PPA earnings up 50% in Q1

MANILA, Philippines - State-run Philippine Ports Authority (PPA) booked a 50 percent increase in earnings in the first quarter of the year amid the growing volume of cargo handled by ports nationwide.

PPA general manager Juan Sta. Ana said the agency’s net income amounted to P1.63 billion from January to March this year or P540 million higher compared to P1.09 billion in the same period last year.

Sta. Ana said the earnings in the first quarter exceeded the agency’s income target of P960 million and is a testament that the measures being undertaken to reduce red tape and increase efficiency at the ports are effective.

 â€œSimplifying requirements, reducing red tape and benchmarking Philippine port operations to world standards are giving huge positives to the agency,” he stressed.

Data showed that PPA’s gross revenues grew 32.5 percent to P2.79 billion in the first quarter from P2.1 billion in the same period last year. The amount exceeded the agency’s target of P2.39 billion by 17 percent.

Port revenues alone surged 34 percent to P2.77 billion from P2.07 billion.

The agency’s fund management income, however, fell 42 percent to P19.78 million due to increased operational spending resulting in lesser temporary idle cash available for use in short-term investments.

Total expenses rose 15 percent to P1.16 billion as operating expenses inched up by P1.06 billion primarily due to the increase in the cost of administration and continued repair and maintenance projects.

Non-operating expenses such as financial charges and gain or loss on of disposed assets grew 46.2 percent to P100.70 million due to guaranty fees on loans for the Batangas Port development project; interest expense on the P2-billion corporate notes; and interest expense on foreign loans, specificially the Batangas Port development project.

“With the bigger savings and higher financial flexibility, we can continue to upgrade port facilities nationwide as well as better efficiency that will eventually translate to better service to the travelling public and trade facilitation,” Sta. Ana added.

Cargo volume inched up close to five percent to 44.94 million metric tons from January to March compared to 42.942 million metric tons booked in the same period last year.

Sta. Ana said the percentage of increase could have been higher if not for the day-time truck ban imposed by the city government of Manila that effectively constricts the Manila Ports to handle more cargo.

It maybe recalled that in February, Manila imposed a day-time truck ban to ease vehicular traffic within the city. The local government only allows trucks to traverse city roads starting at 9 p.m. on top of the limited window for some truckers starting at 10 a.m. to 3 p.m.