MANILA, September 11, 2017—The Philippine Ports Authority (PPA) continues to benefit from the country’s sound economic condition posting another strong financial performance as of end July.
The stronger than expected financial performance was complemented by the drop in its overall expenses and the rise in its Fund Management Income (FMI).
Latest data from the Philippine Ports Authority (PPA) showed that net income reached P5.58 billion or 20.5% higher than the P4.63 billion posted a year earlier. The figure is also higher by 45.6% compared to the income target for the period of P3.83 billion.
“PPA’s financial performance sustained top-line and bottom-line growth as total revenues edged up while Corporate Expenditures dipped due to sound fiscal management resulted to a substantial improvement of net income for the period,” General Manager Jay Daniel R. Santiago said.
“The sustained positive outcome in shipping and trade at the ports, resulting from the country’s upbeat economic and business atmosphere and heightened domestic demand, continue to spark progression in PPA’s operational and financial performance,” Santiago said.
“With this, the Authority’s Financial Position confirmed an overall healthy financial condition,” Santiago explained.
Similarly, total revenues went up modestly by 7.37% to P8.68 billion compared to the P8.07 billion raked in during the same period last year. The amount is likewise higher by 5.04% versus the target of P8.26 billion. The total amount of revenues was, however, dragged by the low collection from Lay-up fees that dropped 77.5% and storage fees that slid 8.5%. The remittances from port operators International Container Terminal Services, Inc., Asian Terminals, Inc. as well as cargo-handling fees and port dues contributed the bulk of the revenues growing by 12.81%, 11.35%, 12.04% and 11.15%, respectively.
FMI, which is purely a passive income on investment in Treasury Bonds and other temporary/short-term investments placed with the state-owned agency’s depository banks, posted a 34.73% hike with a total of P60.75 million as against last year’s figure of P45.09 million. As against the target FMI, the actual figure is higher by 89.3% as target is only pegged at P32.09 million.
Total expenditures, covering both Operating and Non-Operating expenses, amounted to P3.09 billion, dropping almost 10% versus the 2016 figure of P3.44 billion. Operating Expenses totaled P3.03 billion or some 9.9% lower than the January to July 2016 figure of P3.36 billion wherein Dredging Costs registered the biggest decline at 62.45%.
Non-Operating expenses also dived 10.51% to P64.17 million from P71.71 million in 2016 due primarily to the decrease in Financial Expenses, particularly Interest Expense on Foreign Loans and Other Expenses.
Earlier, the PPA has revised its financial outlook for 2017 from flat to modest growth brought about by the continuing surge in economic activities resulting in bigger cargo volume passing through the ports.
PPA is likewise upbeat that it could maintain its position in the ‘Billionaires’ club of Government-Owned and Controlled Corporations (GOCCs) with its financial showing. This year, PPA occupied the fourth spot after remitting P1.95 billion in terms of dividends to the national treasury in May.