PNG Ports Corporation has reported a profit of K83 million for the full year of 2019.
This permitted Kumul Consolidated Holdings (KCH) to receive a full-year dividend payment of K21 million, which was finalized yesterday with the presentation of K11.4 million to KCH as a second payment following the first part of K9.6 million paid in November.
Chairman Kepas Wali said PNG Ports had had a challenging two years, with the Covid-19 impacting the majority of its business.
“We saw a decline in shipment and cargo through our ports, but because management instituted certain stringent measures in management and costs, PNG Ports has been able to maintain a healthy bottom line,” he said. “Despite the Covid-19, we have been able to maintain the ports operationally. Management quickly introduced certain protocols at the ports when the pandemic hit to keep the ports operating. There wasn’t any stage that the ports were closed down. They (PNG Ports Corporation) were able to separate the operation of the ships from the shore so shipping continued and cargo was still transmitted through our shores.”
Wali also explained that the dividend was based on a loan agreement they had with Bank South Pacific (BSP), which stipulated that only 25% of profits could be paid out as dividends. The dividend payment for 2019 was timely, according to KCH managing director Isikeli Taureka, since the money would be injected into other state-owned enterprises (SOEs) that were struggling during the Covid-19 period.
“One of the things we appreciated is that apart from the major ports, most of the secondary ports around the country are at least recovering cost and breaking even.”
The dividend payment was agreed by State Enterprise Minister William Duma.
PNG Ports, according to Duma, has been a reliable performer over the years.
He stated that the K21 million spent in 2019 was a good effort.
“We need every toea and the K21 million is a lot of money and in times like these millions of kina makes a big difference,” he said.
PNG Ports Corporation has also paid the government a total of K43 million in royalties.
