Philippine Ports Authority exceeds H1 2025 revenue targets; increased vessel traffic and cost management measures cited

The Philippine Ports Authority (PPA) ended the first half of 2025 with revenue totalling PHP14.68 billion (US$260 million), exceeding what it said was its mid-year target by nearly PHP1 billion (US$18 million).

PPA also reported a 13.7 per cent increase in income in H1 2025 compared to H1 2024 and a "significant" reduction in overall expenses.

PPA said the growth in revenue was primarily driven by increased vessel and cargo traffic, favourable movements in dollar-denominated tariffs, higher storage fees, and income from regulatory sources.

Regulatory income remains the largest contributor, accounting for 59.23 per cent or PHP8.69 billion (US$150 million) of total revenues, followed by service and business income and interest and other income.

Net income before tax grew to PHP7.70 billion (US$140 million), exceeding the PPA's H1 target of PHP5.94 billion (US$100 million) and marking a 71.95 per cent increase from the same period last year.

Net income after tax reached PHP6.72 billion (US$118 million), which is 35.43 per cent above target and 77.67 per cent higher than the 2024 figure. PPA said this strong profitability was supported by effective cost management, with total expenses at PHP6.98 billion (US$122 million) or 10.84 per cent below the budgeted amount and 17.23 per cent lower year-on-year.

The decrease in expenses was primarily attributed to the reduction in non-cash expenses.

PPA said that, from a long-term perspective, its financial performance has demonstrated consistent growth. Total revenues have risen from PHP14.32 billion (US$250 million) in 2016 to PHP27.64 billion (US$490 million) in 2024, with regulatory income increasing from PHP6.82 billion (US$120 million) in 2016 to PHP15.68 billion (US$275 million) in 2024.