MacroAsia gets P450-M loan facility

MacroAsia Corp., the aviation-related services unit of the Lucio Tan Group of Companies, has obtained a P450-million term loan facility with First Metro Investment Corp.

“This loan facility is a stand-by credit that MacroAsia may utilize for its expansion projects in aviation services in NAIA and Clark Airport. Also, the facility may be used for further funding of exploration and development works in its nickel mining project in Palawan,” MacroAsia said in a disclosure to the Philippine Stock Exchange.

Due to the favorable decision of the Supreme Court regarding its mining claims, MacroAsia is reviving its nickel mining project in Palawan and expects to start commercial shipment of nickel by the last quarter of 2008.

The company also plans to expand its business in the Diosdado Macapagal International Airport in Clark.

MacroAsia said it will continue to build on its existing core businesses and pursue new viable opportunities as it steps up marketing efforts and undertakes cost-cutting programs this year.

“MacroAsia shall always look for potential global partners for the development of other aviation-related businesses and support services, such as the development of an aviation fuel tank farm and cargo handling/warehousing facilities among others,” the Tan-owned company said in a financial report filed with securities regulators.

MacroAsia reported a net income of P266 million in 2007, practically same level as the previous year, owing to foreign exchange losses. Service revenues rose 7.46 percent to P1.04 billion, from P967.83 million a year earlier. Of the total, P680.51 million came from in-flight and other catering revenues.

Revenues from ground handling services jumped 91 percent to P159.04 million due to more airline clients serviced on behalf of sister firm Philippine Airlines.

Catering revenues fell 0.8 percent due to significant foreign exchange losses despite an increase in meal volumes while charter flight revenues went up 40 percent due mainly to the higher number of charter flights serviced in line with the 2007 national elections in May 2007.

MacroAsia’s share in the net income of its associates grew 15.4 percent year-on-year because of the increase in the revenues of Lufthansa Tecknik Philippines particularly from aircraft overhaul services to airline customers.

The company incurred a huge net foreign exchange loss of P60 million as compared to a net foreign exchange loss of P25 million in 2006 as a result of lower peso exchange rate against the dollar.

As of end-December last year, MacroAsia had total consolidated assets of P2.34 billion, slightly lower than the previous level of P2.37 billion.

With the current growth trend in the country’s economy together with the aggressive promotion of Philippine tourism, MacroAsia is eyeing a 34-percent growth in total revenues this year, which would come mainly from the ground handling sector and initial operation of its nickel mining subsidiary.

“The group anticipates to secure more additional ground handling airline clients in 2008. The company will continue to push for a more effective cost control system to further maximize profits without sacrificing the quality of the products and services the company provides. A lower direct cost ratio of 64 percent (in relation to total operating revenues) is projected to be achieved in 2008),” MacroAsia said.