Strong cargo volume lifts ATI Q1 income to Php1.1-B

May 10, 2019

The strong influx of international containerized cargoes handled by Manila South Harbor and the newly expanded Batangas Container Terminal from January to March, alongside port efficiency measures implemented with industry stakeholders, boosted the first quarter results of listed Asian Terminals Inc. (ATI).

In a disclosure to the local bourse, ATI said revenues for the first three months rose by 37 percent to Php3.6 billion from Php2.6 billion, previously. Along with higher revenues and improved margins from its ports business, ATI was able to benefit from the favorable forex rate and higher interest income which drove ATI’s net income to Php1.1 billion, representing an increase of 91 percent compared to Php581.9 million in the first quarter of 2018.

Consistent with the growth of the economy, Manila South Harbor and Batangas Container Terminal handled a consolidated international container volume of over 390,000 teus (twenty-foot equivalent units) during the first quarter, as both kept economic goods flowing through Metro Manila and Southern Luzon, respectively. This represented an increase of nearly 25 percent compared to the same period last year.

ATI also attributed the higher volumes handled to port efficiency measures it implemented in partnership with stakeholders, the aggressive expansion of Batangas Port and the opening of more container storage spaces within and outside the port zones.

In February, ATI and major international shipping lines agreed to share vessels and optimize terminal resources to immediately evacuate empty containers from Manila and surrounding areas through Manila South Harbor. This has since fast-tracked the recirculation of over 10,000 teus of empty containers to other Asian destinations on a weekly basis.

The role of ATI’s Sta. Mesa container yard has also been expanded to store Customs-cleared overstaying laden boxes,following directives from the Philippine Ports Authority, which has contributed to achieving greater operational efficiency at Manila South Harbor. ATI’s new five-hectare empty container depot in Laguna likewise started operations recently.

Meanwhile, Batangas Container Terminal has leveled up its role as Southern Luzon’s trade facilitator following the recent expansion of its berth and yard facilities. It can now handle over 500,000 teus annually, from an initial handling capacity of over 350,000 teus.

The robust growth of Batangas Port which handled nearly 250,000 teus last year has continuously helped reduce road traffic in Metro Manila, in line with government policies.

ATI’s strong first quarter output followed its solid operational and financial results in 2018, where full year revenues went up by 15.8 percent to Php12.3 billion from Php10.6 billion in 2017 and net income reached Php2.9 billion, up 15.8%from Php2.5 billion, previously.