|
ABOITIZ Transport System Corp. on Tuesday reported that is profit
more than doubled last year on the back of reduced capacity and the
sale of vessels.
In a statement, the transport unit of the
Aboitiz group said net income jumped 113 percent to P420 million
last year.
The company’s consolidated revenues amounted
to P11.1 billion, an improvement versus P10.6 billion in 2006.
“ATS continued to right-size its fleet and
tackled challenges such as rising fuel costs in 2007. The company
operated at reduced capacity in 2007, as a result of the sale of
some vessels as well as from the majority of its fleet being
dry-docked during the year,” the company said.
In 2008, ATS expects its existing fleet of 17
vessels to be in full operation with minimal dry-docking.
Despite the overall reduction in capacity, the
company’s freight revenues reached P7 billion, six percent higher
than in 2006.
“This is partly attributable to higher
revenues generated by the international chartering business,” it
said.
In addition, the company has been converting
unused passage capacity to make room for increasing freight demand,
especially for its roll on-roll off (Roro) services. It recently
entered into a joint venture with the A.P. Moller-Maersk Group to
form MCC Transport Philippines Inc. This joint venture company
operates a 600 twenty-foot equivalent units container ship, offering
regular weekly sailing, servicing the ports of Manila, Cebu and
Cagayan de Oro.
The reduction in passage capacity contributed to
an 11-percent drop in passage revenues. ATS has taken initiatives to
drive up passage demand by offering year-round promotional rates.
The company said its focus is to further increase its freight
business and enhance the earning capacity of its assets.
Last year, three vessels were sold reflecting
total gains of P622.7 million. The proceeds were used to pay down
P1.8 billion of debt. Consequently, net finance costs decreased 79
percent, from P337.8 million to P69.9 million.
-- Darwin G. Amojelar
|
