Aboitiz Transport System Income Drops

By JAMES A. LOYOLA

Aboitiz Transport System reported an 80 percent drop in net income attributable to equity holders of parent to P82.8 million last year from the P420 million registered in 2007 due to the absence on non-recurring gains in 2008.

In a disclosure to the Philippine Stock Exchange yesterday, the firm said it registered after tax gain on disposal of three vessels of P405.0 million in 2007.

ATS ended the year 2008 with consolidated revenues of P10.3 billion, a 25 percent increase versus P8.2 billion in 2007.

Freight business contributed P5.4 billion in revenues in 2008, a 22 percent increase from P4.4 billion in 2007. The Company’s freight rates per twenty-equivalent unit (TEU) rose 16 percent as freight capacity is being filled up with its own supply chain and value-added business.

ATS is reducing its reliance on spot and market cargo which is more price driven. In 2008, capacity remained at the same level as last year with close to 250,000 TEUs, at 88 percent utilization rate.

Passage business reduced P63 million to register at P2.9 billion revenues (inclusive of auxiliary income) from P2.95 billion in 2007 as the average rate per passenger has gone down by 5 percent as it continues to offer year-round promotional rates to drive up demand and face stiff competition from the airlines.

Similar to the freight business, ropax passage capacity remained at the same level as the previous year with over 3.0 million passengers but with a much higher utilization rate at 70 percent, the highest attained in 4 years.

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.

Aboitiz One Distribution, Inc. new warehouse with 22,000 pallet positions located in Taguig City, has been operational since the beginning of 2009.

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