Subic's Q1 earnings boosted by revenues, lower expenses

SUBIC BAY Freeport -   The Subic Bay Metropolitan Authority (SBMA) reported a 62-percent rise  in its net profit for the first quarter of the year.

According to SBMA chairman Roberto Garcia, the agency’s net income expanded from P464 million to P753 million, as revenues improved by 32 percent and expenses were reduced by 16 percent.

“Just like last year, the agency’s improved financial performance for the first quarter can be attributed to higher revenues and reduced expenses,” Garcia said, referring to SBMA’s 2012 net profit of P811 million, which was the highest ever in the agency’s 20-year history.

Garcia added that SBMA’s revenues for the quarter came from its seaport operations, which improved revenues by 58 percent and its regulatory income, which grew by 118 percent.

He added that additional revenue increases were gained from tourism activities, as well as new land and building leases, which advanced by 22 percent and 16 percent, respectively.

Contributing equally to SBMA’s better financial performance for the same period was a corresponding decrease in its various expenses such as repair and maintenance by 85 percent, and power and water consumption by 59 percent, as a result of the agency’s conservation programs.

“But what is truly noteworthy is that SBMA’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased substantially by 141 percent.  This means the Agency is not only pursuing effective strategic initiatives but is implementing them efficiently as well,” Garcia said.

For 2012, SBMA recorded an improvement of 91 percent in its EBITDA, as its operating profit rose from P328 million in 2011 to P628 million for the year.

“Moving forward, we hope to strengthen the agency’s financial turnaround further to provide funds for our strategic plans, including the implementation of long overdue salary increases of SBMA employees and the procurement of badly-needed equipment for security, maintenance and infrastructure development work,” the SBMA chairman said.