THE Philippine Ports Authority (PPA) registered another double-digit growth, with its target net income enjoying an almost one-third leap in the first five months of 2017 due to heightened shipping and trade at the ports.
Data from the port regulator showed the PPA’s net income from January to May this year reached P3.97 billion, a 32-percent increase from the P3 billion it posted in the same period last year.
This is also a third higher than its P3-billion target for the period.
In the same comparative periods, the port regulator saw its revenues rising by 12 percent to P6.05 billion, from P5.42 billion, as a result of increased business activity at the ports paired with the impact of foreign exchange on dollar-denominated tariff. However, the fund-management income declined 6.38 percent to P34.21 million due to the fluctuations in interest rates on special and high-yield savings deposits.
This revenue stream is a passive income on its investments in Treasury bonds and other short-term investments.
Another factor contributing to the increase in profits was the drop in its total expenses by 13.63 percent, from the previous year’s P2.41 billion to a mere P2.08 billion.
Such a decline in spending was due to its efforts to downsize costs, including charges for repair and maintenance, and dredging projects.
Port operations in the Philippines continued to be robust, thanks to sustained solid economic activities at the ports, amplified by the strong domestic consumption and a generally positive business atmosphere.
The agency plans to allocate a huge portion of its financial resources for its port development and maintenance program, such as port infrastructure facilities construction, and repairs and maintenance nationwide.
The port development and maintenance projects are in line with the agency’s goal of improving the capacity and efficiency of ports, consistent with the government’s development agenda and strategic objectives.