The Philippine Ports Authority (PPA) posted a 23% increase in net income to P2.3 billion for the first three months of 2017 compared to the P1.93 billion registered in the same period last year. The figure is also higher by 32.84% against the target of P1.78 billion.
In February, PPA lowered its growth forecast for 2017 despite registering a banner year in 2016 due to the continuing volatility of the Philippine currency and the expected drop in output of the mining industry.
For the first quarter, gross income rose to P3.48 billion or 9.10% more than the P3.19 billion collected in 2016. The higher income was anchored on the strong collection of arrastre and stevedoring fees, dockage fee, pilotage fee, and variable fees from Manila ports cargo-handling operators Asian Terminals, Inc., International Container Terminal Services, Inc., and Manila North Harbour Port, Inc.
Fund management income, meanwhile, declined 1.92% due to the weakening peso as well as the global economic and political headwinds.
Total expenditures, which cover operating and non-operating expenses, slipped 11.60% to P1.11 billion. Operating expenses declined due to reduced outlays for repair and maintenance and dredging projects, and the drop in cost of personal services.
Similarly, non-operating expenses went down 5.29% to P45.27 million, owing to lower financial expenses, particularly guarantee fees.
For 2017, the revised corporate operating budget has been reduced to P14.59 billion, just 2% higher than the 2016 figure with revenues from port dues, berthing, anchorage, arrastre/stevedoring, pilotage, wharfage for export, roll-on/roll-off fees, as well as non-traditional income sources expected to shrink.
Revised operating expenses for the quarter ballooned to P16.22 billion from P9.33 billion last year while total capital expenditures increased to P7.42 billion this year from P3.50 billion in 2016.
Capital spending was increased to implement several port projects, including the modernization of Mindanao and Visayas ports such as Iloilo, General Santos, Cagayan de Oro, and Zamboanga; improve passenger terminal buildings; undertake repair and maintenance projects; and implement 14 other capital expenditure projects.
PPA’s total budgetary outlay is pegged at P23.64 billion compared to the total budget source of P23.87 billion.
According to the Department of Finance, PPA remitted a total of P1.956 billion to the government in 2016, one of the highest dividends the government received for that period.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net