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MANILA, Philippines - The country's largest shipping company said losses fell in 2011 mostly because of higher sales from its freight and passenger businesses.
In a filing with the Philippine Stock Exchange, 2GO Group Inc. reported a net loss of P626 million last year, an improvement from P755 million in 2010.
Revenues reached P12.97 billion in 2011, up 11.7 percent from P11.61 billion in 2010.
The shipping firm's local freight business recorded a seven percent increase in revenues to P5.68 billion last year.
Its revenues from the passenger business also went up by nine percent to P2.38 billion last year from P2.18 billion in 2010.
The company's total cost and expenses reached P13.32 billion, nine percent higher than P12.25 billion because of rising fuel prices.
"Given the uncertain fuel price behavior, 2GO continues to undertake various initiatives to mitigate its negative impact including the use of less expensive type of fuel," the company said.
The company said delays in the change in management control led to above-forecast expenses.
"This in turn delayed the withdrawal from sub-optimal contractual relationships earlier entered into by previous management, where much of the synergies were earlier envisioned," 2GO said.
Aboitiz Equity Venture Inc. and Aboitiz and Co. Inc. earlier sold their combined 93.2 percent stake in Aboitiz Transport System (ATS) to Negros Navigation Co. (Nenaco) for P4.3 billion. The Aboitiz group also sold its stake in Aboitiz Jebsen Bulk Transport Corp., Aboitiz Jebsen Manpower Solutions Inc. and Jebsen Maritime Inc. to Nenaco, but held on to Abojeb.
For 2012, 2GO aims to continue providing value added services at the lowest cost.
"With a stronger handle on cost and expenses today, the next focus is on top line revenues. The realization of the synergies pursued with aggressiveness throughout 2011 is expected to be the fulcrum with which improvements in top line revenues would provide healthier gross margins and bottom line figures in 2012," 2GO said.
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