PPA net profit rises nearly 32% on cargo volume growth; imports rise

Posted on July 07, 2017

THE Philippine Ports Authority (PPA) said net profit rose 31.90% in the five months to May of 2017 as cargo volume grew 9.36% during the period.

PPA said net profit hit P3.966 billion during the period, against P3 billion posted a year earlier due to the increases in roll-on, roll-off (Ro-Ro) fees, berthing fees and vessel lay-up fees.

Revenue during the period rose 11.63% to P6.05 billion.

“The positive deviation in revenue from last year’s performance is primarily the result of heightened business activity at the ports coupled with the impact of foreign exchange on dollar-denominated tariffs,” PPA said.

Fund Management Income (FMI), however, declined by 6.38% to P34.21 million due to fluctuations in interest rates for special and/or high-yield savings deposits.

FMI represents passive income on investments in Treasury bonds and other temporary or short-term investments placed with PPA’s depository banks.

Total assets rose 0.28% to P122.09 billion, while net worth at the end of May was P113.89 billion, up 1.81%.

PPA noted that it saw continued robust port operations as of end-May with cargo volume rising to 8.864 million metric tons (MMT).

“Increased trade volume was propelled by the sustained robust domestic consumption and improved investment climate, boosting business activities at the country’s gateways,” the state agency said.

Foreign volumes during the period rose by 9.43%, accounting for 5.281 MMT, while domestic cargo saw a rise of 9.27% to 3.582 MMT.

PPA said for the period, export volume was up 2.34%, while import volume expanded 13.9%.

“The foreign import component garnered the largest increase owing primarily to strong private consumption. Exports slightly rose despite weakened regional and global demand as new markets were exploited for the country’s export goods,” it added.

Container volume, PPA said, totaled 351,112 million 20-foot equivalent units (TEUs), up 13.71%, with domestic boxes growing 15.17% to 156,056 TEUs while foreign boxes rose 12.73% to 195,056 TEUs.

Passenger traffic, on the other hand, maintained its upward trend with a 2.60% increase, which it said was steered by the amplified volume of travelers during the observance of the Holy Week in addition to the continuous reliance by the sea-traveling public on Ro-Ro vessels, fast craft, and motorized bancas as modes of transportation for domestic interisland connectivity.

Vessel calls meanwhile fell by 0.58% to 1,064, with domestic vessels accounting for most of the decline.

“The reduced vessel traffic arose from successive cancellation of trips, mostly of motorized bancas and fast craft, due to the impact of the strong southwest monsoon; strong undercurrent water conditions; gale warnings; and routine maintenance of passenger vessels which limited the number of trips,” it said.

PPA earlier said it will prioritize rehabilitation and development of more ports this year in a bid to further push interisland connectivity via Ro-Ro ferry services.

In particular, the agency will rehabilitate the Iloilo port and Abra de Ilog in Mindoro, expand the port in General Santos City, and pursue the ongoing rehabilitation and construction of a passenger terminal building in Cagayan de Oro. -- Imee Charlee C. Delavin