Monday, February 20, 2012

PNG Ports pays K15 million to state


The PNG Ports Corporation has paid K15 million dividend to the Independent Public and Business Corporation, The National reports.
 IPBC managing director Thomas Abe said since 2007, no state enterprise has paid any dividend to the corporation.
The PNG Ports dividend will be paid in three instalments of K5 million per month.
The first K5 million was paid last Friday.
Abe said the two main aims for state enterprises to pay dividends were to instil commercial discipline and practice to make them efficient, and to make a return on investment to their shareholders - the people of PNG -  through the government.
“Public enterprises must remember that they are owned by the people of PNG who fund them through millions of kina a year in taxes, licences and charges,” he said.
“They are entitled to get a return on their investment just like any other shareholder-investor.
“These dividends will go to help meet the cost of the government’s objectives.”
Acting PNG Ports chief executive officer Stanley Alphonse said the company was able to make dividend payments on the back of some extraordinary trading results last year.
“The shipping business is based on derived demand and the past performance of the economy –  driven by the hydrocarbon and resources sector –  has enabled our company to make this announcement,” he said.
“That level of profitability might or might not be repeated as it is contingent to domestic and global economic conditions including legislative and regulatory pressures.”
Alphonse said PNG Ports was committed to continuing port modernisation and improvement, which started in Lae and Port Moresby with the support of its shareholders and stakeholders.
Abe said the dividend was to partly recompense IPBC for a dividend payment it made to the consolidated revenue fund in January of K50 million.
The early dividend payment was based on an agreement between the IPBC and Treasury department in return for the government’s commitment to fund a shortfall of K900 million for the state’s equity funding of the PNG LNG project.


  1. Anonymous10:26 AM

    Brian Riches ???? I didn't see his name being acknowledged.

  2. Anonymous3:44 PM

    He is the one who brougth this far and made PNG Ports a reputble SOE.

    Don't know why he is being sacked and further not being acknowledged for his achievements.

    Former employee