Tug Malta's profits down

Tug Malta Ltd posted a pre-tax profit of Lm242,000 during the financial year ending September 30, 2003, a 46 per cent drop on the Lm445,000 registered in the previous year.

Tug Malta chairman John E. Sullivan said the year had been an eventful one, in particular because of the introduction of a shift system resulting in the manning of two tugs at Marsaxlokk and one tug at Grand Harbour on a 24-hour basis, seven days a week, every day of the year.

He said it was unfortunate, however, that this improvement in service had not been fully recognised by a number of the company's customers, as most users continued to resist a fair review in the tariff structure, which has remained unchanged for 14 years.

He said the company was discussing with its shareholders the revision of the tariffs so that they would be in a position to acquire new tugs and substantially improve the service.

Total income from towage services in the year decreased slightly to just under Lm2.4 million, only Lm13,000 less than the income registered in 2002.

Income from operations at Marsaxlokk dropped by some Lm7,000, with the number of tug movements up by 11.2 per cent.

Income from operations at Grand Harbour increased by some 10 per cent compared to the previous year.

At Malta Drydocks, ship movements again decreased - this time by 25 per cent - from 241 the previous year to 181, with income also decreasing from Lm97,000 to Lm60,000 (- 38 per cent).

Due to the preferential rates laid down in 1980 that are still charged to the drydocks, the company only covers about 38 per cent of the operational and administrative costs of the movements carried out in this sector, Mr Sullivan said.