LOCAL shipping operator Negros Navigation (Nenaco) posted a 124% increase in net income to P412 million in 2009 from P184 million a year earlier.
The company attributed the improvement to a combination of revenue-enhancing initiatives and cost-cutting measures.
“Last year was not without challenges. Although fuel prices stabilized during the year, the series of typhoons that hit the country coupled with some accidents involving other shipping companies have somehow dampened the overall performance of the shipping industry,” Nenaco chair and chief executive Sulficio Tagud, Jr said.
Last year’s refleeting program also helped cushion the blow, he noted. “The acquisition of two additional cargo vessels is in line with the company’s fleet modernization program, Nenaco’s revenue mix now favors the cargo business.”
Tagud added, “Nenaco is building up its fleet of cargo ships to strengthen its non-cyclical revenue base while pursuing its modernization program for its passenger business.”
The company exited sooner than expected a court-approved rehabilitation program implemented in 2004.
“With the corporate rehabilitation behind us, our objective now is to sustain our profitability and we will be relentless in finding ways on how to improve further our operations,” Tagud said.
Total consolidated revenues climbed to P2.45 billion for 2009 from P1.98 billion in 2008 due largely to greater cargo capacity.
The freight business accounted for 68% of the consolidated revenues, double that of 2008.
Nenaco’s passage business implemented aggressive marketing strategies in view of competition from the roll on-roll off sector and the airlines’ discounted fares.
Earnings before interest, taxes, depreciation, and amortization jumped 33% to P579.3 million in 2009 from P342.6 million in 2008.
Nenaco is owned by KGLI-NM, a joint venture between Negros Holdings & Management Corp and KGL Investments, a Kuwaiti Port
