MANILA, JULY 9, 2015—The Philippine Ports Authority (PPA) posted a significant hike in its net income for the first four months of the year due mainly to the hike in cargo traffic in majority of its controlled ports.
Latest data from PPA showed that net income increased by 22.41% to P2.54 billion from P2.08 billion posted in the same period last year. Against the target of P1.36 billion, the actual figure is also higher by 86.47%.
Gross revenues, on the other hand, posted a 20% hike to P4.45 billion for the period against last year’s figure of P3.70 wherein port revenues contributed P4.42 billion and the Fund Management Income (FMI) chipped in P29.80 million.
The port revenue registered was also higher by 20.36% compared to last year’s P3.67 billion while the FMI soared by at least 16.73% from P25.53 billion posted in the same period last year.
“Such increase was primarily attributable to the surge in cargo traffic at the ports,” PPA General Manager Juan C. Sta. Ana said.
“The favorable FMI, meanwhile, was due to the increased volume of funds placed under special and high yield deposits with Land Bank and the Veteran’s Bank,” Sta. Ana added.
Total expenses incurred by the Authority during the period amounted to P1.90 billion, up by P286 million or 17.66% against the previous year’s P1.61 billion. However, it is lower than the target by P409 million or 17.67%
In the same way, Operating expenses went up by P369.11 million, which is equal to 24.39% from P1.51 billion expended in 2014, because of PPA’s continued Repair and Maintenance projects in addition to the recognition of Amortization of Intangible Asset, i.e., computer software.
Non-operating Expenses (e.g. Gain/Loss on Foreign Exchange, Other Losses, etc.) fell by P83.10 million or 78.11% compared to last year. The drop in expenses was principally due to the decline in Guarantee Fees and Interest Expense on Domestic Loan or the P1 billion Philippine Veterans Bank Term Loan.
Meanwhile, the PPA remained in the ‘billionaires’ club for dividends for the fiscal year 2014 when it remitted about P1.817 billion to the National coffers.
The PPA ranked fifth in the club behind the Bases Conversion Development Authority; the Development Bank of the Philippines; the Food Terminal, Inc.; and the Philippine Deposit Insurance Corp.
The amount remitted for 2014 is also higher by 80% compared to the dividend the state-owned agency remitted in 2013 amounting to P1.009 billion.
“The PPA continues to make necessary adjustments not only to bring in more revenues to the Government also to make our ports more responsive to the prevailing economic conditions particularly in safety, safety and convenience of cargo and passengers passing through our ports,” Sta. Ana added.