PPA sustains recovery, earns P7 billion in 9 months

MANILA, Philippines — The Philippine Ports Authority (PPA) posted a profit of more than P7 billion in the nine months to September, buoyed by the sustained recovery of logistics activities and sea travel.

Based on its financial report, the PPA’s net income rose by two percent to P7.33 billion as of September from P7.16 billion a year ago.

Broken down, revenue ballooned by 12 percent to P16.72 billion from P14.86 billion, driven by the improvement in service and business earnings.

On the other hand, expenses went up by 22 percent to P7.81 billion during the nine-month period from P6.42 billion a year ago as the agency was required to spend more on additional personnel and new projects. The PPA also registered a 67-percent jump in its non-cash spending to P4.4 billion between January and September.

The PPA enhanced its equity by eight percent to P149.03 billion from P137.36 billion. The agency attributed the increase in its net worth to hikes in revaluation surplus (P89.21 billion) and retained earnings (P52.49 billion).

For the year, the PPA is confident that it will remain profitable even as it moves to slash the cost of cargo handling as ordered by President Marcos.

To accomplish this, PPA general manager Jay Santiago said cargo volume may expand by eight percent and passenger footprint may rise by 20 percent on resurgent spending in the post-pandemic period.

The PPA serves as one of the largest dividend remitters to the government among state-run firms, joining the ranks of the National Transmission Corp. and the Philippine Deposit Insurance Corp.

Every year as mandated by law, the PPA is required to turn over 50 percent of its earnings to the government.

For 2022, the PPA enhanced its dividends to the government by nine percent to P4.44 billion, from P4.08 billion in 2021.

Meanwhile, the PPA has completed about 70 percent of the new port that it is building in Marawi City, a project that forms part of efforts to rehabilitate the town. The agency expects to finish the port by February 2024, banking on the facility to boost trade and travel in the rebuilding city.

The project covers the construction of multiple facilities, such as the backup area of about 8,000 sqm, a passenger terminal building with a seating capacity of 132 and a one-story fish port.

Marawi City was devastated by the fighting between state forces and Islamist militants in 2017.