The Philippine Ports Authority (PPA) recorded a P1.629-billion net income for the first quarter, 49% higher than the P1.069 billion posted year-on-year and exceeding almost all targets for the period.
The latest net profit overshot the P960-million target by 70%.
“Simplifying requirements, reducing red tape and benchmarking Philippine port operations to world standards are giving huge positives to the agency,” PPA general manager Juan Sta. Ana said in a statement.
“With the bigger savings and higher financial flexibility, we can continue to upgrade port facilities nationwide, as well as better efficiency that will eventually translate to better service to the travelling public and trade facilitation.”
Revenue up 32%
Gross revenue reached P2.790 billion or 32.5% higher than the P2.105 billion posted for the same period in 2013. The figure is also 17% higher than the P2.393-billion goal.
Port revenue was recorded at P2.770 billion, up 34% from last year’s P2.071 billion and 17% higher than the target of P2.374 billion.
Fund management income, however, dropped 42% to P19.78 million against last year’s figure due to increased operational spending resulting in less temporary idle cash available for use in short-term investments.
Higher expenses
Total expenses for the period climbed 15% to P1.160 billion but were 19% lower than the target of P1.009 billion.
Operating expenses reached P1.060 billion, or 12.72% more than the P940.58 million posted last year. Vis-a-vis target, the latest figure was lower by 20.42%. The increase in operating expenses was primarily due to a surge in the cost of administration and continued repair and maintenance projects.
Non-operating expenses like financial charges and gain/loss on sale of disposed assets, increased by P31.81 million or 46.18% to P100.70 million. The uptick was due to guaranty fees on loans for the Batangas Port Development Project; interest expense on the P2-billion domestic corporate notes; and interest expense on foreign loans specifically for the Batangas port project.— Roumina M. Pablo
Image courtesy of Danilo Rizzuti / FreeDigitalPhotos.net
