THE Philippine Ports Authority (PPA) recently registered a 13.25% decline in net income from January to October this year, resulting from low revenue generation and bloated expenses for the period.
During the first ten months of the year, net income totaled P1,961.32 million, P299.54 million short of the P2,260.86 million posted during the same period last year, but 30.52% higher than the P458.66 million target (see table).
Gross Revenue, Expenses and Net Income
| January to September 2003 (in million pesos) 2003 |
January to October 2002 | Inc. / (Dec.)Amount | % | |
| Gross Revenue | 4,416.03 | 4,428.83 | -12.80 | -0.29 |
| Port Revenue | 4,200.45 | 4,093.89 | 106.56 | 2.60 |
| FMI | 215.58 | 334.94 | -119.36 | -35.64 |
| Expenses | 2,454.71 | 2,167.97 | -286.74 | -13.23 |
| Operating | 2,233.90 | 1.920.65 | 313.25 | 16.31 |
| Non-operating | 220.81 | 247.32 | -26.51 | -10.72 |
| Net Income | 2,260.86 | -299.54 | -13.25 |
Net income for October alone fell 17.90% to P139.73 million compared with P170.19 million during the same month last year. The figure is, however, P34.56 million higher than the target of P105.17 million.
The 2.60% increase in port revenue (from P4,093.89 million to P4,200.45 million) from January to October was not enough to shore up gross revenues which dropped 0.29% for the comparable period last year.
From January to October, the authority earned P4,416.03 million, P12.80 million lower than the P4,428.83 million generated last year. This is mainly attributed to the 35.64% drop in Fund Management Income (FMI) to P119.36 million. “The lower level of investible funds and the 33.76% decline in interest income yield have caused this big drop,” PPA noted.
Still, the ten-month revenue was 0.66% (P29.147 million) higher than target. PPA said the increase was due to the difference between projected and actual foreign exchange rates (P52 against $1 and P53.79 versus $1).
“This positive deviation has cushioned the impact of the negative deviation between the actual and the projected non-dollar denominated revenue and operational traffic at the ports,” it noted.
The port authority said various measures implemented this year – including suspension of the approved five-year tariff increase on domestic traffic, and the implementation of the universal percentage government share on cargoes – reduced costs in transacting business at the ports.
Total revenue for October was P440.59 million, down 10.02% from P489.64 generated during the same month last year. The decline was arributed to the 9.25% decrease in port revenue amounting to P42.63 million. Also, the lower level of investible funds affected PPA’s FMI, which fell 22.46%. “Also affecting the revenue is the measure to peg government share in arrastre and stevedoring services,” the authority pointed out.
Total expenses posted a P286.74 million or 13.23% increase for the ten-month period.
