ATS Jan-Sept revenues reach P8.3 billionFriday, November 3, 2006
Aboitiz Transport System Corporation (ATS) posted total consolidated revenues of P8.3 billion during the 9 months of the year ending September 30, 2006. This is a 9% decrease over the same period last year despite an 11% increase in freight revenues. The lower revenues were largely attributable to the decline in the company’s international charter business from its subsidiary company, Jebsen Management (BVI) Ltd. due to unfavorable market conditions. ATS registered a net loss of P373.5 million.
In line with the company’s strategy to increase revenue contribution from its freight business, ATS recently chartered a 400-TEU container ship to replace sold tonnage, reduce costs and capture cargo markets that cannot be served by the SuperFerries. I It has also recently firmed up its plan to charter out SuperFerry 19 to an operator in Papua New Guinea.
In spite of rising fuel prices, ATS was able to continue to lower its total costs and expenses as a result of the various cost cutting initiatives put in place as early as two years ago. During the period under review, the company decreased its expenses by 3%, or nearly P300 million, thereby achieving increased operating efficiencies across the organization.
ATS also focused on debt reduction during the same period. As such, interest bearing debt stood at P3.1 billion, P498 million lower from the previous year. Cash and Cash equivalents as of September 30, 2006 stood at P690.7 million. The company’s consolidated assets amounted to P10.6 billion and Stockholders’ Equity stood at P4.1 billion.