Aboitiz Transport System (ATS) reported net income of P546 million last year, a 559 percent improvement over just P83 million in 2008 even as consolidated revenues dropped P1 billion, largely from the drop in freight revenues.

In a disclosure to the Philippine Stock Exchange Thursday, the firm said its international ship chartering revenues decreased P1.3 billion due to a depressed market.

In September 2009, ATS lost a ship and the Maritime Industry Authority thereafter temporarily suspended the remainder of its fleet. This greatly affected freight and passenger business.

All vessels ultimately passed the Maritime Industry Authority’s audit and inspection and were cleared for sailing shortly after the suspension. All ATS vessels, their cargo and passengers are fully insured to the extent mandated by law.

The last quarter of 2009 was also plagued by devastating typhoons, affecting overall operations although ATS responded with speed and resources.

Local freight business contributed P5 billon in 2009, an 8 percent decrease from the same period in 2008. Passenger business revenues, inclusive of auxiliary revenues, dropped to P2.2 billion from P2.6 billion in 2008.

On the other hand, ATS’ overall value added business, inclusive of supply chain, jumped P1 billion to reach P3.2 billion in 2009. ATS continues to build on this business with bright industry prospects.

The lowering of fuel cost, ATS’ single largest expense item, has led to a P2 billion decline in operating expenses and 54 percent improvement in earnings before interest, taxes, depreciation and amortization (EBITDA) to register at P1.5 billion in 2009.

Assets of the company were being refleeted and modernized to increase operating efficiencies. Slowly, ATS is replacing some of the capacities it lost, after it sold vessels in the past partly to capitalize on high market rates.

In 2009, internally generated funds were used to purchase two freighters, two fast crafts, and one roro-passenger vessel at very competitive rates.

In addition to asset purchases, funds were also used for the regular maintenance of its assets, including drydocking and vessel improvements.