PPA profit down on spending hike

The Philippine Ports Authority (PPA) recorded a double-digit drop in its profit in nine months to September as expenses went up by more than half due to the upgrade of old facilities.

- By ELIJAH FELICE ROSALES

Based on its financial statement, PPA's net income fell by 14 percent to P6.28 billion from January and September. Although revenue increased by 28 percent to P20.06 billion, its costs ballooned by 56 percent to P12.18 billion, two-thirds of which were non-cash expenses.

The increase in non-cash expenses is expected since PPA is undertaking a string of port upgrades across the archipelago. This means the agency is covering the depreciation cost of the infrastructure it is improving.