Nenaco says its financial future is sound

Negros Navigation Co., Inc. (Nenaco), the shipping subsidiary of Metro Pacific Corp., denied yesterday published reports in The STAR that the company faces a bleak financial future arising from the claims of port workers worth several millions of pesos over unpaid arrastre services.

In a statement, Nenaco said its financial future is sound, and its fiscal foundation is stronger today than anytime in the company’s history.

Nenaco pointed to the company’s nine-month net profit of P67 million, a significant reversal from losses posted during the same period last year. Nenaco attributed its profit to management’s comprehensive business restructuring, "which has increased efficiencies and productivity throughout the company, and resulted in robust growth in freight revenues, and stabilized passage revenues."

The company said that as a policy it does not comment on individual labor issues, but the company is working closely with its primary labor union, thus reducing incidence of crime, graft and corruption, and other anomalies that have long afflicted businesses in the North Harbor area.

Workers of the North Star Port Development Corp. are demanding that Nenaco pay its outstanding dues amounting to several millions of pesos arising from stevedoring and arrastre services in order that North Star can pay its financial obligations to its restive workers.

Angelina Suansing-Gorospe, senior vice president for finance of North Star, said Nenaco has failed to settle its accounts with their company amounting to at least P10 million, causing the company to negate its financial obligations to its workers and thus causing demoralization among them.

Gorospe mentioned a memorandum from the Philippine Ports Authority (PPA) which states that a shipping line has to pay the arrastre services rendered by the dockworkers seven days after the submission of the bill.

Meanwhile, sources from the shipping industry claimed that Nenaco is now on a "cash and carry" arrangement with its suppliers, meaning suppliers will only deliver on a cash payment basis.

They said that aside from not being able to pay its arrastre, Nenaco has an unpaid drydocking bills amounting to P140 million.

But in a statement, Nenaco said it maintains positive payment arrangements with its suppliers, under mutually satisfactory agreements. It further claims it is equally consistent with regards to its treatment of receivables from customers and business partners.

Nenaco president Conrado Carballo said that with the ongoing transformation of Nenaco into a proficient and profitable company, he is confident that it can sustain its growth and improve its customer services.