However, revenues rose seven percent to P8.2 billion from P7.7 billion a year earlier. Of this amount, passage revenues accounted for P3.7 billion or an increase of five percent from the 2003 figure. The increase in revenues was due to the strong marketing efforts of promoting higher-value passenger accommodations.
Freight revenues likewise went up eight percent in 2004 to P4.3 billion. The increase was mainly due to the focus given to higher paying and higher yielding cargoes.
Other income/charges amounted to P94.6 million as ATSC recognized non-recurring gains of P420 million arising from the sale of three vessels, insurance recovery from the Superferry 14 fire incident and disposal of containers and other fixed assets.
These proceeds, however, were offset by the increase in net interest expense from P246.6 million in 2003 to P347.7 million in 2004.
ATSC has raised its capital to P2.52 billion from P1.77 billion to cover stock dividends and further strengthen operations.
The capital hike is seen as a prelude to the eventual consolidation of the Aboitiz Group’s transport business.
The Aboitiz Group would eventually merge its transport business under listed holding firm Aboitiz Equity Ventures as part of efforts to enhance operational and funding efficiencies.
The integration plan will involve transferring all sea, land and air transport interests of the Aboitiz group in ATSC. Under it, ATSC will own Cebu Ferries Corp., WG&A SuperCommerce Inc., Aboitiz Jebsen, SuperCommerce, and Aboitiz One, a freight and logistics company currently owned by Aboitiz & Co.
Under a single company, ATSC’s shipping business will represent about 60 percent of the group’s total assets. The rest will comprise land and air-based services.
ATSC presently enjoys more than 20 percent of the total market share for the passage business and about 40 percent of the freight.