MANILA, JUNE 13, 2017—The Philippine Ports Authority (PPA) posted encouraging revenue figures in the first quarter, a month after revising down its growth forecast for 2017.
Latest data from PPA showed that net income went up 23% to P2.3 billion for the period compared to the P1.93 billion registered in the same period last year. The figure is also higher by 32.84% against the target of P1.78 billion.
It maybe recalled that in February, the PPA overhauled its growth forecast for this year despite registering a banner year in 2016 to at best flat due to vital developments over the past couple of months like the continuing volatility of the Philippine currency and the expected drop in the operation of the mining industry in the Philippines.
According to the data, the positive results generated during the period as well as the decline in total corporate expenditures contributed heftily in the increase in net profit for the quarter.
Gross income, on the other hand, soared to P3.48 billion or 9.10% higher than the P3.19 billion collected in 2016. The higher income was anchored on the strong collection of Arrastre and Stevedoring fees, Dockage fee, Pilotage fee and the variable fees coming from the Manila ports cargo-handling operators Asian Terminals, Inc., International Container Terminal Services, Inc. and Manila North Harbour Port, Inc.
Fund Management Income (FMI), meanwhile, declined by 1.92% due to the effects of the volatile financial market in view of the weakening Peso as well as the global economic and political headwinds on the activity of the country.
Total Expenditures, which cover Operating and Non-operating expenses, slipped 11.60% to P1.11 billion due primarily to the decline in Operating Expenses resulting from reduced outlays for Repair and Maintenance and Dredging Projects of the Authority, and the decline in costs related to Personal Services.
Similarly, non-operating expenses went down by 5.29% to P45.27 million, owing from lower financial expenses, particularly guarantee fees.
For 2017, the revised Corporate Operating Budget (COB) was reduced to P14.59 billion which is only 2% higher than the 2016 COB as revenues from Port Dues, Berthing, Anchorage, Arrastre/Stevedoring, Pilotage, Wharfage for export, Ro-Ro fees as well as non-traditional income sources, are expected to shrink.
Revised Operating Expenses, on the other hand, ballooned to P16.22 billion this year from only P9.33 billion last year while total capital expenditures increased to P7.42 billion this year compared to the P3.50 billion in 2016 in order to implement several port projects that include the modernization of Mindanao and Visayas ports like Iloilo, Gen. Santos, Cagayan de Oro and Zamboanga, improvement of all passenger terminal buildings, repair and maintenance projects, and the implementation of 14 other capital expenditure projects.
Total Budgetary Outlays for the Authority this year is pegged at P23.64 billion compared to the total budget source of P23.87 billion.