SBMA posts new profit record of P1.2-billion

The Subic Bay Metropolitan Authority (SBMA) has shattered its 2012 net profit record of P824 million when based on preliminary reports, it posted last year a net profit of P1.2 billion, the agency’s highest in its entire 21-year history. SBMA 2013 gross revenues of P2.09 billion and EBITDA of P992 million likewise posted the highest levels in the Agency's history.

Comparatively, the gross revenue of P2.1 billion that the agency generated in 2013 was 26.6 percent higher than the gross revenue of P1.6 billion in 2012. The growth in revenue came mainly from Seaport operations of P588 million an increase of 46% over 2013 and Regulatory operations of PP404 million which increased by a hefty 82% over the previous year.

While net income was buoyed by favorable exchange rates, Chairman Roberto Garcia noted that SBMA’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased significantly by 52.2 percent from P652 million in 2012 to P992 million in 2013. This is the true test of the Agency's effective strategic initiatives and the efficiency in the execution of such initiatives.

“This has made 2013 another banner year in succession for SBMA, and we are pleased to report that our financial performance continues to improve substantially while investments also significantly exceeded the 2012 level,” Garcia said. Approved investments in 2012 of P3 billion spurted to P24.7 billion in 2013 or an increase of 723%. This will provide over 10,000 jobs over the next few years as these projects get implemented.

Through the continuing austerity program and effective cost control measures, the Agency was also able to minimize the rise in operating expenses to 10%, thereby increasing its net income substantially.

To cap off 2013, SBMA was able to secure final approval of its USD27 million loan refinancing package. Garcia said that this will strengthen SBMA's balance sheet and will allow the Agency to invest in much needed capital expenditures to improve security and vital Freeport infrastructure. To this end, SBMA has programmed P617 million in capital spending for 2014.

Garcia is set to deliver the his State of the Freeport Address (SOFA) before the Freeport community and the Subic Bay Freeport Chamber of Commerce Inc. (SBFCCI) on February 27 at the Subic Bay Exhibition and Convention Center (SBECC). (RFD/MPD-SBMA)

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SBMA earned P1.07 billion in 2013

The Subic Bay Metropolitan Authority (SBMA), which manages the Subic Bay Freeport Zone, continues to improve its financial performance, keeping its financial books in the black for the second year straight, recording more than P1 billion in net income, and increasing the level of investments by eightfold last year.

In a preliminary accomplishment report released last week, the agency said that as of November 2013, it has raked in a total of P1.85 billion in revenue, which represents a 25-percent increase over the P1.48-billion total recorded in November 2012.

This, minus expenses and taxes, left the SBMA with P1.078 billion in net income, a 100-percent increase over the P538-million net income in November 2012 that came after a P1.2-billion loss in 2011.

SBMA Chairman Roberto Garcia said his administration delivered the financial turnaround beginning 2012 when it drastically reduced operating expenses that resulted in a 91-percent increase in earnings before interest, taxes and depreciation.

“2013 was another banner year for the SBMA—particularly as to financial performance, investment promotion and other key performance areas,” the SBMA report said.

“We are pleased to report that based on the numbers as of November 2013 and as projected, the financial performance of the SBMA continued to improve substantially and investments significantly exceeded 2012 levels,” the report added.

The SBMA added in its report that its actual 2013 revenue and net income broke the agency’s all-time record because figures posted as of November 2013 “are actually higher than levels for the entire year of 2012.”

The report said the administration’s sound fiscal management was further proven by the fact that the agency paid all three foreign loan amortizations for 2013 and managed to secure approval by the Bangko Sentral ng Pilipinas last December 16 for the restructuring of SBMA’s $27-million loan.

The restructuring is expected to reduce interest expense and allow the agency to invest in badly needed infrastructure, thus strengthening further the fiscal position of the Subic authority.

“These strides in the financial stability and viability of SBMA complements the substantial 8.9 percent increase in Bureau of Internal Revenue collections from roughly P1.278 billion in 2012 to approximately P1.392 billion in 2013, and the country-wide best Bureau of Customs collection of approximately P10.840 billion in 2013, a staggering 71-percent increase from roughly P6.329 billion in 2012,” the SBMA said.

Meanwhile, in terms of investment promotion the SBMA reported that its actual performance has exceeded 2013 projections.

“By the end of 2012, the agency predicted that investment promotion in 2013 would increase fivefold. The agency did not increase investments in the Subic Bay Freeport Zone fivefold in 2013—it increased investments eightfold,” the SBMA said in its report.

It added that from the P3-billion year-end record in 2012, fresh investment commitments in tourism, export industries and other businesses increased to more than P24 billion by the end of the third quarter of 2013.

To further enhance investment promotion and revenue generation in the Subic Bay Freeport, the SBMA also said it has negotiated for the expansion of the free port in neighboring communities.

The additional areas for development included 650 hectares in the municipality of Subic, which is ideal for shipbuilding and ship repair, and 10,000 hectares in San Antonio, Zambales, which is ideal for tourism and resort development. (Henry Empeño, Business Mirror)

http://businessmirror.com.ph/index.php/en/news/economy/26361-sbma-earned-p1-07-billion-in-2013

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Subic collections up

SUBIC BAY FREEPORT—The Bureau of Customs registered revenue collections of P11.2 billion in 2013, up 77 percent from P6.3.billion in 2012, driven by strong duties and tax take.

Port of Subic District collector Arnulfo Marcos said tax collections in the last quarter of 2013 rose 110 percent to P3.30 billion from P1.57 billion year-on-year.

Marcos said the P11.2-billion collections 2013 exceeded the Freeport’s target of P6.15 billion by 83 percent.

He said July registered the highest monthly tax collection with P1.02 billion, or up 220 percent from P321 million on year, followed by December with P1.10 billion, up 149 percent from P442 million on year.

Marcos attributed the increased collections to the reforms institutionalized by his predecessors at the Port of Subic and the recent reconfiguration program and reshuffle of key frontline officials. (Cecille Garcia, Manila Standard)

http://manilastandardtoday.com/2014/01/10/subic-collections-up/

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Subic Freeport, Nayong Pilipino turning in profits

CLARK FREEPORT—The financial viability of the Subic Bay Metropolitan Authority (SBMA) and the Nayong Pilipino sa Clark Expo (Nayong Pilipino) appears to have turned for the better lately in spite of prevailing global economic uncertainties brought about by slow-downs in First World markets (the US and Europe) and political turmoil besetting the Middle East.

SBMA Chairman and Administrator Roberto V. Garcia reported that the country’s first free-port zone sustained a profitable operation this year that began in 2012 ending a losing streak since it opened for business in 1992.

But due to increased expenditures, this year’s SBMA gains would somewhat be lower than last year’s P800 million on the back of projected year-round total operating revenues of P1.476 billion. In 2012 operating revenues reached P1.151 billion.

On the other hand, the losing Nayong Pilipino also began posting moderate gains beginning in 2012, when gross revenues soared to P24 million.

Nayong Pilipino trustee and Executive Director lawyer Apolonio B. Anota Jr. said the facility is now stronger financially both in gross and net revenues.

Anota traced the turnaround in the cultural-cum-resort venture of Nayong Pilipino in this free port to increased visitor arrivals in the past 20 months from a measly annual number of 20,000 to 300,000 as a result of improved management and introduction of new attractions.

Both Garcia and Anota were guests in Friday’s double media forum “Balitaan,” hosted weekly by the Capampangan in Media Inc. at its headquarters at the Bale Balita (House of News) here.

Garcia reported that locators’ committed investments in the SBMA this year could hit P24.8 billion, a hefty jump from the preceding year’s P2.3 billion.

The SBMA’s current 1,000 locators, which provide some 89.921-percent employment opportunities, are forecast to register a 33-percent dip in export receipts to $650 million this year from $963 million the previous year due to the global economic slowdown.

But there’s excitement in the Subic free port, Garcia said, brought about by the rising number of prospective locators, as well as those that have actually implemented their plans, led by the rising P20-billion complex of Resom Resort City Subic and the expansion of the floating terminal of Vale Holding Shipping Pte. Ltd., which services major iron-ore suppliers to China.

The SBMA, together with this free port, has been picked to host the senior ministerial meeting of next year’s scheduled Apec summit the Philippines is hosting, which could trigger the realization of the planned Subic-Clark business corridor, Garcia said.

As envisioned, the land on both sides of the Subic-Clark-Tarlac Expressway connecting Clark and Subic is to be developed into commercial-industrial areas to attract more local and foreign business locators.

“We’re also looking forward to generating fresh revenues from the prospective transfer of some of the operation of the Philippine Air Force to Subic,” Garcia said.

With its improving financial muscle, Garcia expressed optimism that the free port could finally pursue the programmed upgrading of its port and other facilities, as well as an increase in the compensation of SBMA personnel.

Sources said that the SBMA management has submitted to the Office of the President its proposed P65-million wage-hike package for SBMA employees. (Ashley Manabat, Business Mirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/22632-subic-freeport-nayong-pilipino-turning-in-profits

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Subic’s customs collections rise 58% to P5b

The Bureau of Customs here said revenue collections in the first half grew by more than 50 percent year-on-year and exceeded the goal for the period.

Port of Subic customs collector Adelina Molina said the Freeport zone collected P5 billion in customs duties and taxes in the January-June period, or 58 percent higher than the P3.1 billion posted in the same period last year.

The agency also surpassed its first-half target of P3.03 billion by P1.09 billion, or 62.6 percent.

Molina said BoC-Subic showed strong collection performance in the months of April and June, when it achieved record-high monthly collections of P1.09 billion and P1.05 billion, respectively.

The strong April and June collection took the Freeport’s second-quarter tally to P3.09 billion, or 85.5 percent more than the P1.42 billion it collected in the second quarter last year. The figure also represented a 95.5-percent increase over the P1.58-billion quarterly revenue target.

Data from the BoC’s statistics division showed collection in the first quarter grew 26.5 percent to P1.8 billion from a year ago. It also surpassed the target collection of P1.45 billion for the period by 26.5 percent.

Molina attributed the collection performance to the ‘team effort’ shown by different departments of her office as well as close cooperation with Freeport authorities.

Customs Commissioner Ruffy Biazon made a surprise visit recently to the Port of Subic to personally commend Molina for achieving an unprecedented collection performance for the month of April.

Biazon showed his appreciation and support to the team of Molina, including deputy collectors Ernelito Aquino for assessment, Andrew Fernandez for operations, Irineo Onia Jr. for administration, BoC law enforcement head Elpidio Manuel, Customs intelligence and investigation service chief Jose Du.

Subic Bay Metropolitan Authority chairman Roberto Garcia cited Molina for a “job well-done” not just for the high collection performance but also for strict enforcement of its mandate to curb smuggling. (Cecille Garcia, Manila Standard Today)

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SBMA’s Q1 net profit expands by 62%

The Subic Bay Metropolitan Authority (SBMA) recently reported a healthy increase of 62 percent in its net profit for the first quarter of the current year, as compared to its performance for the same period in 2012.

According to SBMA chairman Roberto Garcia, the agency’s net income expanded from P464 million to P753 million, as revenue improved by 32 percent and expenses were reduced by 16 percent.

“Just like last year, the agency’s improved financial performance for the first quarter can be attributed to higher revenues and reduced expenses,” Garcia noted, referring to SBMA’s 2012 net profit of P811 million, which was the highest ever in the agency’s 20-year history.

According to Garcia, SBMA’s revenues for the quarter came from its seaport operations, which improved revenues by 58 percent and its regulatory income, which grew by 118 percent.

He added that additional revenue increases were gained from tourism activities, as well as new land and building leases, which advanced by 22 percent and 16 percent, respectively.

Contributing equally to SBMA’s better financial performance for the same period was a corresponding decrease in its various expenses such as repair and maintenance by 85 percent, and power and water consumption by 59 percent, as a result of the agency’s conservation programs.

“But what is truly noteworthy is that SBMA’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased substantially by 141 percent. This means the Agency is not only pursuing effective strategic initiatives but is implementing them efficiently as well," Garcia said.

For 2012, SBMA recorded an improvement of 91 percent in its EBITDA, as its operating profit rose from P328 million in 2011 to P628 million for the year.

“Moving forward, we hope to strengthen the agency’s financial turnaround further to provide funds for our strategic plans, including the implementation of long overdue salary increases of SBMA employees and the procurement of badly needed equipment for security, maintenance and infrastructure development work,” the SBMA chairman said. (RFD/MPD-SBMA)

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Subic Port collection above target

Data received from the Financial Service, Statistics Division of the Bureau of Customs showed that the Port of Subic collected the total amount of P1,091, 625, 587 for the month of April.

This is P561,980, 587 over its assigned target of P529,645.000, or a positive deviation of 106.1 percent.

Customs Commissioner Ruffy Biazon, upon learning of the above target collection, made a surprise visit yesterday to the Port of Subic to personally congratulate District Collector Atty. Adelina SE Molina for achieving an unprecedented collection performance.

The gesture of the Commissioner served as a motivation to the Port to further improve its revenue collection drive and the personnel has vowed to contribute towards the attainment of this vision.

Commissioner Biazon has just attended the 18th Meeting of the ASEAN Coordinating Committee on Customs at Widus Hotel, Clarkfield, Angeles, Pampanga and decided to proceed to the nearby Port of Subic to show his appreciation and support to the team of District Collector Atty. Molina, her Deputy Collectors, Atty. Ernelito G. Aquino for Assessment, Atty. Andrew Fernandez for Operations, Atty. Irineo Onia Jr. for Administration as well as to the entire personnel of the Port for achieving this rare feat.

Biazon stressed the role of the various Association of Southeast Asian (Asean) customs agencies in establishing a One-Asean, One Customs environment among the 10 Asean member economies through the envisioned Asean Economic Integration for 2016 during the formal opening of the 18th Meeting of the Asean Coordinating Committee on Customs (CCC).

In delivering his keynote address to the customs officials of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, Vietnam and the Philippines, Biazon underscored the evolving global economic trends where customs procedures among Asean member economies are being streamlined, trade barriers are being dismantled to give way to faster trade facilitation, even as enforcement of customs laws and rules and capacity building programs are being enhanced.

“Globalization is a reality we have to face and trade facilitation is at the forefront of this Asean economic endeavor” Biazon said, adding that, “Today’s meeting of customs chiefs shall, therefore, help pave the way for the establishment of an integrated customs agencies among the Asean countries,” Biazon said.

The Asean customs officials were also joined by the customs delegation from Japan, China and Korea.

The delegates to the 18th Asean CCCC shall discuss among others, the progress reports of the Customs Procedures and Trade Facilitation Working Group, the Customs Compliance Working Group and the Customs Capacity Building Working Group.

Preparations for the coming 22nd Meeting of Asean Directors-General of Customs shall also be discussed. Biazon currently seats as Chairman of said organization. (Malaya Business Insight)

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