WG&A income up 6% to P575-M

Publicly-listed William, Gothong & Aboitiz, Inc. (WG&A), the largest shipping company in the country, posted consolidated revenues of P3.8 billion during the first six months of 2002.

This is an increase of P318.6 million or nine percent above the P3.5 billion registered during the same period last year.

Susan V. Valdez, WG&A’s chief finance officer, reported during the company’s annual stockholders’ meeting in Cebu City last Friday (July 12) that freight revenues went up by two percent while passage revenues rose by 15 percent.

"It’s been a superb first-half performance," Ms. Valdez said, "with better people and better systems in place and a clear strategy of where we are going."

Income from operations totaled P645.6 million, an increase of P60.4 million or 10 percent last year while recurring EBITDA (earnings before income tax, depreciation, and amortization) amounted to P1.1 billion or 12 percent higher than last year’s P986.4 million.

Net income before tax and before non-recurring gain and losses amounted to P574.8 million or six percent higher than last year’s P544.8 million.

Earlier, WG&A reported full-year consolidated net income of P571.6 million for 2001, a remarkable improvement of P804 million or 346 percent from a net loss of P232.5 million in 2000.

Despite the reduction in the number of ships in operation, a drop in passenger volume, and relatively flat cargo volume last year, WG&A still managed to post a 21 percent increase in revenues from P5.6 billion in 2000 to P6.8 billion in 2001.

WG&A’s freight market share remained at 42 percent while the total market shrank by four percent from 2000 to 2001. In the passage market, WG&A held a 54 percent share in 2001.

The company’s improved performance resulted in a 5.8 percent increase in stockholders’ equity, from P4.77 billion to P5.05 billion.

Cash flow from operations also increased by P296.6 million or 28 percent from the previous year.

WG&A realized that full benefits of revenue growth by focusing on higher-paying, higher-yield cargoes and on higher-value passenger accommodations.

Enrique Aboitiz Jr., WG&A president and chief executive officer, said that "over the past three years, we have strengthened out team and our systems. As a result, we were able to give our customers much better value. Our customers, in turn, have rewarded us with better margins.

He added that "our vision is for our Superferries to create an enjoyable and satisfying experience in the movement of more passengers and more cargoes, to more destinations, more often and on time."

"To prepare for the future and to begin our modernization, we have concluded the purchase of two beautiful new Superferries which will be delivered in September and fully operational by December 2002," Aboitiz said.