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Tonga Power pays $2M dividend to Government

Nuku'alofa, Tonga

Mr Carl Sanft presents a $2 million pa’anga dividend to the Minister of Public Enterprises, Hon. Poasi Tei. Tonga Power Ltd., 8 December 2015.

The Chairman of Tonga Power Limited Board of Directors, Mr Carl Sanft with TPL Board members, Mr ‘Aisake Tu’iono, Dr. Nailasikau Halatuituia, Mr Sione Taione, Mrs Fuiva Kavaliku, and the CEO of Tonga Power Ltd Mr Robert Matthews, presented to the Minister of Public Enterprises, Hon. Poasi Tei, a cheque of $2 million pa’anga. This is Tonga Power’s dividend declared for 2014-2015 during its Annual General Meeting on Tuesday, 8 December 2015 at Tonga Power’s conference room. 

This is the highest dividend ever paid from Tonga Power Ltd to the Government of Tonga since its operation, and an increase from June 2014 by 27 percent from $1.5 million pa’anga to $2 million pa’anga.

Over recent years, the company has also reduced its electricity tariff substantially. Since July 2014 to June 2015, the electricity tariff for all of Tonga has decreased by about 13% (or 11.5 seniti), from 91.7 seniti per kWh to 80.1 seniti per kWh. Today, the current electricity tariff is 78.68 seniti per kWh which came into effect on 1st December 2015. 

Hon. Poasi Tei expressed his appreciation on behalf of the Government to Tonga Power Limited for the dividend declared today for year ending 30 June 2015. “This is consistent with the Group’s long term value objective under its dividend policy to distribute solid profits to its shareholder, the Government of Tonga.” 

The Minister also thanked the Board of Directors, CEO and the management of Tonga Power Ltd for the dividend payment that was presented. “This is a record dividend,” the Minister said. The Dividend was delivered in spite of the difficult time the company faced during the year by passing on a lower tariff rates to its customers while meeting the Government of Tonga’s core purpose to reduce the tariff and Tonga’s vulnerability to oil price shocks, and achieve an increase in quality access to renewable energy services. 

Hon. Tei also thanked Tonga Power Ltd. for the successful acquisition and sound management of the Tonga Gas Ltd. and HomeGas Ltd. businesses. Tonga Gas Ltd. and HomeGas Ltd. are subsidiaries of Tonga Power Ltd. who paid a combined total of $200,000 as a dividend in its first year of operation to Tonga Power Ltd. The presentation was made during its Annual General Meeting on Tuesday, 1 December 2015. 

Mr Sanft conveyed to the CEO, Mr Robert Matthews, TPL management and Board of Directors his sincere appreciation for all their hard work over the year and thanked the shareholding Minister, Hon. Tei and his CEO for the Ministry’s continued support. 

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Tonga Power Ltd., Board of Directors and management team at a dividend presentation. Nuku’alofa, 8 December 2015.