Trade recovery lifts ATI results

MANILA, Philippines — Higher cargo volumes amid signs of trade recovery  lifted Asian Terminals Inc. (ATI)’s performance in the first quarter.

ATI’s net income climbed by 19 percent to P562.9 million from January to March from  P472.5 million in the same period last year.

The company attributed the increase to continued cost savings initiatives started during the second quarter of 2020, as well as the implementation of the CREATE Law which reduced the income tax rate from 30 percent to 25 percent.

ATI also ended the quarter with a 5.5-percent improvement in revenues to P2.72 billion from P2.58 billion in the same period last year.

Revenues from ATI’s international containerized cargo operations in Manila South Harbor and Batangas Container Terminal jumped by nine percent and 7.6 percent, respectively, mainly on account of higher container volumes.

ATI’s Manila and Batangas international gateway ports handled over 327,000 twenty-foot equivalent units (TEUs) in consolidated container volume during the first quarter, a five percent increase from the same period last year.

ATI executive vice president William Khoury earlier said volumes are expected to pick up this year and finish higher than 2020.

However, Khoury said volumes are still not expected to return to pre-pandemic levels until 2022 or 2023.

ATI is spending around P6 billion for capital investment this year to bankroll ongoing port expansion and modernization projects in Manila and Batangas and to explore new growth opportunities.

This includes the current upgrade of the Batangas Passenger Terminal and the ongoing yard expansion and extension of berth facilities in Pier 3 of Manila South Harbor.

ATI early this year took delivery of five brand new rubber-tired gantry cranes, effectively increasing Manila South Harbor’s fleet by 22 percent to 28 units.

“ATI’s investment programs on vital port infrastructure are in line with its commitment with PPA and in support of the post-pandemic resurgence of the economy,” the company said.