PNG Ports pays K16.2 million dividend to Govt
PNG Ports Corporation Limited (PNG Ports) announced an after tax profit of over K42 million for the 2017 financial year, combined with a clean audit report for the same year.
Chairman, Sir Nathaniel Poya, said as a result of the 2017 and the 2018 financial year performances, his Board has approved the payment of over K16 million to the state in dividends – K10.6 million for 2017, which represents 25 per cent of the total after tax profit for the year and K5.6 million, again 25 per cent of the progressive unaudited profit after tax for 2018.
“Management has also advised the board that the cash flow situation for the reminder of the year (2019) demonstrates that the cash position of the business is relatively healthy and that the payment of this dividend should not affect its operations,” Sir Nathaniel announced.
Sir Nathaniel attributes the healthy position of the company, combined with the positive results over the last two years and into the future to the stringent cost cutting measures that have been imposed as well as prudent management of the business by management and staff of the state owned entity over this period.
“The future looks good for PNG Ports, given the new and improved services provided at our key ports at Port Moresby Motukea International Port and Lae International Port, the on-going rehabilitation of port facilities throughout the network in the country under the Community Service Obligation Program and improvements made to the financial management of the company,” Sir Nathaniel said.
“We are confident our latest investments into industrial real estate in Lae and Motukea (Port Moresby) will also bring in additional revenue in the years ahead.
We are also optimistic that the Papua LNG Project offers many opportunities for us and already we are in discussion with Total (PNG) Limited to provide port logistic services to the project.”
He said there are other multimillion kina resource projects that are coming on stream in the country soon that will offer business opportunities for PNG Ports.
“We have a new Government that has set the right direction to grow the economy and we intend to be in the thick of things to ensure that PNG Ports supports this Government in delivering to the people of this country and economy.
Along the way, we will grab every opportunity that comes up to enhance our business and maximise the returns to the state and the people of Papua New Guinea,” Sir Nathaniel said.
Sir Nathaniel said Papua New Guinea is going through challenging times and like any business operating in the country, PNG Ports has faced its share of the challenges, however prudent management decisions has resulted in positive results.
“PNG Ports financials have been audited up to 2017, the audit accounts for 2018 are under review by the auditors before a final report is provided to the company.
“However, significantly, our external auditors have advised that we can make an interim dividend payment for 2018 as long as PNG Ports is making profit,” Sir Nathaniel says.
The dividend payment is in response to a request from Kumul Consolidated Holdings to PNG Ports early this month (June) to pay the dividends for the 2017 financial year and a further interim dividend for the 2018 financial year.