Manila: Aznar Shipping Corp., a Cebu-based shipping operator, announced a significant 155 percent increase in net income, reaching PHP53 million in the first half of the year, driven by higher revenues from expanded vessel capacity. According to Philippines News Agency, the company reported a 110 percent rise in revenues, climbing from PHP100.59 million to PHP210.99 million during this period.
Earnings before interest, taxes, depreciation, and amortization increased by 97 percent to PHP103.12 million. The growth in revenue was primarily attributed to the deployment of MV Manoling 6 on the Cebu-Negros Occidental route and MV Alexander 1 on the Cebu-Leyte route, which enhanced the company's operating capacity. Rolling cargo and vehicle transport remained the main revenue source, contributing about 86 percent of total revenues, while passenger transport accounted for the remaining 14 percent.
Aznar Shipping's president and CEO, Kyle Alexander Aznar, stated, "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. As we strengthen our fleet, we are able to serve more customers and improve the frequency and reliability of our services."
In light of sound market fundamentals, Aznar Shipping is also pursuing an initial public offering (IPO) to fund its expansion plans. The IPO will include up to 1 billion primary common shares, with an over-allotment option of up to 100 million secondary shares, at an indicative offer price of up to PHP0.67 per share, pending a book-building process. The primary offering could potentially generate up to PHP670 million in gross proceeds, while the secondary shares under the over-allotment option could bring in an additional PHP67 million, depending on market conditions and regulatory approvals.
Aznar Shipping specializes in feeder routes connecting ports in Cebu, Leyte, Panay, and Negros Occidental. Aznar highlighted the company's strategy: "Our strategy is centered on routes where recurring demand, regional market knowledge, and the right vessel deployment allow us to operate efficiently. We believe this positions Aznar Shipping to participate in the continued growth of trade and mobility across the Visayas."
