ABOITIZ Transport System Corp. (ATS) reported a net income of P480.8 million in the first nine months of the year, a reversal from last year’s net loss of P353.2 million.
ATS said its income from operations improved considerably to P119.8 million for the period in review from a loss of P274.9 million in 2006.
Earnings before interest and depreciation and amortization (EBITDA) increased 39% from P723.9 million in 2006 to P1 billion in 2007.
The company attributed the improvement to “continuous aggressive cost-saving measures” and “increasing operating efficiencies… realized across the organization.”
Total consolidated revenues hit P8.3 billion, the same as the previous year’s.
Total costs and expenses dropped 5% or P388.3 million to P8.2 billion in September 2007.
Last month, ATS sold SuperFerry 15 generating proceeds of P800.2 million. To date, three vessels have been sold reflecting total gains of P622.7 million. The proceeds of the sale were used to pay down debts of P1.7 billion.
Despite capacity reduction as a result of the vessel sale, ATS said its freight revenues reached P5 billion, the same level as last year, due to higher revenues generated by the company’s international chartering business.
Passage revenues, however, dropped 11% versus the same period in 2006 due to stiff competition.
ATS president Enrique Aboitiz, Jr. earlier said efforts to liquidate debt, remove interest costs, rationalize cost structures, and increase the earning capacity of all assets, are all part of a strategy to build a new ATS in 2007.
The Aboitiz Group celebrates its 100th year in the transport business this year.