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Aznar Shipping Corp. posted a 155% jump in first-half income to P53.19 million from P20.85 million year-on-year
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Revenue grew 110% to P210.99 million mainly due to additional vessel capacity and higher passenger and cargo revenues
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Rolling cargo and vehicle transport remained ASC’s core revenue driver, accounting for approximately 86% of total revenues for the first half of 2026
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ASC beginning July 2026 leased four of its RoPax vessels to shipping affiliates under bareboat charter agreements, providing a complementary income stream and allowing ASC to maximize its fleet utilization
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ASC president and chief executive officer Kyle Alexander Aznar expressed confidence on the company’s planned initial public offering in December, saying their business model could withstand current bearish market conditions
Cebu-based shipping operator Aznar Shipping Corp. (ASC) posted a 155% increase in its first-half net income to P53.19 million from P20.85 million year-on-year.
Revenue grew 110% to P210.99 million from P100.59 million, driven mainly by additional vessel capacity and higher cargo and passenger revenues, ASC said in a statement.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 97% to P103.12 million from P52.41 million a year earlier, reflecting stronger operating earnings alongside the company’s higher revenues.
Seeking to launch an initial public offering (IPO) in December, ASC attributed the revenue growth primarily to the deployment of its newest vessels, MV Manoling 6 (Cebu-Negros Occidental) and MV Alexander 1 (Cebu-Leyte), which expanded operating capacity and enabled the domestic carrier to serve higher cargo and passenger volumes.
READ: Aznar Shipping files for IPO, targets P737M for expansion
Rolling cargo and vehicle transport remained ASC’s core revenue driver, accounting for approximately 86% of total revenues in the first half of 2026.
Passenger transport, meanwhile, accounted for approximately 14% of revenues during the period. Through its roll-on/roll-off (RoRo) passenger (RoPax) vessels, ASC transports both passengers and rolling cargo on the same voyage, enabling diversified revenue streams.
“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,” ASC president and chief executive officer Kyle Alexander Aznar said.
Moving forward, ASC’s strategy is “centered on disciplined fleet and route expansion, which we aim to further support by strengthening our maintenance capabilities and fleet utilization through vessel chartering,” Aznar said in a media briefing on September 18.
Aside from cargo and passengers, ASC beginning July 2026 also leased four of its RoRoPax-capable vessels to shipping affiliates under bareboat charter agreements. This provides a complementary income stream and allows ASC to maximize its fleet utilization, Aznar noted.
Moreover, Aznar said they have more than 100 regular customers with no single one of them comprising 10% of the cargo revenue. This diversity makes ASC “more resilient” and its operating base not dependent on one large account, he said.
IPO
Meanwhile, the IPO plan involves 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 P0.67 per share, subject to a book-building process.
At the maximum indicative offer price, the primary offer may generate up to P670 million in gross proceeds for the company, while secondary shares under the over-allotment option may add up to approximately P67 million, subject to market conditions and regulatory approvals.
ASC earlier announced the offer period is planned for December 1 to 8, with the listing on December 18 on the Philippine Stock Exchange’s Small, Medium and Emerging Board under the trading symbol “ALX.”
Funds from the IPO are intended to support ASC’s ongoing fleet and network expansion, as well as its plan to develop its own shipyard once the carrier reaches a certain number of vessels.
Aznar earlier said that in the next three to five years, ASC plans to add three more International Association of Classification Societies (IACS)-classed RoRo ferries as part of its fleet expansion and modernization program while eyeing more routes in the country’s central islands.
“The objective is not fleet growth for its own sake. We want incremental capacity, frequency, and service continuity only when the route economics and operating fit support vessel deployment. So we believe this positions Aznar Shipping to participate in the continued growth and trade across the Visayas,” Aznar said.
‘Like the sea’
Asked why ASC decided to pursue an IPO given challenging market conditions, Aznar said: “You know for me, market conditions, they are out of our control. They’re just like the sea, no? You can’t always hope for calm waters. It’s really out of your control. What you can do really is learn to sail in rough conditions…The market conditions aren’t in our control. But what is really in our control is really how we operate, how we run the company.”
“And for me, I believe in our business model, I believe that the fundamentals are there to help us grow. And… right now, I believe it’s the right time to expand,” he added.
Citing a study by the Center for Research and Communication, ASC noted that Visayas ports accounted for about 35% of national cargo throughput, 60% of passenger traffic, and 49% of roll-on/roll-off vehicle movements over the period 2022 to 2025. RoRo growth forecast in the Visayas in 2028 is also seen to grow by 12.90%, higher than the 10.7% growth forecasted growth nationwide.
ASC operates a short-haul, high-frequency shipping model with nine operating vessels focused on four major inter-island routes with regular calls at eight ports across the Visayas.
Its strategy is supported by broader changes in domestic shipping, with vehicles and rolling cargo increasingly utilizing smaller and secondary ports, creating opportunities for operators serving short routes between neighboring island economies.
The carrier focuses on feeder routes connecting ports across Cebu, Leyte, Panay and Negros Occidental, with vessel deployment based on prevailing port infrastructure and route economics.
“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,” Aznar said.—Roumina Pablo
