The Subic Bay Metropolitan Authority (SBMA) has announced that the Agency has achieved the highest profit in its 20 year history.
Based on preliminary figures presented at the SBMA’s Strategic Planning conference last week, the Agency posted a record profit of P789 million in 2012. This is a drastic turnaround from the P1.2 billion loss in 2011.
Chairman & Administrator Roberto V. Garcia said that the turnaround was due to increased revenues, reduced operating expenses and a favorable exchange rate.
According to Garcia, the revenue increase of 16% versus last year was brought about by new major projects in seaport operations such as the Vale ore transshipment project and the start of commercial operations of the Phase 2 new container port.
“Coupled with an aggressive collection campaign on existing accounts, new revenue streams were created through increased admission fees on importations and the imposition of fees to defray municipal expenses that were previously subsidized,” he added.
Operating expenses decreased by 7% vs 2011 as the Agency implemented a comprehensive austerity program. Salaries dropped 7% as a freeze hiring policy was implemented and manpower count decreased. Repairs and maintenance likewise decreased by 46% and advertising was slashed by 35% vs 2011. As a result earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million a 91% increase.
Due mainly to favorable exchange rates, unrealized foreign exchange posted a gain of P1.1 Billion from the previous years forex loss of P566 million.
The 2013 Strategic Planning session focused on developing new initiatives to sustain and improve further SBMA’s financial position in the coming years.
Garcia said, new strategic initiatives concentrating on the seaport, airport, tourism, and commercial and industrial leases were formulated, targets were set and detailed plans of action were submitted and approved by the SBMA Board.
“SBMA wanted to ensure it was ready and able to take advantage of the present upsurge in the country’s strong economic performance especially in attracting foreign investments,” he concluded.