PPA net income up 3% in Q1

MANILA, Philippines — The Philippine Ports Authority (PPA) reported a three percent increase in net income in the first quarter.

PPA general manager Jay Santiago said the agency hopes to post a banner year this year as the country starts to recover from the adverse impact of the COVID-19 pandemic.

“If the first quarter of 2021 is any indication, the PPA is in for another good year in spite of the pandemic. The agency posted a three percent hike in net income in the first three months of 2021, suggesting that economic activities are now rebounding from the effects of the pandemic,” Santiago said.

In 2020, the PPA posted a net income after tax of P6.14 billion, 16 percent lower than the previous year’s level due primarily to the negative impact of the pandemic.

Cargo volume fell to 230.43 million metric tons (MMT) last year from 266.42 MMT in 2019.

The PPA is expecting a recovery in cargo traffic this year, but its return to pre-pandemic level may not happen in the short-term.

For 2022 and 2023, PPA’s growth forecast for cargo volume is conservative at between one and three percent.

The PPA is also forecasting passenger traffic to hover at between 25 million and 27 million this year up to 2023 or a growth of about one to two percent.

From 2016 to 2020, the PPA said it has remitted more than P17 billion in dividends to the national government, which is more than double the P8.27 billion dividends it remitted from 2010 to 2015.

While existing law mandates the agency to give at least 50 percent of its net income annually to the government, its board has approved to give 56 percent of its net income for 2020, amounting to P3.54 billion.

Santiago said the PPA’s strong financial foundation is anchored on the unparalleled public service and anti-corruption efforts of the agency.

“This is a clear testament that transparent and honest public service goes a long way and the whole PPA organization is proud of its accomplishments,” Santiago said.

The agency’s strong performance also gives it enough financial flexibility to help the country in the current health emergency and carry out other vital infrastructure projects.

“This will go a long way in helping the national government in the country’s continuing fight against the global pandemic and the desire of the President to give comfortable lives to every Filipino.