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 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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