ATS gains P243M from sale of vessel

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AFTER SuperFerry 16, Aboitiz Transport System (ATS) has sold another vessel from its SuperFerry fleet, a move seen to convert the firm into a freight service provider and cut its debt by more than half.

ATS said it sold and delivered SuperFerry 15 to Heung-A Shipping Co., Ltd. for P789 million and will gain approximately P243 million from the sale.

ATS sold two vessels early this year, liquidated P1.7 billion in debt, and reduced interest costs by 59% from last year.

The company has been converting unused passage capacity to roll on-roll off capacity since last year. Three SuperFerries have been converted, generating an additional 192 TEUs to its freight capacity.

ATS also recently partnered with AP Moller Maersk Group to grow its freight business. The joint venture company called MCC Transport Philippines offers regular weekly sailings, servicing the ports of Manila, Cebu and Cagayan de Oro.

In a recent disclosure, ATS reported P366.6 million in net income after tax for the first half of 2007, a 101% increase versus the 2006 figure.

The company is projecting a 7% increase in freight business this year that will be propelled by cargoes coming from the south specifically Dumaguete, Bacolod, Cagayan de Oro, Davao, General Santos and Zamboanga.