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Negros Navigation seeks exit from rehabilitation

Negros Navigation seeks exit from rehabilitation

Manila: Negros Navigation (Nenaco) is seeking exit from court-supervised rehabilitation, saying it has established a strong operating performance and is on the way to modernizing its fleet.
Nenaco is owned by KGLI-NM, a joint venture between Negros Holdings and Management Corp. and KGL Investments, a Kuwaiti Port fund.
The company was placed under rehabilitation in 2004 after failing to service over P2 billion in obligations in the wake of the 1997 Asian financial crisis.
"The termination of the rehabilitation proceedings will afford the company greater operational flexibility," Sulficio O. Tagud Jr., Nenaco chairman and chief executive officer, said
He attributed Nenaco's strong operating performance to "revenue-enhancing initiatives coupled with stringent cost-management measures."
The shipping firm posted a net income of P203.2 million in the first nine months of 2009, up 77 percent from the income during the same period last year.
Total consolidated revenues rose to P1.5 billion against P1.3 billion last year owing largely to increased cargo capacity.
This after the company acquired two additional cargo vessels with a capacity of 300 teu each in the middle of the year.
"The acquisition of the two additional cargo vessels is in line with the company's fleet modernization program. With the two additional freighters, Nenaco's revenue mix now favors the cargo business," Tagud said.
Nenaco is building its fleet of cargo ships to strengthen non-cyclical revenue base while pursuing modernization of its passenger business.
Freight business, which constitutes 67 percent of revenues, rose 30 percent from last year's.
The passage business has implemented aggressive marketing strategies in view of competition from RoRo vessels and the airlines' discounted fares.
Earnings before interest, taxes, depreciation, and amortization jumped 33 percent to P446.7million this year from P337million for the same period last year.  [29/10/09]


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