Chelsea Logistics and Infrastructure Holdings Corp. saw its bottom line squeezed in the first half of the year as debt servicing costs and foreign exchange volatility weighed on earnings, even as revenues grew by double digits and operating expenses declined.

The company reported on Monday that consolidated revenues rose 12 percent to P5.220 billion during the period from P4.665 billion a year earlier, driven by higher volumes and rates across its key operating segments.

The stronger top line, however, translated into only a modest improvement at the operating level. 

Operating profit increased just 3 percent to P670 million as gross margin pressures offset much of the benefit from revenue growth and lower overhead costs.

“Strict cost discipline enabled the Chelsea Group to enhance operational efficiency despite headwinds from high fuel costs, debt servicing, and foreign exchange volatility,” Chelsea Logistics CFO Darlene A. Binay said.

The company did not disclose its first-half net income in the statement, but reported earnings per share of just P0.003, indicating that much of its operating earnings were eroded before reaching the bottom line.

The tugboat business led revenue growth with a 32-percent increase, supported by improved fleet readiness and new charter contracts. 

Freight revenue climbed 22 percent on enhanced shore-based services, while the logistics segment grew 14 percent following service expansions and continued investments in digitalization.

Chelsea Logistics President and CEO Chryss Alfonsus V. Damuy attributed the first-half performance to operational agility and strategic foresight.

“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, ” Damuy said.

Chelsea Logistics managed to cut operating expenses by 7 percent to P487 million, bringing overhead costs down to 9 percent of revenues from 11 percent a year earlier.

Despite those savings, the gap between the company's 12-percent revenue growth and 3-percent increase in operating profit highlighted continuing pressure on margins. 

Debt servicing and foreign exchange volatility added further pressure below the operating line.

EBITDA stood at P1.597 billion, representing a 31-percent margin.

Total assets increased 2 percent to P32.833 billion as of end-June, supported by improved operational liquidity and investments to expand fleet capacity. 

The company deployed two new RoPax vessels during the period, MV Starlite Resilience and MV Starlite Gratitude.

Total equity stood at P4.176 billion, translating to a book value per share of P1.95.