02 March 2015

SBMA 2014 record income up 40%

For the third consecutive year, the Subic Bay Metropolitan Authority (SBMA) hit new record highs in its 2014 financial performance, as it scored a net income of P1.556 billion vs the 2013 income ofP1.11 billion, a substantial increase of 40%.

“Revenues from port operations, tourism and industrial commercial leases rose to P2.442 billion or 21% vs 2013 figures, while EBITDA or operating profit hit P1.391 billion or 51% over the previous year,” SBMA Chairman and Administrator Roberto V. Garcia announced recently.

With the port congestion in Manila, many importers shifted to Subic, causing port revenues to hit P909 million or an increase of 45%. Significantly, containerized volumes jumped to 77,000 TEUs or an increase of 105%. Locator export volumes likewise increased to U$2.3 billion or a 59% increase from the previous year.

Tourism likewise registered substantial revenue gains with a substantial 61% jump driven by a 12% hike in tourist traffic. MICE events (Meetings, Incentives, Conventions and Exhibitions) chalked up an increase of 150% while sports events rose 75% to make Subic Bay the number one tourist destination in Central Luzon according to DOT records.

Industrial and commercial leases likewise hit P1.050 billion, up 13% from previous years, as more businesses flocked to the Freeport. These and other expansion projects of existing locators caused jobs to increase from 89,584 in 2013 to 96,958 in 2014, providing 7,374 new jobs or an increase of 8%.

Reflecting the Agency’s robust growth on all fronts are the cash collections of the Bureau of Internal Revenue’s P1.8 billion and the Bureau of Customs’ P15.290 billion, which improved by 27% and 36% respectively in 2014.

Lastly, the 5% tax collected from locators in the Freeport rose to P497 million, or a 35% increase over 2013. SBMA remitted this amount with P199 million going to the eight local government units surrounding the Freeport, while P298 million was remitted to the National Government Treasury. The total contribution of SBMA to the national economy therefore amounted to P17.638 billion.

According to Garcia, the agency’s sterling three-year record performance could be attributed to good governance, the implementation of its strategic initiatives, and the hard work of the agency’s management and employees. (KMF/CorCom-SBMA)