The Philippine Ports Authority (PPA) reported strong net income driven by higher vessel and cargo traffic and a significant reduction in overall expenses.
PPA General Manager Jay Santiago said its revenues went up 13.7 percent in the first half this year to PHP14.68 billion, over the same period last year and beating its mid-year target by nearly a billion pesos.
The growth in revenue was primarily driven by increased vessel and cargo traffic, favorable movements in dollar-denominated tariffs, higher storage fees, and income from regulatory sources.
Regulatory income remains the largest contributor, accounting for 59.23 percent or PHP8.69 billion of total revenues, followed by service and business income and interest and other income.
As a result, PPA’s net income before tax surged to PHP7.70 billion, exceeding the target of PHP5.94 and marking a 71.95 percent increase from the same period last year.
Net income after tax reached PHP6.72 billion, which is 35.43 percent above target and 77.67 percent higher than 2024 figures.
This strong profitability was supported by effective cost management, with total expenses at PHP6.98 billion or 10.84 percent below the budgeted amount and 17.23 percent lower year-on-year. The decrease in expenses was primarily attributed to the reduction in non-cash expenses.
From a long-term perspective, the PPA’s financial performance has demonstrated consistent growth, said Santiago.
Total revenues have risen from PHP14.32 billion in 2016 to PHP27.64 billion in 2024, with regulatory income increasing from PHP6.82 billion in 2016 to PHP15.68 billion in 2024.
This steady rise highlights the agency’s evolving role and its efforts to transform the Philippine port system into a more efficient and globally competitive sector.
The PPA is expanding, automating, and regionalizing its port systems and operations. With its consistent financial gains, the PPA commitment in delivering better services, modernizing port infrastructure, and building a legacy in dividend contributions will certainly bring growth in the maritime sector in the country and across the world.
