Philippine port operator Asian Terminals Inc. (ATI) reported a 41.2% decline in net income for the first quarter of 2016 due to low storage revenue and a slow international container market.
In a disclosure to the Philippine Stock Exchange, ATI said net income for the first three months of the year reached P382.1 million, a decline from P650 million posted in the same period last year.
Excluding foreign exchange variations attributable to port concession rights payable, ATI said net income would have been P426 million.
Revenues were likewise down 16.7% to P1.966 billion from P2.359 billion. ATI said the decline was “due to lower storage revenues compared to unseasonally high storage revenues in first quarter of 2015, and a slow international market in South Harbor, Port of Manila during the first two months of this year,”
Costs and expenses in the first quarter were up 1.6% to P951.1 million from P936.4 million in the same period last year, mainly on account of continued investments in port facilities.
In 2015, ATI’s net income declined 7% to P1.767 billion from P1.901 billion in 2014 as a soft market caused revenue to fall at Manila South Harbor.
Moving forward, ATI said it will “continuously optimize its ports in Manila and Batangas for containerized cargo, non-containerized cargo and passenger handling, keeping these vital gateway port facilities competitive (in catering) to customer needs and responsive to market demands.”
The company’s programmed capital investment for 2016 is P3.8 billion, in line with its investment commitment with the Philippine Ports Authority.
“The robust Batangas Port takes center stage this year as ATI positions it for future growth ahead for both the domestic passenger and roll-on/roll- off segments as well as the international container cargo business,” ATI noted.
It added it is keeping its eyes open for more business growth drivers, including exploring new port operations locally and overseas.
ATI operates Manila South Harbor, Port of Batangas (Phase 1), Batangas Container Terminal, Batangas Supply Base, and Inland Clearance Depot, as well as Makar Wharf in General Santos through South Cotabato Integrated Port Services Inc.
