19 JANUARY 2018, MANILA—The Philippine Ports Authority (PPA) posted a 16% hike in its net income in the January to November 2017 period despite starting the year on a conservative mood.
PPA was able to achieve the feat through its sound financial condition and strong Philippine economic status despite having some concerns with the Philippine peso the entire year.
Latest data from the PPA showed that net income for the period in review reached P8.310 billion or some 16% higher than the P7.164 billion posted a year earlier.
The actual figure also eclipsed the forecasted net income of P5.983 billion for the period by P2.326 billion or 38.87%.
PPA General Manager Jay Daniel R. Santiago is ecstatic about the prospect of ending the agency’s fiscal year way above the red line despite forecasting to at best flat growth for 2017 due to concerns clouting the mining industry and the volatile foreign exchange rates.
“The performance of the PPA is way above expectation as we were able to eclipse almost all forecasted levels of the financial facet of the agency,” Santiago said.
“We expect an even bigger margin when our December figures start to come in. Not only for December but for the entire 2017 considering that we overshoot our targets by at least 10% every month until the end of November,” Santiago explained.
Total revenues during the 11-month period, meanwhile, grew by 6.71% to P13.846 billion from P12.976 billion collected in the same period in 2016. Port revenue went up by 6.61% to P13.754 billion from P12.901 billion due primarily to increase in volume of traffic at the ports as well as the adjustment in foreign exchange rates. The top five revenue earners are NCR South, Batangas, Davao, Bataan/Aurora, and Surigao.
Fund Management Income (FMI), on the other hand, increased by 22.92% to P91.99 million from P74.84 million for the same period in 2016 anchored on the purchase of a P500 million Treasury Bills, which, in effect, increased the volume of investments funds of the PPA. This facilitated the revamp in earnings and counterweighed the fluctuations in prevailing interest rates on special and high-yield savings deposits and economic uncertainties.
Total expenditures for the period in review fell by 4.73% to P5.537 billion from P5.811 billion in 2016 wherein Operating Expenses amounted to P5.398 billion, down 5% from P5.657 billion a year earlier. Non-operating expenses likewise went down by 9.9% to P139.02 million for the period in review from P154.30 million a year earlier.
“This performance exhibits an overall healthy financial condition with indications of strong ability to service obligations and long-term financial security,” Santiago stressed.
“The agency will continue to work harder in 2018 to improve its revenues that will eventually translate to better and efficient ports and services for the public in the short- and long-terms,” Santiago added.