennis Uy-led Udenna Corp., operates tanker, cargo and passenger shipping as well as harbor services, plying routes across the Philippine archipelago where sea transport is the main link between islands for goods and travelers.

According to the company's quarterly financial report released Monday, gross revenue for the three months ended June increased 15.62% to P2.96 billion from P2.56 billion a year earlier. Gross expenses, however, climbed 19.62% to P2.50 billion from P2.09 billion.

The first-half decline was far steeper. Attributable net income plunged 97% to P6.90 million from P231.36 million a year earlier, despite higher revenue during the period. Gross revenue for the six months ended June rose 12.01% to P5.22 billion from P4.66 billion, while consolidated expenses increased 13.47% to P4.55 billion from P4.01 billion.

"While the Group's core operations are domestic, global instability may give rise to exposure through fuel and lubricant price volatility, global supply chain disruptions for vessel spare parts and technical components, foreign exchange fluctuations, and broader macroeconomic pressures," the company said.

Chief Finance Officer Darlene A. Binay said cost management helped the company maintain efficiency under difficult conditions. "Strict cost discipline enabled the Chelsea Group to enhance operational efficiency despite headwinds from high fuel costs, debt servicing, and foreign exchange volatility," she said in a media release.

The company attributed its revenue growth to higher volumes and rate gains across its operating segments. Freight accounted for the bulk of first-half revenue at P2.56 billion, followed by passage at P1.54 billion, charter fees at P369.58 million, tugboat fees at P222.28 million, and other service revenues at P417.82 million. The mix reflects the span of the business, from cargo carriage and passenger ferry travel on island routes to vessel charters and harbor tugboat assistance.

President and Chief Executive Officer Chryss Alfonsus V. Damuy said the company intends to sustain its performance. "Looking ahead, we will build on this momentum to unlock new growth opportunities, maximize shareholder value, and stay at the forefront of powering the nation's trade and connectivity," he said. His outlook comes as the company has flagged fuel and lubricant price volatility, foreign exchange movements and vessel spare parts supply chains as ongoing exposures bearing on its cost base.

At the local bourse, Chelsea Logistics shares closed unchanged at 87 centavos apiece. — Ashley Erika O. Jose