The Philippine Ports Authority (PPA) hiked its profit by nearly half to over P9 billion in the nine months to September, putting it on track to remit another record contribution to the government.
Based on its financial statement, PPA increased its net income by 46 percent to P9.19 billion from January to September, from P6.28 billion a year ago.
The regulator of domestic ports grew its revenue by 11 percent to P22.29 billion, drawing much of it from service and business income, which reached P22.25 billion.
PPA paired its revenue-generating efforts with cost-cutting interventions. The agency cut its spending by eight percent to P11.17 billion, from P12.18 billion, primarily on the reduction in its non-cash expenses.
Under Republic Act 7656 or the Dividends Law, state-run firms like the PPA are tasked to remit 50 percent of their profit to the Bureau of the Treasury. The dividends are accounted as non-tax revenues that the government uses to fund infrastructure and social projects.
In 2024, PPA turned in a record P5.2 billion in dividends, resetting the previous high of P5.06 billion in 2023.
PPA only ranks behind the Bangko Sentral ng Pilipinas, Philippine Deposit Insurance Corp. and the Philippine Amusement and Gaming Corp. in remitting the highest dividends, making the agency one of the government’s most reliable state-run firms.
For 2025, PPA expects to remit another record amount on the expansion of its revenue stream and the privatization of local ports.
In July, PPA general manager Jay Santiago told The STAR that his agency is aiming to turn over 12 ports to the private sector this year. PPA wants the private sector to take over 12 ports in Luzon and Mindanao in line with the government’s push for more public-private partnerships.
Last year, PPA turned over the Iloilo Commercial Port Complex to the International Container Terminal Services Inc. in a P10.53-billion agreement. Since then, the port has undergone several upgrades to make it more receptive to the shipping industry’s demands.
PPA is also relying on the expansion of domestic travel by sea to increase revenue collection from passengers.
During the Undas break – when Filipinos went home to their provinces – PPA had projected a passenger traffic in ports of 2.2 million, but has so far recorded just 1.51 million as of yesterday afternoon.