MAGSAYSAY-CONTROLLED Lorenzo Shipping Corp.’s net income grew last year, but mostly as a result of reducing its cost of services rather than increasing its revenue freight base.

The company said in a report that it had attained a net income after tax of P52.23 million for the whole of last year, up by 31 percent from the previous year’s P40 million.

“Freight revenue during the year was P1.33 billion, lower by 0.6 percent over last year’s P1.34 billion due to lesser number of vessel voyages attributable to longer drydocking period of some vessels,” the company said in its annual report.

As a result of its fewer voyages, it had cut its cost of services to P871.26 million from the previous P865 million, but terminal expenses rose slightly to P240.3 million from the previous year’s P233.62 million.

It reported, meanwhile, that the trend of an increased volume of door-to-door shipments and less container load business or LCL is gaining foothold in the market, serving mostly those small and medium-sized businesses.

The company’s net property and equipment assets increased by 30 percent to P1.61 billion from P1.24 billion in 2006 to due to additional vessels acquired in 2007 worth $8.3 million; additional drydocking costs of about P199 million; P17.3 million for the costs of new and second- hand container vans; and additional vessel tools and equipment of about P17 million.

During the year, Lorenzo’s bank borrowings increased by P400 million net of P219.55M payments. This included the P450-million, seven-year term loan obtained from Banco de Oro to finance the acquisition of an 11-year-old vessel, MV Lorcon Manila.

Last February, the company sold its ageing vessel MV Lorcon Mindanao to Coral Bay Maritime Inc. Nevis for about $2 million.

Lorenzo Shipping, 52.6-percent owned by the National Marine Corp., a company owned by the Magsaysay Group, operates a fleet of seven vessels, with a capacity between 200 TEUs and 400 TEUs with speed of 11 knots to 15 knots, and deployed to the key ports in Visayas and Mindanao.
Its network is composed of branches in Cebu, Davao, General Santos, Cotabato, Iloilo, Cagayan and agencies in Zamboanga, Dumaguete, and Bacolod.

Its other vessels are MV Lorcon Cagayan de Oro, MV Lorcon Davao, MV Lorcon Visayas, MV Lorcon Cebu, and MV Lorcon Luzon.

Lorenzo Shipping was founded and incorporated in 1972.Its business focus has evolved from that of being a break bulk cargo carrier to a fully- containerized cargo shipping company.

OSG expands RP operations

AMERICAN shipping firm OSG Ships management Manila Inc. said it has expanded its Philippine operations by having its own building to have the capacity for training more seafarers to be dispatched to its new vessels. 

MAGSAYSAY-CONTROLLED Lorenzo Shipping Corp.’s net income grew last year, but mostly as a result of reducing its cost of services rather than increasing its revenue freight base.

MITSUI Engineering & Shipbuilding Co., Japan’s second-largest shipbuilder by sales, forecast profit will rise 64 percent in three years, aided by stronger demand.

DOOSAN Engine Co., the world’s second-largest maker of marine engines, forecast sales to increase 52 percent this year to a record as shipbuilders work through almost four years of backlog orders for new vessels.