Cebu-based Aznar Shipping Corp. posted a 155-percent jump in first-half net income as revenue more than doubled, giving the ferry operator stronger financial momentum as it moves toward a planned initial public offering.
Net income rose to P53.19 million in the six months ended June from P20.85 million a year earlier, while revenue surged 110 percent to P210.99 million from P100.59 million.
Earnings before interest, taxes, depreciation and amortization climbed 97 percent to P103.12 million from P52.41 million.
Aznar Shipping attributed the growth mainly to additional vessel capacity, including MV Manoling 6 on the Cebu-Negros Occidental route and MV Alexander 1 on the Cebu-Leyte route. The added capacity lifted cargo and passenger volumes.
Rolling cargo and vehicle transport accounted for about 86 percent of first-half revenue, with passenger services making up the remainder.
“Our first-half results reflect the additional capacity we have deployed across our operations and the sustained demand for moving goods, vehicles and people between islands in the Visayas,” President and CEO Kyle Alexander C. Aznar said.
The earnings increase comes as the company prepares to tap the stock market with an offer of up to one billion primary common shares at an indicative price of up to P0.67 each.
It also plans an over-allotment option covering up to 100 million secondary shares. At the maximum indicative price, the primary offering could raise as much as P670 million in gross proceeds.
Aznar Shipping plans to use its expansion strategy to deepen its presence on short-haul, high-frequency feeder routes connecting Cebu, Leyte, Panay and Negros Occidental.
The planned listing would give the company another source of capital as it adds vessels and capacity to serve the Visayas inter-island market.
