Negros Navigation revenues up 25%
Negros Navigation Co. (Nenaco) which has just emerged from corporate rehabilitation early this year, posted a 25% increase in revenues for the first quarter 2010 to P623 million from P500 million in 2009. Passage volume jumped 45% while freight volume expanded by 39%. The increase in revenues can be attributed largely to the strong marketing initiatives in both passage and freight businesses. Early this year, Nenaco re-packaged its freight business with the successful launching of NNFreight. The passage business continued on with its innovative marketing strategies resulting in securing a lion share of the market in areas where it served.
“Actually, we operated at a very limited capacity during the period as four of our vessels underwent maintenance and drydocking during the first quarter,” said Sulficio O. Tagud, Jr., Chairman & CEO of Negros Navigation. “Now that our entire fleet is fully operational, coupled with the growing demand, we are very optimistic about the remaining months of the year,” Tagud added.
Nenaco’s net income during the period reached P47.3M, down 38% against last year due largely to the sharp spike in fuel prices this year. “Fuel prices rose to almost 50% this year compared to last year causing our operating expenses to swell 39%,” Tagud said. “With the fuel price hike, we pushed our revenues up to offset the additional fuel cost burden,” Tagud added.
With the launching of NN Freight, Nenaco has redefined the landscape of shipping experience. From the traditional pier-to-pier transport, Nenaco now offers the more revolutionary house-to-house service. It is able to pick up cargo from a factory anywhere in the country and deliver the same direct to its final delivery point in a seamless logistical operation.
“We inconvenience ourselves to make it convenient for our customers. Which is why our men at the NN Freight operate like doctors – on call 24/7. This is a big difference for our shippers particularly the manufacturers,” Tagud quipped.
Nenaco is owned by KGLI-NM, which is a joint venture company between Negros Holdings Management Corporation and KGL Investments of Kuwait. Nenaco has emerged from corporate rehabilitation, four years ahead of schedule, after posting profits for three consecutive years.
