PPA ports exceed income target by 86%

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ID-100121015The Philippine Ports Authority (PPA) saw its net income in the first four months of 2015 increase by more than 22% compared to the same period a year ago and by more than 86% over its target.

From January to April, PPA’s net income rose 22.41% to P2.54 billion from P2.08 billion year-on-year and exceeded the P1.36-billion target by 86.47%, latest data showed. Gross revenues likewise went up 20% to P4.45 billion from P3.7 billion last year. Of the total, port revenues contributed P4.42 billion, while Fund Management Income (FMI) chipped in P29.8 million.

Port revenue for the period was 20.36% higher than last year’s P3.67 billion, whereas the FMI soared 16.73% from P25.53 billion.

“Such increase was primarily attributable to the surge in cargo traffic at the ports,” PPA general manager Atty. Juan Sta. Ana said in a statement.

“The favorable FMI, meanwhile, was due to the increased volume of funds placed under special and high yield deposits with Land Bank and the Veteran’s Bank,” Sta. Ana added.

Total expenses during the period amounted to P1.9 billion, up P286 million or 17.66% against the previous year’s P1.61 billion, but lower than the target by P409 million or 17.67%.

Operating expenses jumped by P369.11 million or 24.39% from P1.51 billion in 2014 as PPA continued its repair and maintenance projects and recognized its amortization of intangible asset (i.e., computer software).

Non-operating expenses (e.g. gain/loss on foreign exchange, other losses, etc.) fell 78.11% from last year, principally due to a decline in guarantee fees and interest expense on domestic loan, specifically the P1-billion Philippine Veterans Bank term loan.

Meanwhile, PPA remitted P1.817 billion in dividends to the national coffers in 2014 to remain in the “billionaires” club, a group of government-owned and controlled corporations that have declared P1 billion or more in annual dividends. PPA ranked fifth behind the Bases Conversion Development Authority, Development Bank of the Philippines, Food Terminal, Inc., and Philippine Deposit Insurance Corp.

The state-owned agency’s remittance in 2014 was also higher by 80% than its dividend of P1.009 billion remitted in 2013.

Image courtesy of Stuart Miles at FreeDigitalPhotos.