Negros Navigation has posted 50 percent increase in net income of P203 million for the first semester of the year compared to the same period in 2008.

The company attributed its significant improvement in the bottom line figures to the increase in revenues coupled with marked decreases in both operating and administrative expenses.

Total revenues for the year 2009 jumped 7 percent to P1.03 billion from P968 million in the same period last year. Freight revenues, which constitute 62% of the core revenues, improved by 27% compared to the previous year due to the combined impact of the increases in volume and rates.

Cargo volume soared 11% due to the increase in capacity with the acquisition of two additional cargo vessels. Average cargo rates increased by 14% due to the improvement in cargo mix “now focusing on high yielding cargoes such as break-bulk and class A commodities."

The company said that its passage business remained challenging due to the continued pressures from the low airfares and the nautical highway.

Direct costs and expenses of P787 million was slightly lower compared to the P789 million for the previous year. Fuel costs, which accounts for more than 40% of total costs and expenses, decreased by 10% due mainly to the declining fuel prices.

General and administrative expenses were cut down by 12% due to the continuous stringent cost management initiatives.