SBMA cites robust financial performance

The Subic Bay Metropolitan Authority (SBMA) reported a steady growth in income and a strong performance in key financial operations last year, as it set into motion a more aggressive program in investment generation, project expansion and job creation.

SBMA Chairman and Administrator Wilma T. Eisma said in her State of the Freeport Address (SOFA) on Tuesday that the Subic agency recorded a 34 percent increase in net income last year, which grew to more than P91 million compared to P68 million in 2016.

She added that the SBMA posted total revenue of P3.08 billion in 2017, compared to P2.95 billion in 2016, for a positive variance of 4 percent; and showed an increase of 8 percent in operating income, which rose from P1.44 billion in 2016 to P1.55 billion in 2017.

At the same time, the agency’s cash and investments grew by 4 percent to P4.43 billion, compared to P4.24 billion in 2016, while total debt went down by 5 percent from P6.55 billion in 2016 to P6.2 billion last year.

Financial Success

“These are indicators of robust financial health,” Eisma said, as she went on to cite similar accomplishments in employment, revenue sources, and contributions to the national economy. “If this is not success, then I don’t know what is,” she added.

Eisma explained that despite a downturn in committed investments, the SBMA managed to win over 239 new investors last year, compared to just 144 in 2016, for a 66 percent increase. Thus, while committed investments went down to P2.54 billion in 2017 from P6.35 billion in 2016, projected employment still grew to 3,488 from 3,868 in 2016, or just a slight dip of less than 10 percent.

The SBMA chief likewise pointed out that Subic was a runaway winner last year in terms of project expansion by existing business locators with 63 expansion projects put up, compared to 37 in 2016. These expansions gave Subic an additional P1.09 billion in committed investments, which translated to a huge 203 percent increase over the P36 million recorded in 2016.

Revenue Sources

Overall, Eisma said the SBMA earned a total of P3.08 billion in revenues from seven sources: leases, which yielded P1.52 billion; port services, P961 million; regulatory fees, P338 million; common use service area (CUSA) fees, P103 million; tourism, P16 million; environmental and tourism admission fee (ETAF), P10, million; and other revenue sources, P126 million.

She added that the Subic agency was just as successful in its major thrust of job creation, as it facilitated the entry of 15,500 workers into Subic’s active workforce last year, thus increasing the manpower count here by 14 percent, or from 112,600 workers in 2016 to 128,100 in 2017.

The Subic workforce is now comprised of 70,650 workers in the services sector; 33, 593 in shipbuilding; 15,303 in manufacturing; and 8,621 in construction.

Economic Contribution

Meanwhile, the SBMA provided the national economy with a total of P19.6 billion in various contributions, an amount that was 14 percent higher than the total contributions in 2016.

These included P16.8 billion in cash collections by the Bureau of Customs, which increased by 11 percent over the 2016 figures; P2.2 billion in taxes collected by the Bureau of Internal Revenue, an increase of .8 percent; P92 billion in dividends, or a whopping increase of 533 percent; and P.3 billion in shares to local government units, or an 18 percent increase.

Eisma also said that with the increasing number of ship calls, the SBMA recorded total port revenue of P1.2 billion, which represented a 6 percent increase over the P1.13 billion record in 2016.

The Port of Subic also reported $2.3 billion in total export trade value and $1.7 billion in import trade value last year, an increase of 38 percent and 11 percent, respectively, over 2016 figures. (HEE/MPD-SBMA)

PHOTO:

‘WE DID IT’- SBMA Chairman Wilma T. Eisma outlines gains made by the Subic agency in her State of the Freeport Address last Tuesday. (AMD-MPD-SBMA)

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SBMA bullish on 2018 investments

The Subic Bay Metropolitan Authority (SBMA) is optimistic that renewed investor confidence in the Subic Bay Freeport would sustain an upbeat mood here in what has been hailed last year as the fastest growing free trade zone in Asia.

According to SBMA Chairman and Administrator Wilma T. Eisma, the Subic agency expects more investment projects in 2018 to top the P2.54 billion in total committed investments generated here in 2017.

“We recorded a total of 176 new investment proposals and 63 expansion projects proposed by existing investor-companies last year, but we anticipate more investments this year because we’re opening new areas for development and, at the same time, putting more value into existing facilities so that we could attract more takers,” Eisma said.

According to figures from the SBMA Business and Investment Group (SBMA-BIG), the Subic agency processed 56 new investment projects in the first quarter of 2017, 27 in the second quarter, 49 in the third, and 44 in the last quarter to generate a total of P1,448,358,341 in committed investments last year.

The 2017 investment projects also yielded a projected employment total of 2,667.

On the other hand, the 63 expansion projects proposed last year by existing firms here brought a total of P1,088,313,616 in new investments and a total of 821 additional jobs.

With these, the SBMA-BIG processed last year a total of 1,221 certificates of registration (CRs) and certificates of registration and tax exemption (CRTEs), compared to its target of 806 certificates. The certificates allowed holders to operate as business entities inside the Subic Bay Freeport Zone.

Eisma also pointed out that the SBMA Business and Investment Group as of November 2017 reported actual revenue generated at P1.23 billion, which was P353 million more than the target of P913 million for last year.

“Compared to the actual revenue of P1.15 billion in 2016, the P1.23 billion that SBMA-BIG earned last year was higher by P83.2 million, or 7.23 percent,” Eisma added.

The SBMA official also said that the agency should have recorded much bigger investment commitments and projected employment had the Dynamic Konstruk project at the Redondo Peninsula pushed through.

“That alone would have brought in P40 billion in investments and 50,000 new jobs, but we revoked the lease and development agreement after the project proponent failed to meet its obligations,” Eisma added.

She said, however, that the Subic agency will open up the Redondo Peninsula for development upon the completion of a new master plan for the area. The SBMA has identified some 3,000 hectares at Redondo, which would be ideal for projects in port, fuel depot, wind and solar energy generation, and industrial estate operations.

“We’re also seeking to invest in new road networks to increase the value of idle land and facilities within the Freeport and to move away from the ‘as-is-where-is’ policy that leaves investors to develop the area they were leasing,” Eisma revealed.

She added that the SBMA is also looking into the proposed measure to extend the validity of business registration from one to three years to promote customer satisfaction, improve business operations in the Subic Freeport, and attract more investments.

The Subic Bay Freeport is now home to more than 1,500 investor-companies with more than $11 billion in total cumulative investments and employing a total workforce of more than 124,000 employees. (HEE/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma discusses business prospects in the Subic Bay Freeport with officials of the Subic Bay Freeport Chamber of Commerce on Wednesday.

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SBMA posts P1.2-billion port revenue in 2017

The Subic Bay Metropolitan Authority (SBMA) has recorded P1.2 billion in seaport revenue last year, surpassing its 2016 record by three percent, with an increase of 12 percent in the port’s containerized cargo volume.

SBMA Chairman and Administrator Wilma T. Eisma said that figures from the SBMA Seaport Department indicated a total income of P1,173,720,042 in January to December 2017 last year, compared to the P1.137 billion revenue collection in 2016.

“The continuing effort of the Seaport Department to upgrade its process flow minimized transaction time and attracted more and more importers and exporters to use the Port of Subic,” Eisma noted.

She pointed out that the volume of containerized cargo grew to 139,980 twenty-foot equivalent units (TEUs) in 2017 from just 124,707 TEUs in 2016. This increase in containerized cargo had offset a six-percent decrease last year in the volume of non-containerized cargo, which fell to only 6,646,322 metric tons as against 7,071,444 metric tons in 2016.

Accordingly, the SBMA Seaport Department processed 66,172 TEUs of imported containerized products in 2017, which was nine percent higher than the 60,593 TEUs processed in 2016. Meanwhile, the department processed last year 25,007 TEUs of exported containerized products, which was six percent higher than the 23,527 TEUs in 2016.

The increase in import-export volume that passed through the Port of Subic likewise resulted in a significant increase of containerized cargoes transshipped in the Freeport: 1,462 TEUs in January to December 2017 against 368 TEUs in 2016, or an increase of 297 percent.

Jerome Martinez, head of the SBMA Seaport Department, said much of the increase in revenue was due to the growth in imported products like vehicle parts by Foton Motor Phils., Inc.; paper materials by Trust International Paper Corp.; and rubber by Yokohama Tire Phils. Inc., which were all sourced from Japan.

Likewise, the growth in export revenue was attributed to increased export of tires by Yokohama Tires Phils. to Japan; Juken Sangyo Phils. for veneer lumber also to Japan; and HLD Clark Steel Pipe Co. for steel pipes to the United States.

Martinez also said that another factor in seaport revenue growth was the implementation of Republic Act 10668, also known as the Foreign Ships Co-Loading Act, which allowed arriving or departing ships to carry a foreign cargo to its Philippine port of final destination, after being cleared at its port of entry or exit.

“This law tends to decrease, in some instances, vessel activities going to the Port of Subic, particularly in the importation and exportation of goods,” Martinez said. “However, transshipment activities increase,” he added.

The devaluation of peso against the US dollar and the unstable global price of crude oil in the world market which caused a decline of the importation of petroleum products, also buoyed Subic seaport income, said Martinez.

SBMA Chairman Eisma also expressed optimism for the Port of Subic this 2018, pointing out that one of the world’s largest cruise ships will be arriving here in June for a 12-hour tour of the Subic Bay area.

Eisma said this was confirmed after Dr. Zinan Liu and other officials of Royal Caribbean International (RCI) spent a two-day assessment of the Subic Bay area last December for the purpose of including Subic in the itinerary of RCI’s Asian cruise program.

Subic reportedly checked out as a cruise ship destination after Liu noted that it has attractions for people interested in culture, history and religion, aside from the theme parks, beach resorts, hotels and other modern amenities found in the area.

Eisma estimated that should each cruise ship passenger spend US$100 during their stay in Subic, local businesses would gain millions in income during the visit. (RAV/MPD-SBMA)

PHOTO:

Containerized cargo boxes line up the New Container Terminal in the Subic Bay Freeport (AMD/MPD-SBMA)

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SBMA sees 15% revenue increase from Subic ICT sector

The Subic Bay Metropolitan Authority (SBMA) is projecting a 15 percent increase this year in revenue generation from the Information and Communication Technology (ICT) sector in this free port after posting an average monthly income of P6 million in the past five months.

SBMA Administrator and CEO Wilma T. Eisma said the agency’s Business and Investment Department for ICT has made the forecast after a consistent growth that has eclipsed 2017 revenue targets.

She said that with an average monthly collection of P6 million, the agency’s BID-ICT is expecting to generate around P76.4 million at the end of the year. “This would be 15.64 percent higher than the revenue we posted for ICT in 2016,” Eisma said.

The BID-ICT, which handles locators engaged in business process outsourcing (BPO), business process management (BPM), and other related industries, has collected a total of P68,314,258 in revenue for 2016, said Cleofe Espineli, who heads the department.
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At last count, there are 95 locators engaged in ICT inside the Subic Freeport, said Espineli. These are infusing more than P32.17 billion worth of investments and employing nearly 2,000 Filipinos.

Espineli added that as of May this year, BID-ICT has already recorded a total revenue of P29,902,215, which is 35.15 percent higher than its 2017 revenue target.

She also said that BID-ICT is currently processing the expansions of some existing locators that will result in additional committed investments of P273 million and additional 608 personnel.

When completed, the expansion projects will generate additional revenue of P15.1 million for the SBMA.

“With my team’s commitment, determination and malasakit for SBMA, we will deliver the best that we can. We wanted to be part of the SBMA team that keeps winning,” Espineli also said.

Earlier, SBMA Administrator Wilma Eisma reported that in terms of over-all financial performance, SBMA posted P1.25 billion in revenue for January to May of 2017, which is 7.7 percent higher than the P1.16 billion in the same period last year.

“But the most interesting fact here is that the SBMA has already posted a net income P240.21 million from January to May this year, or 126 percent higher than the P106 million that was posted last year in the same period,” Eisma noted.

“Even if there are clouds over our heads that trouble our beloved agency, let us continue to perform with excellence and malasakit so that we will continue to contribute bigger shares to the government than ever before,” Eisma also said. (RAV/MPD-SBMA)

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Port of Subic posts 11% revenue growth

The Port of Subic posted an impressive 11 percent growth in revenue in the first five months of this year, despite less ship calls recorded in the same period.

According to Subic Bay Metropolitan Authority (SBMA) Administrator and CEO Wilma Eisma, total port revenue logged from January to May 2017 in Subic reached P488.82 million, which was 11 percent higher than the P440.99 million recorded in the same period last year.

A commercial vessel unloads containerized cargo at the New Container Terminal

“Considering that there were less ship calls this year than last year—we had a total of 1,164 in January to May 2017 compared to P1,414 in 2016—then that was still a remarkable achievement for Subic,” Eisma said.

Aside from this, she said that the Subic port also registered a 23 percent increase in export value, with total exports reaching US$1.06 billion in the first five months of 2017, compared to just US$865.26 million in the same period last year.

Similarly, Subic’s import value also rose by 9 percent in the same period, or from US$628.65 million last year to the current US$682.18 million, she added.

Eisma said that much of the growth in port business in Subic involved containerized cargo, which increased in volume from 51,346 TEUs (twenty-foot equivalent units) in January-May 2016 to 55,516 TEUs this year, for an eight percent increase.

However, non-containerized cargo volume suffered a five percent decrease, as only 2.96 million metric tons (MTs) passed through the Port of Subic this year, compared to 3.12 million MTs last year.

Still, the Port of Subic continues to attract more business, as 10 shipping lines now regularly call on Subic, said Ronnie Yambao, head of the SBMA port marketing office.

Ship-to-ship transfer operations in Subic Bay also contribute significantly to port revenue

The shipping lines, Yambao said, include major players like the Taiwan-based Evergreen, which is the fifth biggest shipping company in the world; the Singapore-based American President Lines (APL); Nippon Yusen Kabushiki Kaisha (NYK) of Japan; Mitsui O.S.K. Lines (MOL) also of japan; SITC Container Lines of China; and Wan Hai Lines, also of Taiwan.

The other shipping firms that call on Subic are: Bow Ship Management, Inc.; T. Madsen Shipping Philippines, Inc.; Soriamont Steamship Shipping; and Uni Ship Incorporated.

Yambao said the SBMA under Eisma’s administration seeks to increase container traffic in the Subic Bay Freeport and actively promotes Subic as an ideal shipping port for businesses in Central and North Luzon. (HEE/MPD-SBMA)

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SBMA keeps upbeat mood in 1st half

Good news kept coming out of the Subic Bay Freeport in the first half of this year, as the Subic Bay Metropolitan Authority reported continuing growth in revenue, dividends, investments, exports and tourism.

In a report to President Rodrigo Duterte, who is set to make his first State of the Nation Address on July 24, the SBMA indicated increases in all aspects of its performance from January to May this year, said SBMA Administrator Wilma Eisma.

She said that in terms of the agency’s financial performance, it recorded a 7.7 percent growth in revenue from a total of P1.16 billion in the first five months last year to P1.25 billion in January-May 2017, and a 3.4 percent increase in operating income for the same period.

“But the most revealing item here is SBMA’s net income which went up by more than 126 percent, because from the P106.27 million that was recorded in January-May 2016, we’re now at P240.21 million in just the first five months this year,” Eisma said.

“Apparently—and this cannot be denied—the SBMA has continued well in its growth path in the last few years and we are actually breaking old records here,” she added.

Eisma also said that because of the upsurge in its financial performance, the SBMA has managed to contribute bigger shares to the government than ever before.

This includes a 30.58 percent increase in the revenue shares to local government units that went from P115.22 million in the first half last year to P150.46 million this year; and a 30.42 percent increase in the government’s 3% share from the gross income earned in the Subic Bay Freeport, which rose from P178.37 million in January-May 2016 to P232.63 million in the same period in 2017.

Still, the dividends paid by the SBMA to the national government through the Bureau of Treasury, Eisma added, reached a huge 352.7 percent increase, as actual remittances grew from P145.91 million to P660.69 million.

Eisma said the favorable financial picture in Subic also extended to new investment commitments, which surged by 642 percent from P5.6 billion in January to May 2016, to P40.55 billion in January-May 2017. Likewise, the number of new business locators grew by 58, bringing the total number of Subic-registered businesses to 1,527, while expansion projects of existing locators jumped by 85 percent, or from 13 last year to 24 this year.

“The huge increase in new investment commitments is due primarily to the approval of the investment project of Dynamic Konstruk International Eco Builders Corp. (DKIEBC), which amounts to P39.92 billion,” Eisma explained.

DKIEBC will engage in general construction, renewable energy and industrial hub development at the Rodondo Peninsula, with projected employment ranging from a minimum of 10,000 to a maximum of 50,000.

Eisma said other major business developments in Subic this year included the soft opening of Datian Subic Corp.’s shoe factory, which now employs 1,000 workers; the ground-breaking of Toyota Subic, Inc.’s P150-million multi-level showroom and service center; the start of Teekay Swan’s and JOVO’s ship-to-ship transfer operations with an expected annual port revenue of P200 million; and the start of DM Leisure Corp.’s P4.6-billion golf course and leisure complex project.

Meanwhile, the SBMA also gave positive reports in tourism, with a 1 percent increase in visitor arrivals and a 3 percent growth in actual revenues that stood at P10.54 million in January-May 2017.

Relative to tourism, Eisma also reported that the Subic Bay Freeport became the first free port zone in the country to have declared non-smoking zones in compliance with President Duterte’s EO 26 that called for the establishment of smoke-free environments in public and enclosed places. (HEE/MPD-SBMA)

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SBMA posts P614.28-M earnings in just 4 months

The Subic Bay Metropolitan Authority (SBMA) continues to generate positive revenue figures this year, recording a total of P615.28 million in earnings before interest, taxes, depreciation and amortization (EBITDA) in just the first four months of this year.

SBMA Administrator Wilma T. Eisma said the Subic agency’s various strategic units contributed a total of more than P1 billion in operating revenues in the said period for a 9.5 percent increase over the P919.6 million posted last year.

Minus the operating expenses of P313.5 million and bad debts account of P78.2 million, Eisma said the SBMA managed a P56.9 million increase over the 2016 EBITDA of P558.3 million for a 10.2 percent increase in earnings.

“We’re very much optimistic that while 2016 was considered a banner year in SBMA finances, we just might be able to top that at the rate we’re going this year,” Eisma said.

“The SBMA is actually riding an upward trend that began in the past few years, and I believe we can sustain that and that further growth will continue,” she added.

According to a comparative report from the SBMA Finance Group, agency earnings increased further this year compared to 2016 records. The agency’s net income, for example, surged by 148 percent from P18.5 million in the first quarter of 2016 to P46.76 million in the first quarter of 2017.

The biggest revenue contributor among the SBMA business units as of end-April this year was the Port Authority Group, which delivered P476.4 million in the first four months. The Business and Investment Group followed with total revenue of P426 million; Public Services Group, with P67.5 million; Regulatory Group, with P18.38 million; the Chairman and Administrator’s Group, with P9.25 million; and Support Services Group, with P7.19 million.

The biggest increases as of end-April this year over figures in the same period last year came from the Business and Investment Group, which posted close to P55 million in variance, and the Port Authority Group, which provided an increase of P17.85 million.

Meanwhile, the SBMA Tourism Department reported a 28 percent increase in revenues from visitor and tourist arrivals, as well as hotel occupancy, from January to April this year.

A report from SBMA Tourism showed a total of 894,603 visitors and 161,046 tourists arriving in Subic in the first four months. These figures represented respective increases of 70,648 and 30,284 over 2016 arrivals.

The 2017 arrival figures included some 289,600 visitors who arrived in the Subic Freeport for the Holy Week.

According to the report, the increase in the number of visitors and tourists this year generated actual revenues amounting to P2.74 million, which is 28% higher than the P2.1 million revenue record last year.

Among the events that generated much tourism traffic in the first four months this year are the arrival of the luxury cruise ship MS Bremen, and the three-day Summer Siren beach music festival that was held here in May. (HEE/MPD-SBMA)

PHOTOS:

[1] A cargo ship unload at the New Container Terminal and the Sattler Pier in the Subic Bay Freeport. (AMD/MPD-SBMA)

[2] Visitors saunter along the waterfront during the Summer Siren beach festival, one of the recent tourism crowd-drawers at the Subic Bay Freeport. (AMD/MPD-SBMA)

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SBMA cites positive outlook for Subic Freeport

The Subic Bay Metropolitan Authority (SBMA) foresees better days ahead for this premier Philippine free port, as the new administration seeks to build on past accomplishments to bring the Subic Bay Freeport to greater heights.

Expressing optimism for better performance by the Subic agency in terms of revenue, job generation and contribution to the economy this year, SBMA Administrator Wilma Eisma outlined measures to improve and expand Subic operations and urged both locator-businesses and workers here to do better.

“We must look back into the past, so we could build a brighter future,” Eisma said during her State of the Freeport Address (SOFA) at the Subic Bay Exhibition and Convention Center (SBECC) on Monday.

“Taking into account our performance last year, what we have accomplished can certainly be improved upon,” she added.

According to the Subic official, the Subic agency earned a total of P727.6 million in the first quarter of this year, compared to P676.3 million in the first quarter last year.

Similarly, she pointed out that the SBMA posted a net income of P46.7 million in the first quarter of 2017, which represented a 148 percent increase over last year’s P18.8 million net income.

Eisma also announced that the total cash and investments made by the Subic agency in the first three months of 2017 amounted to P4.57 billion, or a 24.84 percent increase over last year’s P3.6 billion record.

On the other hand, the agency’s total debt decreased by 8.79 percent in the first quarter, with a total of P6,644,026,284.10 for this year compared to P7,284,520,865.20 last year.

The administrator also pointed out that the agency’s key performance indicators such as the number of investments, new locators, import value and export value all rose significantly for the Subic Bay Freeport in the same period.

“The number of total new investments here have slightly increased by one percent, from last year’s P1,406,476,765 to P1,420,747,404 this year,” Eisma announced during the SOFA, adding that the agency registered 47 new business locators in the first quarter.

Eisma also noted a similar increase in import value, from US$653.8 million last year to US$2.75 billion— or a 321 percent increase, and a 10 percent increase in export value, which rose from U$406 million last year to US$536.3 million this year.

Eisma added that companies such as Datian Subic Corp. and Toyota Subic, which located in the Subic Freeport this first quarter, have improved Subic’s business outlook, along with the approval of Dynamic Konstruct Corp.’s P42-billion investment for industrial park development and renewable energy project.

She also said that the SBMA sees more revenue outflow from the ship-to-ship transfer operations of liquefied natural gas by Jovo, the largest clean energy provider in China which is expected to contribute an annual port revenue of P200 million, as well as that of Teekay Swan, a joint venture that controls the world’s most expensive fleet of gas carriers.

Another billion-peso investment that the SBMA recently approved is the DM Leisure Corp.’s P4.6-billion golf course and leisure complex project. Eisma said that this will not only increase investments in the Freeport, but also boost the number of workers employed and the number of tourists visiting Subic.

Administrator Eisma made the State of the Freeport Address along with SBMA Chairman Martin Diño, who enumerated several development projects planned for implementation by the Subic agency. The SOFA is an annual event presented and organized by the Subic Bay Freeport Chamber of Commerce. (JRR/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman Martin Diño (right) and SBMA Administrator Wilma Eisma (second from right) receive recognition from Subic Bay Freeport Chamber of Commerce president Rose Baldeo (second from left) and SBFCC treasurer Edna Canlas, along with Philippine Chamber of Commerce and Industry Chairman Sergio R. Luis-Ortiz Jr., during the State of the Freeport Address on April 24. (AMD/MPD-SBMA)

[2] SBMA Administrator Wilma Eisma outlines measures to further develop the Subic Bay Freeport during her State of the Freeport Address on April 24. (AMD/MPD-SBMA)

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