School of Business and Management
Business Administration Department
A Research Paper on Recommended Investment Portfolio of
LORENZO SHIPPING CORPORATION
I. Company Background
Lorenzo Shipping Corporation Founded in 1972, Lorenzo Shipping Corporation is a containerized cargo shipping company. It currently owns and operates a fleet of seven vessels, which are deployed to the major ports in the Philippines. It also owns land-based equipment, including forklifts and trucks. In 1990, Neptune Orient Lines became an investor in the company. In 1996, Lorenzo Shipping was listed in the Philippine Stock Exchange and rendered its Initial Public Offering. After three decades of service, the company has evolved and moved its focus from the break bulk cargo carrier business to become a fully containerized cargo shipping entity. Its fleet of container vans carries and accepts various types of cargoes. It also accepts smaller volume cargoes and provides inter-island transport services for loose cargo, which have irregular measurements such as posts, steel bars, poles, and coils. It also ships rolling cargo such as tractors, trucks and other vehicles at its different ports of call. In addition, it also has a fleet of container vans, which have been specifically designed for transporting livestock cargo. All of the company’s vessels are equipped with reefer outlets, which allow the company to provide shipment of reefer vans to the company’s various ports. The company has successfully established a name in the industry. It has finally become a key player in the industry of domestic containerized cargo shipping. Lorenzo Shipping markets its services through a network of seven branches and three agencies nationwide. Their branches are located in Manila, Cagayan de Oro, Cebu, Cotabato, Davao, General Santos, and Iloilo. The agencies are in Bacolod, Dumaguete, and Zamboanga. Since the company operates on a 24/7 basis, bookings and cargoes are accepted in all branches and agencies anytime. You may also inquire on the status of cargoes to be informed of the exact location of the cargo. Lorenzo Shipping is a subsidiary of National Marine Corporation. It is based in Ermita, Manila; with their office located at United Nations Avenue corner Taft Avenue. II. Board of Directors
In the Annual Stockholders' Meeting of the Lorenzo Shipping Corporation held on June 21, 2012, the shareholders elected the following as members of the Board of Directors of the company to serve as such for the ensuing year and until the election and qualification of their successors: 1. Doris Magsaysay Ho
2. Antony Louis Marden
3. Roberto A. Umali
4. Julio O. Sy, Sr.
5. Michael L. Escaler
1. Deogracias N. Vistan
2. Edgardo A. Bautista
In the Organizational Meeting of the Board of Directors immediately succeeding the shareholders' meeting, the following were elected officers of the company to serve as such for the ensuing year and until the election and qualification of their successors:
Chairperson: Doris Magsaysay Ho
Vice-Chairman: Antony Louis Marden
President: Roberto A. Umali
Chief Financial Officer/Treasurer: Edna F. Mendiola
VP Logistics and Corporate Planning and Compliance Officer: Dino C. Diaz VP for Operations: Felicisimo H. Saldaña, Jr.
VP for Marketing: Edralin G. Manapsal
Corporate Secretary and Corporate Information Officer: Atty. Arsenio C. Cabrera, Jr. Assistant Corporate Secretary: Atty. Anna Carmina S. Herrera III.
STATEMENTS OF FINANCIAL POSITION
| 2011| 2010| 2009|
Current Assets| | | |
Cash and cash equivalents (Note 5)| P 128, 890, 951| P= 97,414,860 | P 126,821,866| Trade and other receivables (Note 6)| 596,221,252| 626,671,339| 504,990,065| Inventories (Note 7)| 42,506,345| 43,564,158| 36,162,202| Prepayments and other current assets (Note 8)| 116,803,371...