SHIPYARD operator Keppel Philippines Marine, Inc. (KPMI) expects to have strong sales from the international market for the rest of the year. The international shipping market represented the bulk of KPMI’s revenues during the second quarter of the year. “The outlook for the international shipping market remains good, and the demand for our services will continue to be strong,” KPMI said in its report to the Philippine Stock Exchange.
For the domestic market, KMPI said it continues to remain a prospect. The shipyard operator posted an 11% hike in sales revenues for the second quarter of the year to P353.3 million compared with the same period a year earlier. KPMI attributed the increase to higher shipbuilding revenues for the second quarter. Ship repair activities contributed the bulk of the sales revenues with 89% total revenues while shipbuilding activities contributed 11% of total revenues. Foreign vessels accounted for 46% of the shiprepair revenue.
Operating profit for the quarter of P48 million was up 43% compared with the 2004 figure due to the improved profit margin. Net interest income grew from P0.06 million in 2004 to P2.8 million in 2005 due to higher interest income from short-term placements and lower interest expense for the period. The share of results from associated companies during the quarter showed an increase of P5.6 million due to higher contributions from Subic Shipyard and Consort Land during the period.
Net profit for the quarter, on the other hand, went up 51.6% to P62.3 million compared with the same period in the previous year due to higher sales, bigger equity share in the net profit of associates, higher interest and other income and lower operating costs due to stringent cost control. Consolidated assets were higher by 1% or P29.6 million. This was attributed to the increase in cash by 86% to P451 million, directly traced to higher collections of receivables, and increase in inventories of 7.3% or P8.6 million because of higher work-in-process and stock inventory.
