In a filing with the Securities and Exchange Commission, MacroAsia said the improvement was mainly due to the increase in the share in net earnings of Lufthansa Technik Philippines Inc., an associated company engaged in maintenance, repair and overhaul of aircraft at the Ninoy Aquino International Airport (NAIA).
Total revenues rose seven percent to P191.33 million due to higher revenues from in-flight catering services.
Ground handling and charter flight revenues, on the other hand, fell to P800,000 and P2 million, respectively, due to the lower number of flights serviced.
Despite rising overhead costs, specifically fuel and gasoline, total cost and expenses in relation to revenues fell one percent due mainly to the increase in revenues.
Other income of P50 million, however, increased by 84 percent primarily an account of the P26-million increase in the equity in net earnings of associated companies.
Equity in net income of joint venture and associate represents MacroAsia Corp.’s share in the net income of affiliate/associated companies.
MacroAsia earlier entered into a joint venture with Singapore’s SembCorp Logistics Ltd. (SembLog), Southeast Asia’s largest logistics company, to allow the latter to provide logistics services to electronics manufacturers in the Philippines.
The move is in line with SembLog’s efforts to position itself for further growth and expansion in the region.
Under the agreement, SembLog will invest $135,150 for a 51-percent stake in a joint venture caled SembLog-MacroAsia Philippines (SMP) while MacroAsia will hold the remaining 49-percent stake.
As a third-party logistics player, SMP will manage and execute outsourced logistics functions of client companies.
SMP will combine SembLog’s supply chain expertise with MacroAsia’s experience in aviation logistics to initially focus on the export-oriented market which in 2003 accounted for about 66 percent of all exports from the Philippines.
Listed in the Philippine Stock Exchange, Macroasia is the sole operator and developer of a special economic zone within the NAIA.
To further improve its profitability, MacroAsia is pursuing development projects not only within the aviation sector but also in non-aviation concentrated activities like food services, logistics and mining.