Nenaco doubles net income in Q1

Metro Pacific’s shipping subsidiary Negros Navigation Co. Inc. (Nenaco) more than doubled its net income in the first quarter of this year as a result of the considerable growth in its passenger revenues, the company said in a statement.

From P4.8 million a year ago, Nenaco’s first quarter profit reached P10.5 million, driven primarily by the five-percent increase in passenger revenues to P336.4 million.

However, consolidated revenues for the period stood at P605.5 million, a slight 1.5- percent rise from P595.5 million a year earlier as the other revenue contributor – the freight business – showed flat growth.

Nenaco said despite a reduced freight capacity during the period, it managed to keep its freight revenues stable at P242.1 million.

"Our results underscore the simple fact that Nenaco’s turnaround is real, is sustainable, and is progressing with each quarter," Nenaco president and general manager Conrado Carballo said.

Among the Metro Pacific units, Nenaco has remained as one of only two profitable companies (the other being Landco Pacific) as it started to revert in the black last year from years of consecutive losses.

As a result of management’s ongoing cost containment and debt reduction efforts, the company said its interest expenses have been reduced by 12 percent to P27.2 million while other financing charges were substantially trimmed down to P7.1 million from P17.3 million a year ago.