SUBIC BAY FREEPORT—The Subic Bay Metropolitan Authority (SBMA) posted a P687-million net income in the first six months of the year, marking an unprecedented 104-percent increase over its financial performance in the same period last year.
According to SBMA Chairman Roberto Garcia, unaudited figures from the agency’s Finance Group showed a hefty increase of P350 million in the agency’s January to June net income, compared to the P337 million recorded in 2014.
Garcia said the record income came on the heels of “record highs in financial performance for three consecutive years.”
“Revenues for the first semester were pretty good, as well,” he added, referring to a 15-percent revenue increase from last year’s level.
Garcia pointed out that the first semester saw a much improved business climate in the free port, which led to better bottom lines for the Subic agency and its locators.
He said this also paved the way for more start-up operations here and the employment of a much bigger Subic work force that is expected to hit the 100,000 mark by the end of this year.
Garcia said the increase in SBMA net income was bolstered by growing operating revenue from port services and regulatory fees, which increased by 29 percent and 24 percent, respectively, over the same period last year.
A 33-percent buildup in current assets, including a 38-percent increase in cash assets, and a 56-percent increase in miscellaneous assets, such as prepaid expenses, guaranty deposits and mobilization funds given in advance to contractors, also contributed substantially to the agency’s financial health.
Tight control over operating expenses also helped, Garcia added.
Meanwhile, SBMA’s earnings before interest, taxes, depreciation, and amortization (Ebitda) increased by 18 percent.
“This means that the agency is not only pursuing effective strategic initiatives, but is implementing them efficiently, as well,” Garcia added.
With this increase in profit, Garcia said the SBMA is “looking forward to a more positive outcome to further strengthen and sustain the agency’s financial turnaround.”
“We need to provide funds for our strategic plans, including the implementation of the long-overdue salary increases for SBMA employees and the procurement of badly needed equipment for security, maintenance and infrastructure-development work,” the SBMA official said.
Garcia said earlier that the SBMA has allocated a total of P40.6 million for various infrastructure-maintenance projects to be completed before the yearend.
Among the projects that SBMA has calendared are the repair of roads and bridges, improvement of drainage systems, park development, as well as installation of road signs.
Garcia said the projects are meant not only to improve tourism, but also “to communicate the underlying message of the SBMA’s good fiscal performance.”