BY GENIVI FACTAO

Keppel Philippines Marine, Inc, (KPMI) sees a positive outlook in the international shipping industry, as it gained a 55.63 percent increase in consolidated revenues to P599.8 million for the first quarter of 2007, largely due to its increasing number of ship repair jobs.

"The outlook for international shipping market remains good, and the demand for ship repair will continue to be strong. Therefore, the company expects to perform better than last year.

The net profit for the quarter went up by 59.76 percent to P84.6 million, brought by the higher sales and other income for the period.

The company attributed the increase in revenue to its shipbuilding and offshore rig fabrication and more high value repair jobs for the period in review compared to the first quarter of 2006. They expect that this will continue for the rest of the year.

Revenues from ship repair contributed 64 percent of the total sales revenue while shipbuilding and offshore rig fabrication contributed 36 percent of the total sales revenue.

The operating profit rose to P72.5 million, higher by 44.25 percent compared to 2006.

Net interest income and other income went up from P1.9 million in 2006 to P14.6 million in 2007 due to higher interest income from short-term placements and miscellaneous income.

The share of results from associated companies went up by P4.8 million, due to higher results from Subic Shipyard.

The company’s consolidated assets dropped by 0.28 percent or P11.4 million as of March 31 as compared with the balances in the latest audited financial statements in December 31, 2006.

The company’s cash decrease of 22.58 percent or P90.8 million was because of payments made to subcontractors and suppliers. Other factors; were the decrease in available for sale financial instruments by 51.82 percent or P6.1 million due to sales of shares.

Also, the decrease in other non current assets by 8.24 percent or P2.7 million was due to amortization of long-term lease.

This was partially offset by the increase in inventories by P34.9 million or 16.25 percent because of higher work-in-progress and stock on hand at the end of the quarter, and increase in other current assets of 9.69 percent or P15.50 million due to increase in input value added tax, prepaid insurance and prepaid expenses.

The accounts payable and accrued expenses went down by 9.62 percent or P119.8 million due to payments made and lower advances from affiliates by P6.7 million or 20.78 percent.

This was partially offset by the increase in income tax payable of P33.8 million or 133.02 percent because of the provisions for income tax during the quarter.