LISTED transport and logistics firm 2GO Group Inc. reported an 8 percent drop in first quarter net income to P267.6 million from P290.9 million in the same quarter last year as higher fuel prices jacked up expenses.
“The Group was greatly affected by the rise in fuel prices in 2017 compared to 2016,” the company said in a disclosure to the Philippine Stock Exchange on Tuesday.
“All other costs and expenses were generally kept at bay,” it said.
Total consolidated revenues rose 17 percent to P4.9 billion from the previous year’s P728 million due to an increase in service offerings and higher volumes of both cargo and passenger vessels.
Operating income increased 8 percent to P516.4 million from P478.3 million aided by its e-commerce business.
Expenses rose nearly 18.5 percent, from P3.8 billion in the first quarter of 2016 to P4.5 billion in the first quarter of this year mainly as a result of rising fuel prices due to increased demand in the international oil market and production cuts by oil-producing countries, the company said.