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Friday, March 29, 2024

2Go nets lower, blames sharp rise in fuel prices

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2GO Group Inc. said net income dropped just 8 percent in the first quarter despite the hefty increase in fuel prices. 

The country’s largest shipping company reported a net profit of P267.6 million in the first three months of the year from P290.9 million year-on-year. 

Total consolidated revenues increased 17 percent to P4.9 billion from P4.2 billion on year, with the non-shipping cornering 52 percent. 

The group’s non-shipping businesses, largely logistics and supply chain solutions, posted a 27-percent increase in revenues to P1.05 billion in the first quarter from P831.75 million last year. 

The shipping group posted a 23-percent growth to P1.27 billion from P1.04 billion last year mainly due to higher volumes and better vessel utilization for both cargo and passenger vessels. 

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Freight volume increased 8 percent while passenger volume rose 10 percent for the long haul trips. 

The passenger business generated P1.06 billion in revenues, up 14 percent from last year’s P932.93 million. 

Cost and expenses increased by 19 percent to P3.98 billion mainly as a result of  rising fuel prices, which increased by a staggering 52 percent or a P151-million price variance over the same period last year.

“The fuel price hike was the result of increasing demand in the international oil market, as well as the cut in production by oil-producing countries,” 2GO said. 

2GO, however, said all other costs and expenses were generally kept at bay due to improvements in efficiencies and stringent cost management. 

Earlier, SM Investments Corp. acquired a 34.5-percent stake in Negros Navigation Co. for $124.5 million. Nenaco owns 88 percent of 2GO.

The board of 2Go earlier appointed Dennis Uy as its new president and chief executive officer following the decision of Sulficio Tagud, Jr. to retire both from the management and the board.

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