Ports authority net profit rises on cost controls, fund income

THE Philippine Ports Authority (PPA) said net profit rose 20.5%, in the seven months to July to P5.58 billion as the government-owned-and-controlled corporation (GOCC) kept costs in line and posted fund management gains.

The PPA said that its “stronger-than-expected” financial performance exceeds by 45.6% its target of P3.83 billion for the period.

PPA General Manager Jay Daniel R. Santiago said growth in shipping and trade at the country’s ports continue to buoy the performance of the PPA.

“PPA’s financial performance sustained top-line and bottom-line growth as total revenue edged up while Corporate Expenditures dipped due to sound fiscal management resulted to a substantial improvement of net income for the period. The sustained positive outcome in shipping and trade at the ports, resulting from the country’s upbeat economic and business atmosphere and heightened domestic demand, continue to spark progression in PPA’s operational and financial performance,” Mr. Santiago said in a statement.

Revenue increased by 7.37% to P8.68 billion, beating the target by 5.04%. Revenue was dampened by the performances of lay-up fees, which dropped by 77.5%, and storage fees, which fell 8.5%.

Remittances from port operators International Container Terminal Services, Inc., and Asian Terminals, Inc. grew by 12.81% and 11.35% respectively.

Also posting increases were revenue from cargo handling fees (12.04%) and port dues (11.15%).

Fund management income, derived from shortterm investments, rose 34.73% to P60.75 million, beating the target by 89.3%.

Total expenditure amounted to P3.09 billion, down nearly 10%. Operating expenses totaled P3.03 billion, down 9.9%, amid a 62.45% decline in dredging costs. —