PPA docks 9% higher earnings

From January to June

MANILA, Philippines — One of the government’s biggest sources of dividends is on its way to another year of profit growth, gaining a nine-percent increase in the first half due to higher revenue.

In its financial report, the Philippine Ports Authority (PPA) said its earnings went up to P7.3 billion from January to June, from P6.72 billion a year ago.

The regulator of local ports logged a 13-percent hike in expenses to P7.88 billion, but mitigated its impact by raising revenue by 11 percent to P16.34 billion.

The PPA raked in P16.33 billion in service and business income, largely collected from operating terminals and payment from concessionaires. It also booked P3.44 million in other non-operating income and P2.09 million in gains.

The PPA’s spending bill covered P4.62 billion in non-cash costs and P1.97 billion in maintenance expenses. It spent P1.29 billion on personnel services and P4.15 million on financial costs.

With a higher profit to date, the PPA is poised to match, if not exceed, its P8.27-billion record in 2025 to remain as one of the most viable government-owned and controlled corporations.

Given this, the government can look to another year of drawing higher dividends from the PPA, following its all-time high remittance of P5.33 billion in 2025.

Under Republic Act 7656, or the Dividends Law, state-run firms like the PPA must contribute at least half of their profit to the Bureau of the Treasury to improve funding for state projects.

So far, the PPA has transferred P62.33 billion in dividends since 1986. More than a third at P41.5 billion has been made under the term of general manager Jay Santiago, who took over in 2016.

The PPA, however, could face revenue slowdown if trade and travel volumes come down due to uncertainties in global logistics. Right now, some of the world’s busiest shipping corridors, such as the Strait of Hormuz, are dealing with naval blockades because of the geopolitical conflict in the Middle East.

The positive thing for the PPA is it can anticipate higher port activities in the fourth quarter, as it is historically the busiest season for sea travel during the Undas and Christmas holidays.

The PPA manages domestic ports across the archipelago, spending capital for the construction of new projects and the expansion of existing ones.