SHIPYARD operator Keppel Philippines Marine Inc (KPMI) posted a 16% drop in revenues to P495.7 million for the first quarter of the year compared with the same period last year due to the continued suspension of its Cebu yard operations.
Despite this the company reported a net profit of P24.6 million, 15.29% higher than the figure posted in the same quarter of 2009.
The global economic crisis forced the Cebu yard to suspend operations at the start of the second quarter of last year.
“The continuing global economic situation will continue to affect the shipping industry. The impact is being felt in the ship repair and new building business of the company,” KPMI said in a report.
“Vessels stemming for the second quarter is quite strong with major repair works coming from the domestic markets, with only a few vessels from foreign markets,” the company added.
“But stemming for the third and fourth quarters will be subject to the securing of potential jobs from both foreign and domestic customers,” it said.
For the first quarter, ship repair revenues contributed 81.5% to total sales while shipbuilding and fabrication turned in 18.5%.
Operating profit amounted to P123 million, 49.39% higher compared with the same period last year due mainly to lower operating costs and expenses.
Investment and net interest income were higher at P15 million from P1.3 million in the first quarter last year, thanks to higher interest income and gain on foreign exchange as a result of the depreciation of the peso against the US dollar.
The share in the results of associated companies dropped 32.9% from P84.9 million to P56.9 million because of lower net income reported by Subic Shipyard Engineering, Inc. during the quarter.
