The Philippine Ports Authority (PPA) posted a 15% increase in net income for the full year 2014 to P4.26 billion from P3.7 billion in 2013 despite the Manila port congestion.
The state-owned agency said this is also about 16% higher than the target of P3.67 billion.
Gross revenues likewise grew 13.5% to P12.57 billion from the 2013 figure of P11.07 billion.
Port revenues showed the biggest improvement in 2014 after reaching P12.46 billion, 24.7% higher than the P9.99 billion booked in 2013. These are also higher by 20% compared to the target port revenues of P10.41 billion.
However, fund management income (FMI), which comprises the other half of the PPA’s total gross revenues, declined 16% to P103.21 million from P122.5 million in 2013.
“The considerable increases in almost all aspects of the revenue generation process of the agency can be attributed primarily to the increase in traffic volume at the ports despite the congestion issue involving the Manila ports,” PPA general manager Atty. Juan C. Sta. Ana said.
5% rise in cargo volume
In 2014, PPA recorded a 5% increase in cargo volume from the ports it handles, expanding to 211.2 million metric tons from 201.91 mmt in 2013.
Container traffic also grew 3.95% to 5.43 million twenty-foot equivalent units (TEUs) from 5.23 million TEUs in 2013.
“The decrease in FMI, on the other hand, was due to the decline in interest rates on special and high-yield savings deposits and the termination of Bond Sinking Fund held by the Bureau of Treasury from which interest income is also derived,” Sta. Ana explained.
Total expenses, meanwhile, also posted a considerable hike of 9.68% in 2014 to P6.47 billion from only P5.89 billion spent for the entire 2013. Operating expenditures grew by P557 million or 8.88% to P6.83 billion from P6.27 billion in the previous year, arising from incurred accountable forms expense and amortization of intangible asset.
Non-operating expenses of the PPA during the year were recorded at P361.94 million, which is a slight increase by P13.85 million or 2.68% over the figure posted in 2013, primarily due to fluctuations in the foreign exchange.
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