MANILA, Philippines — The government may receive its highest dividends from the Philippine Ports Authority (PPA) as the agency is projected to increase profit with logistics riding on an upward trend.
PPA general manager Jay Santiago expects his agency to hand over a new record-high remittance to the Bureau of the Treasury following a banner year in 2024.
Moreover, Santiago said the PPA is close to firming up its final budget for 2025, and projections are that it has enough funding to complete priority infrastructure.
“We don’t have (the final numbers for our dividends yet). However, I think we will exceed 2023 dividends,” Santiago told The STAR.
The PPA in 2023 set its highest dividends in history at P5.06 billion, translating to 58 percent of what the agency booked as net income. Between 2016 and 2023, the regulator of domestic ports has remitted P30.97 billion to the Treasury as part of its mandate as a state-run firm.
As such, the PPA has ranked as most reliant state-owned firms in terms of dividends, joining the ranks of the Bangko Sentral ng Pilipinas, Philippine Deposit Insurance Corp. and the Philippine Amusement and Gaming Corp.
Under Republic Act 7656, or the Dividends Law, state-run firms like PPA are required to remit at least half of their annual profit to the government. Dividends are collected as non-tax revenues, which are used to fund infrastructure and social programs of the government.
With revenue on an upward trajectory, Santiago confirmed that the PPA is well-funded to deliver new projects and finish ongoing works. In particular, he said the PPA should be able to complete the dedicated port for cruise vessels in Siargao within the year.
The PPA is spending P620.64 million to construct a cruise terminal in the Port of Jubang, which is the closest port to Siargao, a popular getaway for foreign tourists.
The agency booked its highest revenue ever in 2024, reaching P27.3 billion, up by seven percent from 2023’s P25.45 billion.
The PPA attributed its revenue growth to the global recovery of the logistics industry, picking up its pace in the pandemic aftermath. The agency recorded a 17 percent spike in wharfage dues, reflecting improvement in exports and imports.
Moreover, the PPA managed to monetize some of its high-value assets through privatization. It signed the P10.53 billion concession handing over the operations and maintenance of the Iloilo Commercial Port Complex to Razon-led International Container Terminal Services Inc.