ATI profit surges to more than P3 billion in nine months

MANILA, Philippines —  Port operator Asian Terminals Inc. (ATI)’s net income reached more than P3 billion   during the nine-month period ending September, driven by higher revenues from its businesses in Manila and Batangas.

In its latest financial report, ATI said that it posted a 77-percent spike in its profit to P3.21 billion in the nine months to September  from P1.81 billion a year ago.

Broken down, revenue jumped by 17 percent to P11.43 billion, outpacing the 11 percent surge in expenses to P4.88 billion.

ATI attributed the revenue growth to the expansion of the containerized cargo segment in Manila South Harbor and Batangas Container Terminal (BCT). The company said container volumes in Manila and Batangas went up by 13 percent and 56 percent, respectively.

Further, ATI observed an uptick in passenger revenues in Batangas as Filipinos started to travel again now that pandemic restrictions are lifted. As a result, ATI said that BCT experienced a rise in the volume of roll-on, roll-off vessels that pass through it.

As ATI’s revenue went up, the government also saw its share in the earnings go up by 10 percent to P1.95 billion between January and September from P1.78 billion during the same period last year.

On the other hand, ATI attributed the cost hike to depreciation and amortization, labor costs and taxes and licenses, all of which increased as a consequence of resurgent activity in the ports.

For the year, ATI plans to invest a minimum of P5.2 billion for capital expenditures, mainly for the delivery of port upgrades in Manila and Batangas.

In particular, ATI will spend the bulk of the amount to modernize the equipment and facilities in BCT. It will also raise its information technology systems as part of efforts to digitalize some of its services.

ATI operates some of the most active terminals in Luzon, namely, the Manila South Harbor and the Port of Batangas. Likewise, it runs the Inland Clearance Depot and Empty Container Depot in Laguna; Batangas Supply Base; Tanza Barge Terminal; and the South Cotabato Integrated Port Services Inc.

Nationally, the Philippine Ports Authority projects cargo volume to expand by eight percent and passenger traffic to balloon by 20 percent this year on the recovery of trade and travel activities worldwide.

The agency is poised to meet these numbers with cargo volume and passenger traffic up by four percent and 21 percent, respectively, as of the third quarter.