MANILA, SEPTEMBER 26, 2016—The Philippine Ports Authority (PPA) posted a seven consecutive month of positive net income registering another double-digit increase after tax.
Latest data from the PPA showed that net income for the Jan-Jul 2016 period is at P4.39 billion or 16% higher than the P3.78 billion posted in the same period in 2015.
Likewise, the actual figure is higher by 64.22% compared to the target set for the seven-month period of P2.67 billion.
PPA General Manager Jay Daniel R. Santiago explained that the positive deviation in net income can be attributable to the increases in Wharfage dues, ICTSI and ATI Fees as well as Dockage and Berthing Fees, among others.
“The strong financial performance of the PPA only reflects the strong cargo foreign and local cargo volumes of the country,” Santiago said.
“We expect to be continually financially sound even if there is a sharp decrease in our storage revenues brought about by a streamlined procedure in the withdrawal of cargoes from our ports and the utilization of the truck Terminal Appointment Booking System,” Santiago stressed.
“Similarly, with this figure, the agency is on track of duplicating its feat and maintaining its position as a Class A GOCC that remits billions of dividends to the national coffers to aid the country in nation building,” Santiago added.
Gross revenues generated for the period reached P8.07 billion, posting an increase of 4.29% from 2015. Operating revenue in particular totaled P8.02 billion or an increase of 4.37% from the P7.7 billion recorded in 2015.
However, Fund Management Income, for the period in review, declined 8.8% to P45.09 million primarily due to the low interest rates on special savings deposits as compared to the interest rates for the same period last year.
Total expenses, on the other hand, reached P3.44 billion or 7% lower than the P3.70 billion spent in the Jan-Jul 2015 period. Of the amount, P3.37 billion is disbursed as Operational expenditures and the residual amount, which is P71.71 million, as Non-Operational Expenditures.
Operating expenses went down by 7.9% against actual disbursements in 2015 because of the decrease in outlays for Repair and Maintenance projects incurred during the period.
Conversely, Non-operating expenses went up by as much as 85% to P71.71 million from P38.71 million in 2015 due mainly to the interest charges on matured foreign loans and its foreign exchange rate differences.
This year, the PPA has allocated P6 billion for capital expenditure to finance the expansion of major seaports nationwide.
The investment will be spent for the expansion of the ports in Iloilo, General Santos, Cagayan de Oro and Zamboanga.
Of the total investment, PPA completed nine major infrastructure projects worth P313.03 million as of March this year. Construction is ongoing in seven sites with transport connectivity enhanced through the provision of Roll-on and Roll-off ramp.