ATSC's 2008 net profit slips by 80.2 percent on higher oil prices

MANILA, Philippines - Higher revenues failed to prop up publicly listed Aboitiz Transport System Corp.'s (ATSC) bottomline as it posted a double-digit decline in net income attributable to equity holders last year due to escalating fuel prices. In a disclosure, ATSC said net income attributable to equity holders plunged by 80.29 percent to P82.8 million from P420.0 million in 2007 as total costs and expenses rose by 23%. Consolidated revenues went up by a quarter to P10.3 billion from P8.2 billion with the freight business generating almost half of the revenues at P5.4 billion. As freight rates per twenty-equivalent unit (TEU) improved by 16 percent on on lower spot and market cargo. Freight business went up by 22 percent from P4.4 billion in 2007. "For the year 2008, much of the company’s efforts were geared towards developing its value-added business where it believes much of its future will lie," the listed firm said. Passage business dipped by 1.69 percent to P2.9 billion from P2.95 billion the previous year. "The average rate per passenger has gone down by five percent as it continues to offer year-round promotional rates to drive up demand and face stiff competition from the airlines," it said. "Similar to the freight business, ropax (roro-passenger vessel) passage capacity remained at the same level as the previous year with over three million passengers but with a much higher utilization rate at 70 percent, the highest attained in four years," it added. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) was flat at P947.1 million. Consolidated assets of the company grew by 9.3 percent to P9.4 billion from P8.6 billion in 2007. "Assets are maximized, costs are lowered, and its value-added businesses are gaining market acceptance. ATS believes its operating environment continues to be a challenging one as it faces uncertainties such as fuel prices and the purchasing power of its customers. Efforts are continuously placed on operational excellence at all levels of the organization with the aim of providing solutions to its customers at the lowest cost," ATSC said. -GMANews.TV