The Philippine Ports Authority (PPA) posted a lower net income for the first five months of the year compared to the same period in 2013 despite favorable results from almost all its revenue areas.
Net income reached P2.303 billion, 13.26% below the P2.655 billion recorded in 2013, pulled down mainly by the drop in the port authority’s fund management income (FMI). The latest figure is, however, 67.3% above the target of P1.376 billion.
FMI slumped 31% to P30.61 million from the P44.2 million posted last year due to increased operational spending, resulting in lesser funds for short-term investments.
Gross revenues fell 1.08% to P4.616 billion compared with P4.666 billion a year ago, but were up about 11% vis-à-vis the P4.149-billion target.
Port revenues accounted for P4.586 billion of the total, a 25% increase from the P3.67 billion figure of last year.
Revenues from Port District Offices were recorded at P4.583 billion, accounting for 99.94% of the total, while revenue from the Head Office represented 0.06% or P2.81 million, with the remaining percentage coming from private ports.
For the same period in review, expenses went up 15% to P2.313 billion against P2.01 billion.
Operating expenses likewise grew, inching up 14.2% to P2.195 billion compared with the P1.922 billion registered in the same period last year, attributed to increased costs. The latest figure is, however, 18.21% down from the target of P2.684 billion.
Non-operating expenses rose 32.97% to P117.85 million from P88.63 million last year, due primarily to interests paid on the P1-billion Philippine Veterans Loan and the guaranty fees incurred on the P2-billion corporate notes and on the Batangas Port Development Project II.
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