The Philippine Ports Authority (PPA) posted a 49-percent year-on-year increase in net income for January to March, saying it surpassed almost all targets for the period after reducing bureaucratic red tape and increasing efficiency at the ports.
Latest data showed that net income by the state-owned agency for the period reached P1.629 billion, compared with the P1.096 billion registered a year earlier. The figure eclipsed the P960 million target set for the first quarter by 70 percent.
In a statement, PPA General Manager Juan Sta. Ana explained that the strong financial performance is a result of the measures being undertaken by the agency to reduce red tape and increase efficiency at the ports.
“Simplifying requirements, reducing red tape and benchmarking Philippine port operations to world standards are giving huge positives to the agency,” Sta. Ana said.
“With the bigger savings and higher financial flexibility, we can continue to upgrade port facilities nationwide as well as attain better efficiency that will eventually translate to better service to the traveling public and trade facilitation,” he added.
Gross revenue jumped 32.5 percent to P2.790 billion from P2.105 billion achieved in the same period in 2014. The current figure is also higher by 17 percent, compared with the target of P2.393 billion.
Port revenue surged 34 percent to P2.770 billion from the P2.071 billion recorded a year earlier. Against a target of P2.374 billion, the actual port revenue stands 17 percent higher.
Fund management income, however, fell 42 percent to P19.78 million due to increased operational spending, resulting in less temporary idle cash available for use in short-term investments.
Total expenses for the period inched up 15 percent to P1.160 billion, although the figure fell short by 19 percent against the target of P1.009 billion.
Operating expenses reached P1.060 billion or 12.72 percent higher than the P940.58 million posted a year ago. Compared with the target, it is lower by 20.42 percent. The increase in operating expense was primarily due to the rise in the cost of administration and continued repair and maintenance projects.
Non-operating expenses such as financial charges and gain/loss on disposed assets increased by P31.81 million or 46.18 percent to P100.70 million. The improvement was due to guaranty fees on loans for the Batangas Port Development Project; interest expense on P2 billion corporate notes (domestic); and interest expense on foreign loans, specifically the Batangas Port Development Project.