PNR income drops on subsidy cut

MANILA, Philippines — The Philippine National Railways (PNR) reported a 79 percent decline in net income in 2022 following a government decision to reduce the subsidies it allocate to the railway company.

PNR said its surplus fell to P317.4 million last year from P1.5 billion in 2021, as the spike in its expenses outpaced the growth in earnings.

The government reduced the subsidies for PNR by 42 percent to P1.22 billion, as the agency recovers its income stream with the resumption of daily trips.

Without state support, however, PNR’s deficit worsened by 45 percent to P916.39 million from P628.77 million. For 2022, revenue raised by PNR grew by 30 percent to P564.63 million, although expenses jumped by 40 percent to P1.48 billion.

On the revenue side, PNR raked in P153.53 million in transport fees collected from commuters who availed of rail services. The state-run firm also gained P407.2 million in rent income taken from enterprises and households situated within PNR properties.

In particular, PNR maintains lease agreements with Tutuban Properties Inc., SM Prime Holdings Inc., Manila North Tollways Corp. and a number of homeowners associations.

On the other hand, PNR spent P681.36 million for maintenance and operating expenses; P352.25 million for cash expenses; P313.76 million for non-cash expenses; as well as P133.65 million for personnel expenses.

With less subsidies, PNR had to pay for the additional cost of sustaining rail operations, including the repair of assets, buildings, equipment, machinery and structures.

PNR doubled the number of passengers it serviced to 8.25 million last year from 3.8 million in 2021. During the period, PNR deployed a total of 18,837 trips, most of which were carried by the Metro South Commuter.