results of operations - Aboitiz

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RESULTS OF OPERATIONS ATS has converted excess passenger capacity in its SuperFerries into container and RoRo capacity to satisfy increasing demand and improve flexibility. ABOITIZ TRANSPORT SYSTEM TRANSPORT 24 ABOITIZ EQUITY VENTURES ANNUAL REPORT 2006
RESULTS OF OPERATIONS TRANSPORT In 2006, Aboitiz Transport System Corporation (ATS) contributed π142 million to AEV’s bottom line, an increase of 313% over the same period last year. The transport group contributed 3.5% of the total income contributed by AEV’s business units. Despite a decline in freight and passenger volumes, ATS was able to book a profit in 2006 and reduce its interest-bearing debt by π1.2 billion. Faced with continued challenges of high fuel prices, intense competition and increasing customer demands, the company focused on realigning its efforts to be able to capitalize on the economic upturn and sustain profitability in the long term. ATS sold four vessels during the year: Our Lady of Fatima, Our Lady of Guadalupe, SuperFerry 17 and SuperFerry 18. It also sold its entire shareholdings in Davao Integrated Port and Stevedoring Services Corporation (DIPPSCOR), its cargo handling operations in Davao. These moves generated book gains of π489 million and brought in π1,328 million in cash to ATS. Focus was therefore placed on reducing debt, rationalizing cost structures, increasing earning capacity of all assets and improving service delivery across the organization. The 2GO freight business has evolved towards increasing freight capacity and Roll-on Roll-Off (RoRo) movements. This was marked by the entry of the 2GO1 container ship with capacity of over 400 TEUs. The company also collaborated with customers to provide them with a new service, 2GO RoRo, a self-driven cargo service that is given priority loading to ensure faster delivery lead-time. The newly converted SuperFerry 12 adds RoRo capacity to the ATS freight business. Moving forward, ATS will continue to support what it has set out to do: capitalize on its integrated transport businesses to achieve higher operating efficiencies and provide complete logistics solutions to its customers. SuperCat Fast Ferry Corporation’s (SFFC) operating profit was significantly affected by the increase in fuel costs. Consequently, it contributed a loss of π4 million in 2006 versus a loss of π2.8 million in the previous year. The company transported 1.2 million passengers in 2006, down by 19% from 2005. In the last quarter of 2006, SFFC had 4 operating vessels versus 2 in 2005. The company re-tooled its fleet in 2006 with more fuel-efficient monohull propellerdriven vessels chartered from Penguin Boat International Ltd of Singapore. These boats now to serve the Batangas-Calapan and Cebu-Ormoc routes. In November 2006, SuperCat resumed servicing the Cebu-Tagbilaran route with trips scheduled three times daily. ABOITIZ EQUITY VENTURES ANNUAL REPORT 2006 25 Transport
Page 2 and 3: CONTENTS Financial Highlights 2 Rep
Page 4 and 5: FINANCIAL HIGHLIGHTS 06 05 04 Reven
Page 6 and 7: REPORT TO OUR STOCKHOLDERS FROM YOU
Page 8 and 9: We intend to list Aboitiz Power Cor
Page 10 and 11: Market Capitalization (in billion p
Page 12 and 13: RESULTS OF OPERATIONS FROM YOUR CHI
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Page 28 and 29: RESULTS OF OPERATIONS The increase
Page 30 and 31: REPORT TO OUR STOCKHOLDERS FROM YOU
Page 32 and 33: REPORT TO OUR STOCKHOLDERS Growth P
Page 34 and 35: SN ABOITIZ POWER, INC. With four ge
Page 36 and 37: HEDCOR, INC. A Hedcor engineer uses
Page 38 and 39: DAVAO LIGHT AND POWER COMPANY Davao
Page 40 and 41: VISAYAN ELECTRIC COMPANY VECO linem
Page 42 and 43: UNIONBANK OF THE PHILIPPINES UnionB
Page 44 and 45: CITY SAVINGS BANK Moving forward, C
Page 46 and 47: PILMICO FOODS CORPORATION Living up
Page 48 and 49: ABOITIZ TRANSPORT SYSTEM The entry
Page 50 and 51: ABOITIZ GROUP FOUNDATION, INC. In 2
Page 52 and 53: CHRISTMAS OUTREACH PROJECT Expressi
Page 54 and 55: ABOITIZ FUTURE LEADERS’ BUSINESS
Page 56 and 57: ABOITIZ EQUITY VENTURES LOCATION OF
Page 58 and 59: CORPORATE OFFICERS Stephen G. Parad
Page 60 and 61: Independent Auditors’ Report The
Page 62 and 63: ABOITIZ EQUITY VENTURES, INC. AND S
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ABOITIZ EQUITY VENTURES, INC. AND S
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Investor Information Head Office: A
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