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Monday, November 07, 2005
High fuel costs raise Aboitiz firm’s net loss
THE increasing price of fuel, among others, has resulted in a net loss of P92.7 million for the first nine months of the shipping company of Aboitiz Equity Ventures (AEV).
Aboitiz Transport System Corp. (ATSC), however, posted total revenues of P6.3 billion from January to September this year, according to ATSC’s disclosure to the Philippine Stock Exchange.
Depreciation
The company’s total costs and expenses reached P6.1 billion, up by seven percent from the same period last year.
The increase is largely due to the 19 percent rise in depreciation of ships and improvements amounting to P699 million for the nine months that ended Sept. 30.
ATSC’s net loss during the period was largely due to the increase in overall costs and expenses, including finance cost.
The firm’s losses was also caused by a 13-percent increase in terminal expenses and a six- percent rise in operating costs as fuel prices escalate.
“The company is currently working on several initiatives to continuously bring costs down,” ATSC said.
Reduce speed
AEV president and chief executive officer Jon Ramon Aboitiz earlier said ATSC has reduced the speed of its ships to minimize fuel consumption and offset the increasing price of fuel.
“An hour or two hours of delay would be better than a (high) increase in the shipping rate,” he said.
ATSC’s consolidated assets at the end of the third quarter amounted to P9.2 billion, while total liabilities reached P5.1 billion.
The shipping company’s total bank debt stood at approximately P2.6 billion, with no additional borrowings made during the period.
The firm’s stockholders’ equity stood at P4.1 billion.
Cash generated from operations amounted to P1.1 billion.
ATSC internally funded its capital expenditures of P664 million and reduced debt by P362 million for the same period.
Cash and cash equivalents at the end of September this year were at P205.7 million. (JBN)
(November 7, 2005 issue)
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