The Philippine Ports Authority (PPA) recorded a modest increase in net income in the first 10 months of 2018, owing to higher revenues boosted by an increase in cargo and vessel traffic, and adjustments in tariff rates.
In its 10-month performance report, PPA said net income from January to October 2018 reached P7.734 billion, 0.28% higher than the P7.712 billion earned in the same period in 2017. The net income was 72.09% higher than the P4.494 billion target for the period.
Revenues for the period went up 11.31% to P14.069 billion from P12.64 billion last year. Of the total, the highest contributors were fees from port operators International Container Terminal Service, Inc., and Asian Terminals Inc., as well as wharfage dues and storage fees.
PPA said revenue growth was driven by the increase in cargo and vessel traffic, tariff rate adjustments, and the favorable impact of foreign exchange rate on dollar-denominated tariff. The increase in wharfage and berthing fees was mainly generated from the port management offices (PMOs) of Surigao and Batangas. The top five revenue earners were the PMOs of National Capital Region-South, Batangas, Davao, Bataan/Aurora, and Surigao.
Expenses during the period increased 28.56% to P6.336 billion from last year’s P4.928 billion. Cash and non-cash expenses both went up by 35.07% (P1.009 billion) and 19.44% (P398.68 million), respectively. Higher expenditure on rehabilitation and maintenance, land improvements, and dredging was recorded during the period in view of the ongoing rehabilitation, maintenance and development of port facilities nationwide, along with improvements in navigational safety.
PPA earlier said it was optimistic of hitting its target gross income of P16.18 billion as some of its port development projects are set to go online in 2018 to accommodate the demands of increasing economic activity.
