17 October 2014

SBMA net operating income up by 66%

The Subic Bay Metropolitan Authority (SBMA) is confident of breaking its record operating profit established last year, as the agency’s net operating income increased by 66 percent as of last August.

SBMA chairman Roberto Garcia announced this during the flag ceremony early this week, adding that the agency’s earnings before interest, tax, depreciation and amortization (EBITDA) or net operating income this year would likely surpass last year’s level.

“The performance of the agency continues to be very strong. As of August, our revenues are up by 22 per cent from the same period last year and expenses are down by 16 per cent,” Garcia announced.

“The good news is that our operating revenue, which is really the measure of the efficiency and effectiveness of the strategic initiative that we have launched, has gone up, raising our net operating income by 66 percent,” he added.

Garcia explained that the 66 per cent increase in net operating income was derived from the P385 million increase this year on top of last year’s P580 million.

He further said that as of August last year, operating revenue was at P1.3 billion, and less operating expenses worth P720 million resulted in a P580-million net operating income.

“Meanwhile, this year’s operating revenue increased by 21 per cent to P1.57 billion, and minus the operating expenses worth P607 million, or a 16 per cent decrease, would result to a P965-million net operating income, or 66 percent more spending power and fiscal flexibility in our financial management efforts,” Garcia said.

In 2013, the SBMA shattered its all-time record after posting P1.2 billion in net profit, along with the highest gross revenue of P2.1 billion and the highest EBITDA of P992 million in the 21-year history of the Subic agency.

Garcia said the SBMA is now further improving its financial condition to develop facilities here and attract more investments in the Subic Bay Freeport Zone, as well as improving employment security of the agency’s workers. (RFD/MPD-SBMA)