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PPA H1 income up 31% on higher revenue, lower expenses

Image by OpenClipart-Vectors from Pixabay

The Philippine Ports Authority (PPA) recorded a net income of P5.818 billion in the first half of 2019, 31.34% higher than the P4.429 billion earned in the same period last year, due to improved revenues and lower expenditures.

Revenues for the first six months of the year reached P8.996 billion, up 12.08% from P8.027 billion in the same period last year and more than the P8.171 billion target for the period under review, according to PPA’s performance report as of June 2019.

Service and business income in particular improved 12.12% due to higher shipping and trade volume, in addition to the effects of tariff rate adjustments at Manila North Harbor; Manila International Container Terminal; Manila South Harbor; and the ports of Tagbilaran, Bohol; Dapitan, Zamboanga del Norte; and Dapa, Surigao Del Norte; as well as due to the positive impact of dollar-denominated tariff.

A big chunk of the service and business income came from PPA’s shares in the fees of port operators International Container Terminal Services, Inc. (ICTSI) and Asian Terminals Inc. (ATI), which have concession agreements with the authority. Shares from ICTSI grew 8.83% to P2.644 billion while ATI’s contribution rose 12.82% to P1.452 billion.

Wharfage dues were also a big contributor during the period at P1.528 billion.

Meanwhile, PPA’s total corporate expenditures went down 11.63% to P3.179 billion from P3.598 billion last year.

PPA earmarked P5.816 billion to finance locally funded projects this year, and as of June 2019, has utilized 11.10% or P645.85 million.

As of June 2019, PPA implemented 131 locally funded projects, covering carry-over and new projects, nationwide. Of the total, 58 projects are for Luzon ports, 28 are for ports in the Visayas, and 45 are for Mindanao ports.

The port authority also programmed the removal of 1 million cubic meters (cu.m.) of silt at various piers and harbors to ensure that serviceable water depths are maintained for the safe navigation of larger vessels calling ports.

This year’s budget for dredging is P700 million, covering carry-over and new projects.

In the first half of the year, PPA utilized 16.5% or P115.20 million for a total of 501,172.82 cu.m. of silt removed at the ports of North Harbor, Ozamiz, Calatagan, Dapitan, Iligan, Guiuan, Cagayan de Oro, Surigao, Masao, San Jose de Buenavista, and Culasi. Other ports with dredging projects are still under various stages of procurement.

PPA approved a total budget for repairs & maintenance projects of P2 billion, utilizing 27.40% or P547.88 million as of June 2019.

Port facilities and structures are programmed for routine and preventative maintenance this year to ensure their safe and serviceable condition at all times. As of June 2019, a total of 99 projects have been completed, 37 are ongoing, and three have not yet started. – Roumina Pablo


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