Negros Navigation posts 25% increase in revenues
Negros Navigation Co. posted a 25 percent increase in revenues in the first six months of 2010 to P1.37 billion from P1.10 billion in 2009, a press release from the company said.
Passage volume climbed 30 percent while freight volume swelled 40 percent.
The increase in revenues can be attributed largely to the strong marketing initiatives in both passage and freight businesses.
NENACO, owing to its strong operating performance for the past three years, emerged from its Court rehabilitation proceedings four years ahead of its ten-year rehabilitation plan.
“Actually, our performance was dampened by the limited capacity that we have during the period as three of our freighters and one passenger/cargo ferry underwent maintenance and drydocking at different intervals during the first quarter,” Sulficio Tagud Jr., chairman and CEO of Negros Navigation, said.
“Despite that handicap, we kept our focus on our core businesses and at the same time held down our costs, other than fuel, to very close to last year’s levels” Tagud said.
Early this year, NENACO re-packaged its freight business with the successful launching of its NN Freight brand. The passage business continued on with its innovative marketing strategies resulting in securing a lion’s share of the market in areas where the company served.
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.
NENACO’s net income during the period reached P175.2M, down 14 percent against the same period last year due largely to the sharp spike in fuel prices this year.
“Fuel prices increased by 42 percent this year compared to last year causing our operating expenses to swell 37 percent, fuel being the biggest component of operating costs” Tagud said. “With the fuel price hike, we pushed our revenues up to offset the additional fuel cost burden,” Tagud said.
NENACO is owned by KGLI-NM, which is a joint venture company between Negros Holdings Management Corp. and KGL Investments of Kuwait.*
