The Philippine Ports Authority (PPA) is revising upward its revenue target for the year by 7.5 percent after it posted a 32 percent increase in net income in January to May 2017.
The ports regulator reported a net income of P3.96 billion in the five months to May from P3 billion a year earlier.
According to the PPA, the corporate operating budget last year was P14.298 billion. An additional 7.5 percent would result in about P15.37 billion for 2017.
The guidance was based on expectations of 7.5 percent gross domestic product growth for the year, PPA General Manager Jay Daniel Santiago said in a statement.
“The intention is to set a more realistic revenue commitment taking into account the development in the economy during the first half of the year,” Santiago said.
Last February, the PPA downgraded its revenue forecast to flat at best due to a weakening peso against the dollar. The transfer of control of several high-yielding ports to local governments and freeport zones were also taken into account as well the issues hounding the mining industry at that time.
In the first five months of the year, the PPA generated P6.050 billion in earnings, up 11.64 percent from P5.419 billion year-on-year.
According to the PPA, heightened business activity at the ports and the impact of the foreign exchange on dollar-dominated tariffs lifted its earnings for the period.
Its fund management income declined by 6.38 percent to P34.21 million from P36.54 million due to fluctuations in the interest rates on special and high-yield savings deposits.
Total expenditures, covering both operating and non-operating expenses, amounted to P2.084 billion, of which P2.022 billion was disbursed as operating expenditures and P62.61 million a non-operating expenditures, the PPA reported.
Non-operating expenses rose by 15.75 percent to P62.61 million from P54.09 million to higher financial expenses, particularly interest expense on foreign loans and other expenses.