SUNBIZ

AFL Hands Over $30m Dividends To Government

Airports Fiji Limited, a state-owned enterprise, yesterday handed over $30 million in dividends to Government. Of this, $19.3 million was for the 2016 financial year while $10.7 million was for
28 Jul 2016 11:08
AFL Hands Over $30m Dividends To Government
rports Fiji Directors Ratu Wiliame Katonivere, Geoffery Shaw, Ministry of Finance Permanent Secretary David Kolitagane and AFL Executive Chairman Faiz Khan with celebrating staff at Nadi Airport. yesterday. Photo: WAISEA NASOKIA

Airports Fiji Limited, a state-owned enterprise, yesterday handed over $30 million in dividends to Government.

Of this, $19.3 million was for the 2016 financial year while $10.7 million was for the 2015 financial year. AFL had already paid out $7.5 million interim dividend for 2015 a year ago.

Thus, the total dividend payout for 2015 comes to $18.2 million.

In any case, the amount of declared paid by AFL is quite phenomenal for any state-owned entity and reflects the successful reforms carried out.

Airports Fiji executive chairman, Faiz Khan, said: “It highlights a significant improvement in our performance in terms of our finances and cash propositions.

“We had record-breaking financial results for 2015. We had an operating profit before tax of $46 million.

“Importantly our cash flow position is very healthy we had about $60 million in cash equivalence at the end of the financial year of 2015.

“That has continued to steadily grow despite the fact we are undertaking major capital projects the main one being the Nadi Airport terminal modernisation project.

“In addition, there are other capital projects that we are undertaking simultaneously.”

Mr Khan said it shows that AFL has been prudently managing its finances and despite the revenues and profitability figures being record numbers for 2015, the operating expenditure for 2015 was lower than in 2014 by about one per cent.

“In fact the operating expenditure for 2015 is the lowest that it has been for the past five years,” he said.

 

Milestone achievement

In receiving the cheque, Permanent Secretary for Public Enterprises, David Kolitagane, said this was not the first time AFL has provided very high dividends to the government.

However, he emphasised this was the highest so far that the AFL has given.

“With all the ongoing reforms in Government not only in government services but also public enterprises, we will continue to be naturally high performers,” Mr Kolitagane said.

 

What led to the results?

Mr Khan highlighted the significant contributor to the phenomenal results of 2015 was the restructure in both their aeronautical and non-aeronautical revenues.

“Last year we had a significant increase in our aeronautical revenues and we did also go out to the market to retender all of our spaces at the Nadi International Airport,” he said.

“So all of the spaces that are currently occupied after the upgrades are completed are at a much higher rate compared to what tenants have paid in years gone by.

“That’s where the significant increase is coming from. We’ve always said that Nadi International Airport is the financial engine for growth for all of the 14 airports that we look after.

“With the money that we make from the operations in Nadi, we are able to do upgrades at Rotuma, Matai and Nausori for example.

“Nadi is a contributor to a very large extent, the amount of money that Airports Fiji Limited contributed towards its loss-making assets in Nausori and particularly in the 13 outer-island stations.”

Mr Khan said in addition to the $30 dividends to the Government, there’s another $3 million for social obligations in order to look after their other stations.

 

Edited by: RACHNA LAL

Feedback:  waisea.n@fijisun.com.fj

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