PPA Jan-Nov profit overshoots target by 70%

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The Philippine Ports Authority (PPA) posted a 17% hike in net profit in the first 11 months of 2016, anchored on its strong financial performance from July to November last year.

Latest data from PPA showed that net profit before tax reached P7.164 billion, or P1.027 billion higher than the P6.137 billion posted in the same period in 2015, due to the increases in roll-on/roll-off (RoRo) fees, berthing fees, and vessel lay-up fees.

Compared with the programmed target of P4.227 billion, the 11-month profit is higher by 70%, or by P2.936 billion.

The state-owned corporation noted that the positive performance came despite external factors, including the continued volatility of the foreign exchange rate, that have affected the strength of the Philippine peso.

PPA general manager Jay Daniel Santiago in a statement said the favorable revenue record somehow softened the pressure of the anti-port congestion measures put in place some two years ago, particularly on the storage fee that dropped more than 26% as of end November 2016.

“In the last five months, we almost tripled our revenues compared to our collection in the first semester of 2016,” Santiago said.

“This performance exhibits an overall healthy financial condition with indications of strong ability to service obligations and long-term financial security,” the PPA chief stressed.

“The agency will continue to work harder this 2017 to improve its revenues that will eventually translate to better and efficient ports and services for the public in the short- and long-terms,” Santiago added.

Total revenues for the agency, meanwhile, totaled P12.901 billion for the period under review, or 8.03% higher than the P11.942 billion raked in during the January to November 2015 period. The total is higher by 10.13% compared to the programmed revenue of P11.714 billion.

Fund Management Income (FMI), however, declined by almost 7% to P74.84 million from P80.35 million in 2015 due to the slump in interest rates for special and high-yield savings deposits resulting from the volatile market behavior and global economic and political uncertainties.

Total expenses fell 1.25% to P5.812 billion from the P5.886 billion disbursed during the same period in 2015. The decrease followed the reduction in operating expenses due to the gradual disbursement in the implementation of repair and maintenance projects, complemented by the decrease in other administrative costs and depreciation targets. However, this was counterweighed by the increase in non-operating expenses because of interest charges on matured foreign loans.

PPA said it continues to pour a large portion of its resources into port infrastructure facilities nationwide, and as of end-November, the agency has completed 55 projects, while 64 are still ongoing, one has been suspended, and 51 others are about to start. PPA has allotted about P6.068 billion for these projects.

“These projects are targeted to improve the capacity, service standards, and efficiency of ports, consistent with the government’s development agenda and strategic objectives as well as the Authority’s vision of providing globally-benchmarked services,” Santiago said.

Meanwhile, the maritime community in Panay Island is getting a new boost after a multipurpose maritime center broke ground in the heart of Iloilo City.

Set to be a one-stop shop for the maritime community, the venture is slated to be completed in the second quarter of the year. It includes a four-story building with roof deck and elevator as well as a perimeter fence, a driveway, a parking area, and a soft scope.

The development, which will cost about P60 million, is a multi-agency initiative led by the Angkla Partylist through Representative Jesulito Manalo. PPA contributed the land while the Department of Public Works and Highways Region VI will finance the building. The Maritime Industry Authority will be providing the personnel to carry out the objectives of the center.

Iloilo is a maritime hub with a respected maritime school, the John B. Lacson Foundation Maritime University, which trains ship officers.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net