The Philippine Ports Authority (PPA) posted a 4% decline in net income for the first quarter of 2018 to P2.259 billion from P2.364 billion in the same period last year due to high expenses, particularly in repair and maintenance and dredging.
Total revenues, on the other hand, grew 9% to P3.783 billion from P3.476 billion in 2017, anchored on the strong performance of the government’s share in storage fees, which went up by 50%, and layup fees, higher by 183%.
Fund management income also rose 26.6% to P30.41 million from P24.02 million.
Total expenses for the period soared 37.03% to P1.523 billion from P1.112 billion last year. Cash and non-cash expenses were higher by 46.56% (P740.61 million) and 29.10% (P783.35 million), respectively. Dredging expenses, in particular, went up by 644%, while repair and maintenance recorded an increase of 117%.
PPA is accelerating its port infrastructure projects after port revenues posted strong figures in the first three months of the year.
“Dredging as well as repair and maintenance costs comprise almost entirely our expenses for the period, all aimed at making our ports efficient and more responsive to the demands of times,” Santiago said.
“Once completed, these projects will definitely boost our revenues and eventually our income all anchored on faster turnaround of vessels and cargoes in our ports,” Santiago added. “We have been injecting so much investment in our ports in support of the Build-Build-Build program of the Duterte administration.”
Among ports being improved are those in Puerto Princesa, Eastern Leyte, Ilocos Norte, Occidental Mindoro, Batangas, and Ozamiz.
Locally funded port development projects include 35 projects in Luzon, of which seven have been completed, 19 are ongoing and another 19 projects are for procurement. In the Visayas, there are 19 port projects wherein three have been finished, eight are ongoing, and eight are for procurement; while in Mindanao, there are 40, broken down into five delivered, 21 ongoing, and 14 under procurement.
This year, the PPA is optimistic it can hit its target gross income of P16.18 billion as some of the port development projects are set to go online in 2018 to accommodate the demands of increasing economic activity.
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