MARCH 22, 2015, MANILA—The Philippine Ports Authority (PPA) posted a 15% hike in net income despite the Manila port congestion, which bugged the port for the majority of 2014.
Latest data from the state-owned agency showed that net income after tax reached P4.26 billion from P3.70 billion posted in 2013.
The actual figure is also higher by about 16% compared to the target net income of P3.67 billion or a difference of about P582 million.
Gross revenues, on the other hand, posted an increase of 13.5% to P12.57 billion for the period in review as against the 2013 registered amount of P11.07 billion or a difference of about P1.50 billion.
Port revenues posted the biggest increase in 2014 after posting about 25% hike from P9.99 billion in 2013 to P12.46 billion. It is also by 20% compared to the target port revenues of P10.41 billion.
However, the Fund Management Income (FMI), which is the other half that comprises the Gross Revenues along with the port revenues, declined significantly to P103.21 million or about 16% below the 2013 level of P122.50 million.
“The considerable increases in almost all aspects of the revenue generation process of the agency can be attributed primarily to the increase in traffic volume at the ports despite the congestion issue involving the Manila ports,” PPA General Manager Juan C. Sta. Ana said.
“The decrease in FMI, on the other hand, was due to the decline in interest rates on special and high-yield savings deposits and the termination of Bond Sinking Fund held by the Bureau of Treasury from which interest income is also derived,” Sta. Ana explained.
Total expenses, meanwhile, also posted a considerable hike of 9.68% to P6.47 billion from only P5.89 billion spent for the entire 2013 period. Operating expenditures grew by P557 million or 8.88% to P6.83 billion from an a-year-ago level of P6.27 billion as a result of the incurrence of Accountable forms expense and amortization of intangible asset.
Non-operating expenses of the Authority during the year was recorded at a negative P361.94 million which is already a slight increase by P13.85 million or 2.68% over the figure posted in 2013 primarily due to fluctuations in foreign exchange.