State-run Philippine Ports Authority (PPA) yesterday said its net income grew by 31 percent in 2019, considered as the highest profit in history.
However, this is challenging to sustain this year given the global concerns, PPA noted.
Latest data from the PPA showed its 2019 net income reached P7.280 billion, higher than the P5.553 billion posted in 2018. Last year’s profit was 47 percent higher than its target of P4.9 billion.
Jay Daniel Santiago, PPA general manager, attributed the strong financial performance of the agency to the various changes being implemented by the current administration.
“The changes range from manual to automated processes, installation of sophisticated, effective, and higher productivity port equipment, compliance with the world’s best port management practices, and most especially, the shift in the outlook of employees to public service with reliability, integrity, and accountability,” Santiago said.
Combining all the growth percentages in the first three years of the current administration, PPA’s net income is growing at an annual rate of 17 percent, the highest revenue growth percentage in the last 15 years.
Among the Port Management Offices that posted significant positive performance were South Harbor, Batangas, Davao, Surigao and Bataan/Aurora.
PPA said the positive deviation comes mainly from lay-up fees, roll-on roll-off fees, domestic dockage fee, pilotage, the utilization of the Vessel Traffic Monitoring System, and other income.
It said revenues climbed 5 percent to P18.352 billion in 2019, from P17.5 billion in 2018.
On the other hand, PPA said its total expenses dropped by at least 15.5 percent to P8.008 billion, compared with P9.476 billion in 2018, due to significant decreases in the repair and maintenance aspect related to land improvement and other financial expenses.
However, for this year, PPA is set to revisit its first-quarter performance targets in consideration of the current global concerns like the continuing threat of the COVID-19, the exit of Great Britain from the European Union, the West Philippine Sea, safety and environmental concerns, among others.
“Even with the continuing threat of global concerns, ‘business as usual’ is not an option but reducing the risk of these threats coupled with management anchored on best practices and public-service committed government personnel, our gateways connecting to the tourism and trade centers of the world, will remain competitive and responsive to any current global demands,” Santiago said.
Earlier, PPA said it expects a slowdown in cargo shipment this year, despite lifting restrictions on the cargoes coming from China, Hong Kong, Macau and Taiwan, due to the restriction on workers to help contain the spread of COVID-19.
Bulk of cargoes in the Philippines came from China. PPA said about 83 percent of all cargo to the Philippines is from China, Hong Kong, Macau and Taiwan, with 29 ships arrival a week either from China, Hong Kong or Macau.
