Nenaco intends to advance its position in the industry through aggressive sales and marketing efforts in Metro Manila and key regional cities, and enhanced focus on core transportation business.
The company will also realign routes to service key growth passenger and cargo markets and continue to divest non-performing assets as part of restructuring efforts.
In a disclosure to the Philippine Stock Exchange, Nenaco said: "Management is committed to ensuring that the company’s ongoing turnaround efforts are further extended and that Nenaco continues to increase market share in each of the 15 ports it serves across the Philippines."
Nenaco added that "throughout 2003 it intends to build on its strength as the Philippines’ second largest passenger and cargo supplier with the support of its creditors, business partners, suppliers, and millions of passenger customers. "
Among those that could be put on the auction block are the company’s trucking and tour operations and selected real estate assets. It had earlier ceased operating its piggery, engineering consultancy, retail concessionaire and fire extinguisher businesses.
MPC chairman and executive director Manuel V. Pangilinan said the divestment is part of a "comprehensive restructuring program" of the shipping firm to enhance its balance sheet. MPC owns 98 percent of Nenaco.
Nenaco reported an unaudited net income of P67 million for the first nine months of 2002, a reversal from the previous year’s loss of P538 million. The turnaround was attributed to a series of operating and financial initiatives implemented by management over the past years.
Revenues for the period January to September last year grew by two percent to P1.83 billion. Higher cargo utilization and the 11 percent increase in volume carried for the period resulted in a 10-percent growth in freight revenues to P765 million from P697 million last year. However, passage revenue dropped by P3 million.
Nenaco reported lower operating expenses of P1.46 billion, down eight percent from P1.58 billion last year.
Nenaco president and general manager Conrado Carballo said the company’s nine-month performance results reinforce the fundamental changes occurring throughout Nenaco and only show that "the firm is becoming a highly efficient, very competitive carrier, with a strong record for reliability, performance and safety, characteristics."
For the past five years, Nenaco has incurred a P5.3-billion cumulative net loss as corporate and operational inefficiencies weighed heavily on the shipping firm.
Nenaco became the first shipping company to be listed in the Philippine Stock Exchange in June 1994. "It dominates the passenger traffic between Negros and Panay islands, of which its fast ferries take up over 70."