PPA targets P5 billion dividends in 2024

MANILA, Philippines — The Philippine Ports Authority (PPA) plans to increase its contribution to the government to as much as P5 billion this year to retain its position as one of the highest remitters among state-run firms.

The PPA plans to raise its dividends to the government by 13 percent to P5 billion in 2024 from P4.4 billion in 2023 as finances stabilize on the resurgence of trade and travel activities.

Also, PPA general manager Jay Santiago hopes that the agency will remain as one of the biggest contributors among government-owned and controlled corporations (GOCCs) this year.

“We are here to bring results and effective outcomes, (and) we seldomly talk, but the actions that we do speak louder. We are serious in maintaining PPA’s strong and steady financial performance not only this year, but also for the years to come,” Santiago said.

The PPA was recognized by the Department of Finance (DOF) for remitting one of the highest dividends among GOCCs in 2023. The Bangko Sentral ng Pilipinas topped all state-owned firms with P55.61 billion, while the Philippine Deposit Insurance Corp. came next with P14.05 billion.

The Philippine Amusement and Gaming Corp. landed the third spot with P6.96 billion, followed by the PPA’s P4.44 billion.

The DOF said that collections from GOCCs went up by 46 percent to P99.98 billion in 2023 from P68.34 billion in 2022, as the agency demanded them to comply with their mandate to support in financing government services.

Under Republic Act 7656 or the Dividends Law, GOCCs are required to turn over at least 50 percent of their net earnings to the government.

The PPA, for its part, has sustained a growth trend in its dividends to the government since 2016. By year, the PPA remitted contributions amounting to P1.96 billion in 2016; P3.1 billion in 2017; P3.52 billion in 2018; and P5.05 billion in 2019.

The agency, however, suffered a decline to P3.76 billion in 2020, marked by the spread of a virus that forced nations to shut their borders. Since then, the PPA has picked up slack and returned to expansion mode.

In 2023 the PPA grew its revenue by a third on a yearly basis, and started the development of 81 projects nationwide, of which 39 are in Luzon, 23 are in Visayas, and 19 are in Mindanao.

For this year, the agency tasked to develop and regulate ports seeks to complete 29 projects as it shifts its focus on greening the docks to ensure that they can withstand climate risks.