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
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
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.