Philippines' Lorenzo Shipping reports wider net loss for H1 2025

Lorenzo Shipping Corporation has reported a significant widening of its net loss for the first half of 2025, as a sharp drop in freight revenue and lower cargo volumes hit the company's bottom line. The Philippine-based shipping line’s performance reflects a challenging period, which it attributes to a reduction in its fleet capacity leading to fewer voyages.

For the six months ending June 30, the company posted freight revenues of PHP806.8 million (approximately $13.7 million), a steep decline from the PHP1.3 billion recorded in the first half of 2024. This top-line decrease was the primary driver for a net loss that nearly doubled to PHP324.6 million, from a loss of PHP163.8 million in the corresponding period last year.

The company noted that its twenty-foot equivalent unit (TEU) volumes were down by almost 32 per cent compared to the previous year.

The company's outgoings for the first half saw a reduction, though not enough to offset the fall in revenue. Total direct costs, including the cost of services and terminal expenses, decreased to PHP1.02 billion from PHP1.32 billion. General and administrative expenses also fell to PHP75.2 million.

The negative trend was also evident in the second quarter results. For the three months to 30 June, freight revenue fell to PHP381.8 million from PHP659.9 million in the prior-year period. This resulted in the quarterly net loss widening to PHP151.8 million from a loss of PHP77.6 million in the second quarter of 2024.

In its management discussion, the company stated that the loss was, "due mainly to significantly lower revenue as a result of lower number of vessel voyages made." To regain profitability, the company said it is focused on vessel maintenance to enhance reliability, voyage optimisation, and cost rationalisation.