CLARK Freeport Zone—The government-run Clark International Airport Corp. (CIAC) reported last June 28 that it has remitted a total of P176,739,971 this year as dividends to the Bureau of Treasury (BTr) that contributed to the national government’s funding requirements for Covid-19 responses.
“Despite the overwhelming challenges at the Clark aviation complex brought about by the pandemic, CIAC’s operational flexibility and fiscal discipline has generated an upward annual profit margin from 16 percent to 27 percent and thereafter to 46 percent from 2019 to 2021, and thus, our capacity to remit dividends,” CIAC President Aaron N. Aquino was quoted in a statement as saying.
From the total amount of dividends settled, P156.74 million was remitted on May 5 and P20 million last May 16; payments derived from revenues in managing the aviation complex.
Aquino added this year’s remittance is 35-percent higher than the P130.5-million contribution of the agency to the national treasury at the height of the Covid-19 outbreak in 2020.
“In the coming years, we hope to sustain and even increase CIAC’s modest contribution to the national government funds by improving the business climate here at the Clark aviation complex, encourage more foreign investments, and promote post-pandemic economic recovery, as well,” Aquino said.
Compliance
CIAC dividends remitted comply with Republic Act 7656, a law that directs all government-owned and -controlled corporations (GOCC) like CIAC to declare and remit at least 50 percent of their net earnings to the National Treasury.
CIAC is the agency tasked to develop the Clark Civil Aviation Complex (CCAC), home to the privately-run Clark International Airport, as well as the mixed-use business district Clark Global City and several locators in cargo and aviation-related businesses.
In its annual report, CIAC reported a net income for the calendar year ended 2021 of P255 million, which is 103-percent higher than the prior year’s financial results. The CCAC operator said the increase is mainly attributable to the higher overall income by P86 million and lower total expense by P46 million.
The CIAC added that service and business income increased by P44 million as a result of a dozen “new lease agreements perfected in 2021.” In addition, CIAC reported “an increase in gains by P36 million primarily from foreign currency trading and revaluation of dollar-denominated funds.”
CIAC said its cash and cash equivalents stood at P2.5 billion at yearend, reflecting a 23-percent decrease as compared to 2020 figures.