Asian Terminals sees Q3 profit fall 10pc, but Jan-Sept earnings rise to US$55m
MANILA, Philippines-based Asian Terminals Inc (ATI) saw its third quarter net profit after tax decline by 10
MANILA, Philippines-based Asian Terminals Inc (ATI) saw its third quarter net profit after tax decline by 10.28 per cent year on year to PHP707.44 million (US$13.65 million) on revenues of PHP3.13 billion, after revenues generated from operations dipped by 0.92 per cent.
The lower third quarter results were triggered by higher costs and expenses, which increased from PHP1.24 billion in the third quarter of 2018 to PHP1.47 billion over the same period this year, reported New York's FreightWaves.
However, revenue over the first nine months of this year rose by 14.8 per cent year on year to PHP10.17 billion.
The company attributed the nine-month revenue growth to an increase in ocean shipping container volumes at its South Harbour International and its Batangas Container Terminals, where volumes rose by 12.3 per cent and 38.75 per cent respectively, the company said in a statement.
Net profit after tax for the January to September period amounted to PHP2.85 billion, a 30.21 per cent increase on the same period last year. As a result, the company is, in the year to date, PHP661.51 million ahead in profit compared with the same period last year.
Asian Terminals' generated a gross profit of PHP8.36 billion, up 15.95 per cent over the corresponding period of 2018 despite costs and expenses rising by 16.45 per cent to PHP44.10 billion.
The hikes in expenses were often related to higher throughput and profitability. Higher container volumes led to a greater demand on the workforce and so the company paid higher overtime costs and sourced additional headcount. There were also salary rate increases for the workforce too.
At the same time, management fees rose due to the uptick in net income. Another significant cost hike was linked to equipment running costs in relation to greater consumption and the higher prices of spare parts, tyres, electricity and fuel. Trucking costs also increased by 144.6 per cent to PHP83.8 million.