Asian Terminals Inc’s net income rose to P396.1 million in the first quarter of the year, up 13.1% from P350.1 million in the same period last year, mainly due to better cargo volume at the Manila South Harbor and improving volumes at the Batangas port.
ATI has deployed brand-new heavy-duty cargo handling equipment at the South Harbor as part of its continuing upgrade of the port. Latest equipment additions are five forklifts manufactured by UK-based Linde Materials Handling and distributed locally by Asia Global Technologies.
The upgrade is in line with ATI’s investment commitment with the Philippine Ports Authority.
Revenues hit P1.129 billion in the first three months of the year, 4.4% higher than the P1.081 billion for the same period last year, ATI said in a disclosure to the stock exchange.
“Revenues from South Harbor international operations were higher by 7.8% due to higher volumes and favorable unit rates, while revenues from Port of Batangas increased by 23.7% on account of higher volumes. On the other hand, revenues from South Harbor domestic terminal operations went down by 5.1% due to a decrease in cargo volumes and in the number of passengers,” ATI said in the disclosure.
Costs and expenses in the first quarter totaled P622.4 million, 2.2% higher than the P608.9 million in the first quarter last year.
Labor costs, on the other hand, rose 10.5% to P217.7 million in the first quarter this year from P196.9 million last year due to higher volumes handled and salary increases.
Equipment running costs rose 12.2% to P131.7 million from P117.4 million brought about by higher repairs and maintenance and parts replacement cost for quay cranes and rubber- tired gantry (RTG) cranes.
ATI chairman Kun Wah Wong said robust volumes were handled in ATI’s international container and non-container operations in Manila and Batangas last year, complemented by activities in Laguna and Mindanao.
Last year, ATI posted a net income of P1.678 billion, up 10.4% from P1.52 billion year-on-year, as port revenues hit P4.86 billion, 10.7% more than the previous year.
Revenues from South Harbor international non-containerized cargo and the Port of Batangas were higher by 11.5% or P20.8 million and by 32.4% or P102.6 million due to higher volumes.
General cargo operations likewise yielded robust margins, accounting for a consolidated total of 1.2 million metric tons of non-containerized cargoes.
“Building on this growth momentum, we are continuously pursuing our volume-driven investments within and outside Manila to ensure that these vital economic assets meet the trade needs of the Philippines,” Wong said during the company’s recent stakeholder’s meeting.
“We are earmarking P4.2 billion for capital investment over the next three years to sustain our initiatives,” he added.
This year, ATI is allocating P1.8 billion in capital investments for various projects. The bulk of the investment would still be for its flagship port, South Harbor.
“ATI’s robust bottom line grew in double digits in the past year, resulting from the strong cash flow from our frontline units, our prudent cost management and the skillful execution of our business plans,” he added.