MacroAsia eyes 10% profit growth this year to P135M

Banking on an improving economy and the aggressive promotion of Philippine tourism, Lucio Tan’s aviation support unit MacroAsia Corp. is eyeing a 10 percent growth in net income this year to over P135 million from P124.4 million in 2004.

In a financial report filed with securities regulators, MacroAsia said revenues are expected to grow nine percent this year, mainly coming from the airline catering business as well as from ground handling activities on account of the anticipated increases in in-flight meal uplifts from existing and new airline clients and expected additional ground handling airline clients.

Through effective cost control, the company expects to reduce its total cost and expenses by three percent in 2006.

"The company will continue to push for a more effective cost control to further maximize profits without sacrificing the quality of the products and services the company provides," MacroAsia said.

To ensure long-term growth, MacroAsia said it will continue to build on existing core businesses and pursue new viable opportunities.

With the recent favorable decision of the Mines Adjudication Board of the Department of Environment and Natural Resources regarding its mining cases, MacroAsia is now seriously looking into the revival of its nickel mining project in Palawan soon. The company is now in talks with five foreign investor groups from Canada, China and Japan for possible joint exploration of the area.

MacroAsia needs more than $1 million to jumpstart exploration activities on the island of Palawan.

MacroAsia recently obtained a mineral production sharing agreement (MPSA) from the Mines and Geosciences Bureau covering 1,114 hectares of land in Brooke’s Point, Palawan.

The MPSA gives MacroAsia the exclusive right to conduct mining operations within the contracted area. It will be in effect for 25 years and is renewable for a maximum of 25 years under the same terms and conditions as the existing agreement.

MacroAsia inherited the mining claim over the property from Cobertson Holdings Corp. — formerly Infanta Mineral & Industrial Corp. MacroAsia does not own the title to the land but can use it for mining purposes.

Tan took over Cobertson in 1995 to undertake a backdoor listing of MacroAsia. Infanta Mining was the country’s leading nickel mining operator in the 1970s.

Macroasia is also on the look-out for potential global partners for the development of other aviation-related businesses and support services such as the development of an aviation training center and cargo/handling warehousing facilities among others.

Apart from the mining business, MacroAsia operates four subsidiaries and two associated companies, which directly render services to airline customers of the Ninoy Aquino International Airport (NAIA), Mactan-Cebu International Airport (MCIA) and Davao International Airport.