PPA net profit jumps 17% to P7.16 billion, eclipses target by 70% as of end November 2016

JANUARY 17, 2017, MANILA—State-owned Corporation Philippine Ports Authority (PPA) posted a 17% hike in net profit in the 11-month period of 2016 anchored on the strong financial performance of the agency during the last five months.

The accumulated amount was also significantly higher compared to the target for the entire 11-month period in 2016.

The PPA was able to achieve such financial stability despite the continuing slide in the foreign exchange rate and other external factors affecting the strength of the Philippine peso.

Latest data from PPA showed that net profit reached P7.164 billion or P1.027 billion higher than the P6.137 billion posted in the same period in 2015 due to the increases in Ro-Ro fees, Berthing Fees and vessel lay-up fees.

Compared to the target, the 11-month profit is higher by 70% or P2.936 billion as against the programmed margin of P4.227 billion.

PPA General Manager Jay Daniel R. Santiago said the favorable revenue record, particularly those mentioned, somehow softened the pressure of the anti-port congestion measures put into place some two years ago particularly on the storage fee that dropped more than 26% as of end November 2016.

“In the last 5 months, we almost tripled our revenues compared to our collection in the first semester of 2016,” Santiago said.

“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 this 2017 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.

Total revenues for the agency, meanwhile, totaled P12.901 billion for the period in review or 8.03% higher than the P11.942 billion raked in during the January to November 2015 period. As against the target, the total is higher by 10.13% compared to the programmed revenue of P11.714 billion.

Fund Management Income (FMI), however, declined by almost 7% to P74.84 million from P80.35 million due to the slump in interest rates for special and/or high-yield savings deposits resulting from the volatile market behavior in view of the global economic and political uncertainties.

Total expenses fell 1.25% to P5.812 billion from the P5.886 billion disbursed during the same period in 2015. The decrease was propelled primarily by the reduction in Operating expenses due to the gradual disbursement in the implementation of Repair and Maintenance projects complemented by the decrease in Other Administrative Costs and Depreciation Targets. However, this was counterweighed by the increase in Non-operating Expenses because of interest charges on matured foreign loans.

PPA continues to pour a large portion of its resources in port infrastructure facilities nationwide and as of end-November, the agency completed 55 projects, 64 are still ongoing, 1 suspended and 51 others are about to start. PPA has allotted approximately P6.068 billion for these said projects.

“These projects are targeted to improve the capacity, service standards, and efficiency of ports, consistent with the government’s development agenda and strategic objectives as well as the Authority’s vision of providing globally-benchmarked services,” Santiago said.