Asia/Pacific News
Lorenzo Shipping Profits Slip 78% for 2011
Lorenzo Shipping Corporation (LSC) has posted a 78% fall in profits for 2011.
In its disclosure at the Philippine Stock Exchange, the company said it had a net income of P11.2 million in 2011, compared with this year’s P52-million profit.
Freight revenues for the Manila-based box shipper rose 10% to P1.72 billion, primarily as a result of increasing its bunker surcharges during the early part of the year.
But the gains were not enough to offset what it said was a 15% increase in expenses due to increased fuel costs.
The company report also said it spent P100 million on the dry-docking of two of its vessels.
Terminal expenses increased by about 6% due to increase in cargo-handling and delivery costs, as well as terminal repairs and maintenance costs.
The Filipino firm said continued uncertainty around high fuel costs was the reason it didn't replace any of its fleet, but did sign a memorandum of agreement to purchase the MV Siefke.
The 5,700 dwt, 520 TEU vessel was Chinese built in 2002 and is currently listed as a chartered vessel by "multi modal logistics operator" T.O. Delta S.p.A. in Italy.
It was reported to have been sold to an undisclosed buyer in December 2011 for $4.8 million.
