DOMESTIC shipping firm Negros Navigation Co. (Nenaco) posted a net income of P203.2 million for the first nine months of 2009, up 77% against the same period last year.
Nenaco attributed the strong performance to revenue-enhancing initiatives coupled with stringent cost-management measures implemented during the year.
Total consolidated revenues swelled to P1.5 billion from P1.3 billion, owing largely to increased cargo capacity.
The freight business, which constituted 67% of revenues, rose 30% versus last year.
Two additional cargo vessels with a capacity of 300 TEUs each were acquired middle of the year, in line with the company’s fleet modernization program. As a result, the shipping line’s revenue mix now favors the cargo business.
“Nenaco is building up its fleet of cargo ships to strengthen its non-cyclical revenue base whilst pursuing its modernization program for its passenger business,” Nenaco chair Sulficio Tagud, Jr said.
The passage business has also implemented aggressive marketing strategies in view of competition from the roll on-roll off segment and the airlines’ discounted fares. Nenaco said it has since transformed into a low-cost sea passenger carrier resulting in higher load factors.
Earnings before interest, taxes, depreciation, and amortization jumped 33% to P446.7 million this year from P337million for the same period last year.
Owing to its strong performance in the past two years, Nenaco has filed a motion to terminate rehabilitation proceedings on account of the successful implementation of its Court-Approved Rehabilitation Plan earlier this year.
“The termination of the rehabilitation proceedings will afford the company with greater operational flexibility”, Tagud pointed out.
Adversely affected by the 1997 Asian financial crisis, Nenaco went into corporate rehabilitation in 2004 when it failed to service its obligations amounting to over P2 billion.
Nenaco is owned by KGLI-NM, a joint venture company between Negros Holdings & Management Corp and KGL Investments of Kuwait.
