24 January 2014

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 EmpeƱo, Business Mirror)