Fast attack submarine USS Texas in Subic Bay

The Virginia-class fast-attack submarine USS Texas (SSN 775) arrived in Subic Bay Jan. 5 for a visit as part of its Indo-Asia-Pacific deployment.

With a crew of approximately 135, Texas conducts a multitude of missions to enhance proficiency of the submarine fleet. Texas is the second Virginia-class fast-attack submarine commissioned by the United States and is operated by some of the Navy’s finest and most well-trained officers and enlisted personnel.

Measuring more than 377 feet long and weighing more than 7,800 tons when submerged, Texas is one of the most technologically advanced submarines in the world. This submarine is capable of executing a multitude of missions including anti-submarine warfare, anti-surface ship warfare, strike, surveillance and reconnaissance, irregular warfare, mine warfare and shallow water operations.

For many crew members, this is their first visit to the Philippines.

“Texas Sailors are hardworking and downright dedicated,” said Master Chief Machinist’s Mate Daniel Kloepfer, Texas’s chief of the boat. “Maintaining a forward-deployed nuclear submarine is not an easy task and Subic Bay will allow for some much deserved rest for the crew.”

“I can’t wait to get to the Philippines for the first time,” said Electronics Technician 2nd Class Keagan Garber. “I’m looking forward to exploring the great outdoors.”

Built in Newport News, Virginia from 2002 – 2004, Texas established its home in Groton Connecticut before transferring to Pearl Harbor in 2009. The boat is sponsored by former first lady Laura Bush. (USS Texas Public Affairs)

PHOTO:
The US Navy’s Virginia-class submarine USS Texas (SSN 775) is docked at the Alava Wharf of the Subic Bay Freeport Wednesday morning (January 6) for a routine port call. (AMD/MPD-SBMA)

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SBMA commended for its financial and investment gains

The Regional Development Council of Region 3 (RDC 3) recently cited the Subic Bay Metropolitan Authority (SBMA) for the financial and investment strides it had achieved in the past three years.

In a resolution passed by the RDC 3 last January, the council commended the SBMA for “the financial viability of the authority, improving the collection of customs duties and other taxes, as well as increasing investment commitments within the Freeport and Special Economic Zone, and for optimizing container traffic at Subic Port”.

According to the same resolution, “SBMA was able to restore the financial viability of the authority by posting annual net incomes ranging from Php0.8 billion to Php1.3 billion from 2012 to 2014, a complete turnaround from the negative income streams ranging from Php0.2 billion for six (6) consecutive years starting 2006 to 2011”.

SBMA chairman and administrator Roberto V. Garcia recently reported that SBMA hit new record highs in its 2014 financial performance, as it scored a net income of P1.6 billion vs. its 2013 income of P1.1 billion for a substantial increase of 40 per cent.

The RDC 3, which serves as the counterpart of the National Economic and Development Authority (NEDA) Board at the sub-national level in Region 3, likewise noted in its resolution that the SBMA’s implementation of various trade facilitation measures and innovations in systems and procedures had boosted the collection of customs duties and other taxes.

Through these actions by SBMA, “...the collection of customs duties and other taxes in within SBF-SEZ increased dramatically from Php7.2 billion in 2011 to Php16.8 billion that corresponds to 233 percent growth”, the RDC 3 said.

The NEDA regional office likewise cited the Subic agency for maximizing container port traffic in the Subic port and for initiating ”business process improvements and promotion activities that boosted investment commitments fromPhp3.6 billion in 2-13 to Php9.7 billion in 2014”.

Due to the renewed business and manufacturing climate in the Freeport, the RDC 3 said that the gross revenue share of affected local government units correspondingly increased by 40 percent, from PhP145 milllion in 2011 to PhP203 million in 2014.

Garcia welcomed the RDC 3’s commendation and assurance of full support to SBMA’s development efforts geared toward making Central Luzon a leading regional transhipment and global gateway.

“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,” Garcia said. (AMF/CorComm/MPD-SBMA)

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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)

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SBMA to release 41% higher LGU revenue shares

The Subic Bay Metropolitan Authority (SBMA) is set to release next week some P105 million in revenue shares to local government units (LGUs) adjacent to and affected by the operation of the Subic Bay Freeport Zone.

SBMA Chairman Roberto Garcia announced on Monday that the funds will be made available to the LGUs starting February 6.

The amount consists of P98 million in total revenue shares culled from July to December 2014, and P7 million in refunds of the 10-per cent retention withheld in the second semester of 2012.

According to the SBMA Accounting Department, the P98-milion figure exceeds by 41 per cent the P74.5-million shares given for the same period last year.

Garcia said the distribution of the revenue shares is aimed at spurring development in the eight neighboring LGUs and helping achieve President Aquino's goal of inclusive growth.

In August 2014, the SBMA released a total of P93.7 million in revenue shares for the first half of 2014, for a total LGU share of P199 million last year.

For this period, Olongapo City will receive the biggest share at P25.5 million, while Subic, Zambales will get P15.7 million; Dinalupihan, Bataan, P13.2 million; San Marcelino, Zambales, P12.7 million; Hermosa, Bataan, P10.8 million; San Antonio, Zambales, P9.3 million; Morong, Bataan, P9.1 million; and Castillejos, Zambales, P9 million.

The LGU share is determined according to 50 per cent population, 25 per cent land area, and 25 per cent equal sharing.

The LGU shares come from part of the five per cent corporate taxes paid by Subic Bay Freeport-registered enterprises, of which two per cent goes directly to the SBMA treasury while the other three goes to the national coffers through the Bureau of Internal Revenue (BIR).

The direct payment scheme was initiated by the SBMA some four years ago to hasten the release of LGU shares, which augment LGU funds for developments projects in health, education, peace and order, and livelihood generation. (RFD/MPD-SBMA)

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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)

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SBMA projects P1.17 billion in net earnings for 2014

The Subic Bay Metropolitan Authority (SBMA) projects net earnings of P1.017 billion by year end, having reached the level of P737.89 million in June 2014 compared to the P992 million total in 2013.

This, as SBMA has again notched impressive financial performance in the first semester of 2014, surpassing even its record-breaking first half performance last year when it turned in a net profit of P1.2 billion, the agency’s highest in its entire 21-year history.

According to the SBMA’s midyear accomplishment report, the state-owned corporation obtained positive results in the first six months of 2014 in all the key results areas like investment generation, customs duties and tax collections, export production, as well as job creation.

In terms of committed investments, the SBMA amassed $267 million in the first six months of 2014, a 400 percent improvement over the $53 million record in the same period the previous year.

Meanwhile, freight-on-board exports rose by 173 percent, with $185,088 million in the first semester 2014 compared to $67,476 million last year; while employment generation managed a 1 percent growth, from 89,436 in 2013 to 90,425 in 2014.

Likewise, cash collections by the Bureau of Customs (BoC) here grew by 44 percent, from P4.945 billion in the first half of 2013 to P7.099 billion in 2014; while taxes collected by the Bureau of Internal Revenue (BIR) rose by 25 percent, from P737 million in the first half of 2013 to P919 million in the same period this year.

SBMA officials said the continuing improvement in the agency’s financial performance stemmed from prudent fiscal management over the past few years under the helm of Chairman Roberto Garcia, which successfully implemented various measures to balance the budget and promote a healthier financial condition for the organization.

Records from the SBMA Finance Group indicated that, in particular, port revenues showed an increase of 52 percent in the first half of 2014 to cement a positive financial performance for the Subic Bay Freeport. The port revenues totalled P457.29 million, compared to P300.94 million in the same period last year.

Tourism revenues also grew by 20 percent, from P6.9 million last year to P8.29 million this year, resulting to a 27 percent increase in the SBMA’s total operating revenues that increased from P946.01 million in first half 2013 to 1.198 billion this year.

The agency also posted a 62 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA), from P454.10 million to P737.89 million. The increased earnings, officials said, would allow the agency to recoup by the yearend despite a midyear slowdown in net income before tax from P767.27 million in January-June 2013 to P337.26 million this year.

In view of SBMA’s improved fiscal performance, the agency was able to remit P243 million in dividends this year to the National Treasury, the first time it did in more than a decade.

It also released P93.7 million in revenue shares early this month to local government units contiguous to the Subic Bay Freeport, and P14.8 million in rental fees to the Ayta Ambala tribe for the use of parts of their ancestral domain in the Subic Bay Freeport. (HEE/MPD-SBMA)

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SBMA H1 earnings increased by 62% to P738M

The Subic Bay Metropolitan Authority (SBMA) has recorded an increase of 62 per cent in earnings before interest, tax, depreciation and amortization (EBITDA) during the first semester this year.

This was announced by SBMA Chairman Roberto Garcia, who also cited the added flexibility in the agency’s financial program as a result of its efforts to increase its earnings.

“Our EBITDA increased by 62 per cent - from P454 million in the first semester last year to P738 million in the same period this year,” Garcia said in a recent press briefing.

“This gives SBMA the desired spending power and fiscal flexibility to manage its various financial obligations,” he added.

Garcia explained that this year’s first semester earnings of P738 million was derived from a total of P1.2-billion in operating revenue, less the P461-million total in operating expenses.

He added that the increase in EBITDA can be attributed to a 27 per cent increase in total operating revenues and a 6 per cent decrease in total operating expenses.

According to a report from the SBMA Finance Group, the Subic authority posted operating revenues of P627,319,504.39 from leases; P380,800,701.72 from port services; P8,277,995.15 from tourism services; and P182,220,722.83 from other operating incomes.

On the other hand, the agency incurred operating expenses of P194,216,593.46 in manpower; P80,823,616.77 in bad debts; P43,504,924.73 in power; P17,459,000.74 in supplies, materials and fuel; P3,584,204.33 in water; and P121,145,435.64 in other operating expenses.

Records from the SBMA Accounting Department also revealed that the agency’s net income after tax to-date amounted to P322 million.

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 institution.

The present SBMA administration headed by Garcia has been largely credited for turning around the agency’s financial standing from several years of non-profitability to attaining record earnings starting 2012.

Garcia said the SBMA is now committed to further improving its financial condition to develop facilities here and attract more investments in the Subic Bay Freeport Zone. (RFD/MPD-SBMA)

PHOTO: SBMA Administration Building 229

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