SUNBIZ

Airports Fiji Pays Record Dividend To Government

Airports Fiji Limited made a record $10 million dividend payment to Government. It was driven by efficient capital expenditure management for the financial year 2012 and 2013. The cheque was
21 Dec 2014 12:07
Airports Fiji Pays Record Dividend To Government
From left: Airports Fiji acting board secretary, Rohit Prasad, new board members Xavier Riyaz Khan and Tui Macuata Ratu Wiliame Katonivere with Minister for Finance and Public Enterprise , Aiyaz Sayed-Khaiyum, Airports Fiji executive chairman, Faiz Khan, acting Permanent Secretary Public Enterprise, Shaheen Ali and acting Permanent Secretary Finance, Kelera Vakaloloma at Suvavou House yesterday. Photo: PAULINI RATULAILAI

Airports Fiji Limited made a record $10 million dividend payment to Government. It was driven by efficient capital expenditure management for the financial year 2012 and 2013.

The cheque was presented to the Minister for Finance, Aiyaz Sayed-Khaiyum equally split for both financial periods in Suva yesterday.

“The key fix that we came up with is that capital investments that we undertake have to be value-oriented and have to be wise,” Airports Fiji executive chairman Faiz Khan said.

“One of the areas that I saw lacking in the past is that yes we were making profits but the CAPEX was not wisely managed.

“When you have CAPEX management….it will not affect your profit and loss in that particular year but it will seriously affect your cash flow.

“So that’s fundamentally the main driver of the cash flow which is significantly increasing.”

Mr Khan said this was historic as in previous years dividend to Government was only averaging $1 million.

“So this has been taken into another level. Of course it has come from the fact that the profits have improved and also from the fact that our cash flow positions have been improved.

“I must say that the revenue restructures we have undertaken have no part to play in the profit and cash flow positions that we see for 2012 and 2013.”

Mr Khan said the revenue restructures undertaken in previous years were not accounted for in both financial year results . However will be realised in the second half of 2015.

Mr Sayed-Khaiyum commended Mr Khan for his dedication and employees for their hard work.

“For a number of years we languished with the reforms that took place back in the 90s,” Mr Sayed-Khaiyum said.

“Following the appointment of the Bainimarama Government, we’ve been slowly working fixing up many of the fundamental issues that existed as problems with AFL.”

These, he said, involved the airport concession leasing which were strongly being influenced by politics resulting in tenders being withdrawn.

“So concession that we should have been getting we’re now getting. We now have a couple of the concessioners…who will be paying about $12 million.”

This is he added will increase to $35 million following the completion of the Nadi International Terminal Modernisation Project.

Previously, Airports Fiji only received $8 million from concessioners.

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