Fiji Ports Corporation Hands Over $16 Million Dividend To Its Shareholders
The Fiji Ports Corporation Limited (FPCL) yesterday presented a dividend of $16,239,287 to the Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum.
This dividend will be shared among its shareholders including Government, Sri Lanka company Aitken Spence and Fiji National Provident Fund (FNPF).
FPCL board of directors’ chairman, Shaheen Ali, said the dividend will be distributed as follows;
- Fiji Government (Ministry of Economy) owns 41 per cent of the shares $6,658,107.67
- FNPF owns 39 per cent of the shares $6,333,321.93, and
- Aitken Spence owns 20 per cent and will get $3,247,857.40
He stated that FPCL Group Net Profit after Tax (NPAT) of $28,041,359 represented a 6.4 per cent increase from 2017 reported NPAT of $26,345,307.
Mr Ali said: “We are happy to announce that FPCL’s performance for the 2018 financial year has been encouraging, at the back of hard-work by management guided by the board’s strategic focus ultimately resulting in higher profits.
“FPCL’s performance for 2018 has been strong, despite the adverse impact of Cyclones Keni and Gita on the operations, in the first quarter of the year.
“The cyclones had a direct impact on the number of vessels calling into Ports.”
The performance is mainly attributed to:
- Increase in cargo throughput, especially in the later part of the year
- Strengthening earning capacity in key services, such as tug and pilotage,
- Significant increase in interest income – due to prudent cash management strategies
“As far as the Fijian Government interest is concerned, the dividends has increased by in absolute terms, by $4,579,159.62, since divestment of FPCL in 2015.
“This is a clear indication that the objectives of divestment, to increase efficiency, profitability and provide better services to the Fijian people is being achieved.
“The increased dividends and increased profits have been a direct result of the conducive business environment created by the Government.
“We have witnessed an unprecedented level of positive economic growth, for almost a decade. This has led to increased economic activity and business, which has resulted in an increase in cross-border trade, contributing to increased revenue for our maritime ports,’ Mr Ali said.
As a Board, he said their plan was to continuously review the operations of FPCL.
“This with the aim of maximising the returns to Fiji Ports and its shareholders. We need to ensure that profitability and efficiency (the two cornerstones for ports business) increase in the long term.
“We realise that we also need to be aligned to international best practices and standards and deliver quality service to our international clients and the Fijian people.”
Ports
Mr Ali said in this regard, both Suva and Lautoka ports have recently passed the International Ships and Ports Security (ISPS) code compliance audit (conducted by the United States Coast Guard).
This is essential for Fiji to continue its status as the hub for trade, transportation and logistics.
“In order to ensure that the Ports are able to serve in an increasingly dynamic and competitive business environment, a five-year Strategic Plan has been approved and will be implemented by FPCL.”
He said some of the strategies relating to infrastructure development in this financial year, included:
- Implementation of Vessel Traffic Management System;
- Purchase of pilot boats;
- Infrastructure upgrade of Suva and Lautoka Ports based on asset conditioning assessment and
- Identification of strategic alliance option for Fiji Ships and Heavy Industries Limited.
- Mr Ali said FPCL would continue to contribute to Fijian growth story.
Attorney-General
Mr Sayed-Khaiyum has encouraged the board to continue to think outside the box.
“The reality is the economy is growing.
“There will be a lot of cargo coming in, that is the demand of goods.”
He acknowledged the board and the chair, and also acknowledged the investors FNPF and Aitken Spence for their vision to actually invest in this particular investment.
He thanked Aitken Spence for having faith to investing in Fiji.
He also thanked the management for FPCL who have been very much focused on Fiji Ports Terminal Limited.
“The dividends of course are good and there is an enormous opportunity for growth, and we have already seen the substantial amount of growth.”
He said not all profits declared were dividends, the company needs to return a certain amount of profits to invest for the company.
Feedback: lusiana.tuimaisala@fijisun.com.fj
