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SBMA posts record income on cost-cuts, higher revenues

Photo by Lourdes Molina-Fernandez means BUSINESS

MANILA - The Subic Bay Metropolitan Authority (SBMA) on Monday said it reversed the loss incurred in 2011 and posted a record-high profit last year.

In a statement, the state-run operator of the Subic Bay Freeport Zone said it earned P789 million in 2012, after suffering a loss of P1.2 billion the previous year.

Last year’s profit was the highest in SBMA’s 20 years of operations.

“The turnaround was due to increased revenues, reduced operating expenses and a favorable exchange rate,” said SBMA chairman and administrator Roberto V. Garcia.

Revenues rose 16 percent year-on-year on the back of additional collections from new big projects such as the Vale ore transshipment and the second phase of the new container port.

Additional revenues were also generated from higher admission fees on imports and new fees defraying municipal expenses that had been subsidized.

The SBMA slashed its operating expenses by 7 percent, as its comprehensive austerity program cut salaries by 7 percent.

Expenses on repairs and maintenance were trimmed by 46 percent, and advertising spend was 35-percent lower.

These measures helped earnings before interest, taxes and depreciation (EBITDA) to climb to P629 million or almost double the P329 million in 2011.

The “favorable” exchange rate, meanwhile, brought gains in unrealized foreign exchange worth P1.1 billion, a turnaround from the P566-million loss in 2011.

 “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,” the investment promotion agency said.