Net revenues at the Puerto Rico Highway and Transportation Authority came in 5.2% better than budgeted in the first six months of its fiscal year, the authority reported.
The authority had net revenues of $230.9 million from July 1, 2013 to Dec. 31, 2013. The budgeted projection was $219.4 million.
Operational revenues and operational expenses came in better than expected but non-operating expenses came in worse.
Operational revenues were $7.1 million or 8.8% more than budgeted. Operational expenses were $14.3 million or 10.7% lower than expected. Non-operating revenues were $9.8 million or 3.6% less than budgeted.
Operational revenues consist of tolls, train fares and other income. Non-operating revenues consist of petroleum taxes, gasoline tax, vehicle license fee, cigarette tax, and diesel oil tax.
"Petroleum revenues [in non-operating income] for the semester ended Dec. 31, 2013 are not representative of the expected revenues for the remainder of the fiscal year as a result of a temporary suspension from Aug. 10 to Aug. 31 of the additional $6.25 per barrel that was implemented on July 1, 2013," the authority stated. "In addition to this, most petroleum revenues are received based on the previous month's imports and applicable rate. Therefore petroleum revenues for July were based on a rate of $3.00 per barrel."
The 1968 resolution coverage ratio was 4.16 times, compared to a commitment of 1.5 times.
The 1998 resolution senior debt service coverage ratio was 2.00 times versus a commitment of 1.50 times. The 1998 resolution senior and subordinate debt service ratio was 1.78 times versus a promise of 1.25 times.
Aggregate system debt service was 1.62 times.
As of May 2013, the authority had $5.2 billion in bond debt. In addition, as of June 2013 it owed slightly under $2.2 billion to the Government Development Bank of Puerto Rico.
In June Puerto Rico's government passed measures to shift car license fees and cigarette tax revenues to the authority. It also increased the petroleum tax to $9.25 per barrel from $3 per barrel.
Moody's Investors Service rates the authority's 1968 resolution highway revenue bonds Ba1, the 1998 resolution transportation revenue bonds Ba2, and the subordinate transportation revenue bonds Ba3. Standard & Poor's rates all the bonds BB-plus.
