PPA to remit P5B in dividends

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State-run Philippine Ports Authority (PPA) is set to remit to the government over P5 billion in dividends which is equivalent to 58 percent of the agency’s net earnings last year.

In a statement, the PPA said its board of directors on Tuesday approved the cash dividends of over P5 billion, marking its highest contribution to the National Treasury since its creation in 1974.

PPA’s latest dividend for 2023 surpassed all dividends remitted to the government, including its previous record of P4.4 billion in 2022.

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After being granted fiscal autonomy, the PPA must remit 50 percent of its annual net income to the national government.

Last year, PPA posted a 24 percent increase in revenues to P25.4 billion based on the unaudited figures, from P20.54 billion revenues in 2022.

The PPA has been a consistent top performer among government-owned and controlled corporations (GOCC). In 2023, it was recognized as one of the leading dividend contributors among GOCCs in the country, ranking fourth overall with a cash remittance of P4.44 billion.

Based on data form the Department of Finance, PPA’s 2023 dividends even surpassed those by other GOCCs like Philippine Charity Sweepstakes Office, Philippine National Oil Co., Subic Bay Metropolitan Authority and Clark Development Corp., among others.

Jay Santiago, PPA general manager, attributed the agency’s record-breaking figures to the good fiscal management and efficient operations of Port Management Offices nationwide.

From 2016 to 2023, PPA has a total dividend remittance of P30.97 billion, including the P5 billion dividends due for 2023, marking the highest remittance in decades.

This underscores a trend of increasing dividends by the PPA starting from 2016 with P1.96 billion, followed by P3.10 billion in 2017, P3.52 billion in 2018, a record-high of P5.05 billion in 2019, P3.76 billion during the COVID-19 pandemic in 2020, a rebound to P4.08 billion in 2021, and P4.44 billion in 2022.

Meanwhile, PPA said the overall collection efficiency ratio for 2023 stood at 99 percent, a testament to its efficacy in collecting government revenues.

PPA attributed this achievement to the stringent enforcement of the Cash and Carry System in which payment in cash, manager’s/cashier’s check or PPA pre-approved company check is made by the parties primarily liable — such as shipping lines, shippers or consignees — prior to withdrawal of cargoes from the port or loading of cargoes onto the vessel for charges against cargoes or before departure of the vessel for charges against the vessel.

The agency said it also ensures strict compliance from port customers with their contractual obligations and other rules and regulations set forth by the PPA.

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