PPA sees 16% growth in 11-month income

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The Philippine Ports Authority (PPA) posted a 16% hike in net income from January to November 2017 to P8.310 billion from P7.164 billion recorded in the same period in 2016.

The actual figure was also higher by P2.326 billion, or by 38.87%, from the projected net income for the period of P5.983 billion.

PPA in a statement said the positive performance was achieved due to the agency’s sound financial condition and strong Philippine economy.

PPA general manager Atty. Jay Daniel Santiago is also positive about the prospect of ending the agency’s fiscal year way above the red line despite forecasts of flat growth for 2017 due to concerns clouding the mining industry and the volatile foreign exchange rates.

“The performance of the PPA is way above expectation as we were able to eclipse almost all forecasted levels of the financial facet of the agency,” Santiago said.

“We expect an even bigger margin when our December figures start to come in. Not only for December but for the entire 2017 considering that we overshoot our targets by at least 10% every month until the end of November,” Santiago explained.

Total revenues during the 11-month period, meanwhile, grew by 6.71% to P13.846 billion from P12.976 billion collected in the same period in 2016.

Port revenue went up by 6.61% to P13.754 billion from P12.901 billion due primarily to the increase in volume of traffic at the ports as well as the adjustment in foreign exchange rates. The top five revenue earners are the National Capital Region South, Batangas, Davao, Bataan/Aurora, and Surigao.

Fund Management Income (FMI), on the other hand, increased by 22.92% to P91.99 million from P74.84 million for the same period in 2016, anchored on the purchase of P500 million in Treasury Bills, which, in effect, increased the volume of investments funds of the PPA. The ports authority said this facilitated the revamp in earnings and counterweighed the fluctuations in prevailing interest rates on special and high-yield savings deposits and economic uncertainties.

Total expenditures for the period under review fell by 4.73% to P5.537 billion from P5.811 billion in 2016, wherein operating expenses amounted to P5.398 billion, down 5% from P5.657 billion. Non-operating expenses likewise dropped by 9.9% to P139.02 million from P154.30 million.

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

“The agency will continue to work harder in 2018 to improve its revenues that will eventually translate to better and efficient ports and services for the public in the short and long terms,” he added.

Image courtesy of yodiyim at FreeDigitalPhotos.net