Lorenzo Shipping gets P165M fresh equity

MANILA, Philippines — Lorenzo Shipping Corp. received P165.53-million equity injection from its parent company to settle obligations and operational expenses.

In a disclosure on Monday, the listed shipping company reported that it had issued 165.53 million common shares from its unissued authorized capital stock for P1 apiece to National Marine Corp. (NMC).

“The shares are issued in consideration of the cash payment made by NMC which will be used to settle existing liabilities and for other general corporate purposes,” Lorenzo Shipping said.

Broken down, P93 million will extinguish the company’s payables for port operations and tug and trucking services.

Some P43 million will go to vessel and container van repairs and container and yard rentals.

The balance will go to capital expenditures and other expenses.

NMC is a domestic holding company owned by A. Magsaysay Inc., the ultimate parent company of Lorenzo Shipping.

READ: Lorenzo Shipping raises P270M to settle debt

2024 losses

The capital infusion came after the company had registered a net loss of P541.78 million last year, a turnaround from net profit of P95.79 million in 2023.

Total freight revenues declined by 29 percent to P2.34 billion last year. With the company ending in the red, its deficit ballooned to P1.13 billion from P589.82 million.

Its top customers include Coca-Cola Beverage Philippines Inc., Nestle Philippines Inc., PepsiCola Products Phils. Inc., Century Pacific Food, Del Monte Philippines, Unilever Philippines and Panasonic Manufacturing Philippines Corp.

The local port industry facilitated cargo volume of 289.52 million metric tons (MT) last year, higher by 6 percent from 272.46 million MT in 2023, according to data from the Philippine Ports Authority.

Bulk of the shipments consisted of imported goods amounting to 108.56 million MT, most of which were received at seaports in Manila and northern Luzon.