The Philippine Ports Authority (PPA)’s net income in the first five months of 2014 slipped by 13 percent from a year earlier, pulled down mainly by a hefty drop in its investment income.
According to PPA data, net income in the five months to May fell to P2.303 billion from P2.655 billion in the comparable period last year due mainly to a 31 percent drop in its Fund Management Income (FMI).
Gross revenues dipped 1.08 percent to P4.616 billion as against the year-ago level of P4.666 billion. Of this amount, port revenues totaled P4.586 billion, or 25 percent higher than the previous year’s P3.670 billion.
Revenues from the Port District Offices totaled P4.583 billion, accounting for 99.94 percent of income. Its head office registered revenues of P2.81 million or 0.06 percent of the total, while earnings from private ports accounted for the rest of the revenue.
The PPA said FMI in the first five months declined by 31 percent to P30.61 million from P44.20 million a year before due to increased operational spending, resulting in lesser funds available for short-term investments.
It said expenses went up by 15 percent to P2.313 billion during the period. Of this amount, operating expenses increased by 14.20 percent to 2.195 billion compared to the P1.922 billion registered in the same period last year due to increased costs.
Compared to its financial targets for the period, however, the results for the first five months exceeded expectations. Net income was 67.29 percent more than the target of P1.376 billion, while gross revenue topped the target of P4.149 billion by 10.48 percent.
FMI was also 0.85 percent or P2.86 million higher than targeted.