The Chairman of the combined utility board, Mr Carl Sanft presented a cheque of $7,319,219 to the Minister of Public Enterprises, Hon. Poasi Tei as the utilities combined dividend and tax for the 2016/2017 financial year. This is a record dividend and tax and the highest to be paid to the shareholder, the Government of Tonga by a Public Enterprise.
From this declared amount, a total of $4.38 million was declared as dividend to the Government of Tonga which is 62 percent of the Net Profit After Tax for this financial year. The Total Income Tax Payable per annum to Government was a total of $2.9 million, and the overall dividend and Total Income Tax Payable to Government for the 2016/2017 financial year is $7,319,219.
The dividend declaration was presented to Government during the common utilities Annual General Meeting on Friday, 10th November 2017 at the Tanoa International Hotel, Nuku’alofa.
Tonga Power recorded a Net Profit After Tax of $5.53 million for this financial year compared to $5.49 million last year 2015/2016.
The total payment to Government for 2016/2017 from the dividend presented on Friday by Tonga Power Ltd was $5.8 million compared to $4.17million of last year.
This year also presents a record dividend declared to Government from Tonga Power Ltd and its subsidiaries (Tonga Gas Ltd and Home Gas Ltd) of $3.3 million compared to $3.286 million in 2016. This is also a record financial year for Tonga Power with the highest total income tax payable of $2.5 million to be paid to Government compared to $0.87 million last year.
Overall, Tonga Power’s dividend and income tax payment to Government since 2008 including this year is a total of $14.6 million.
Tonga Water Board determined a total of $1.03 million as the actual amount that the company paid out to the Government of Tonga as dividend, compared to $1.027 million of last financial year. The company produced a Net Profit After Tax of $1.2 million as compared to $1.4 million of last year with a total contribution of $457,928 as income tax payment.
This marks the third year in progression that the company has achieved net benefit from its operations, declaring a dividend of $50,000 again this year. Waste Authority Ltd achieved a net profit after tax of $284,526 for this financial year in comparison to $229,652 for the 2015/2016 financial year.
In his address to the gathering, Hon. Poasi Tei said that the record dividend payment is among the major achievements of the common utilities and the gas companies. This portrays the positive outcome of having one common utility board that enable and encourages the companies to use excess capacity to share services, improve efficiencies and reduce costs with a strong emphasis on improved service delivery and profitability.
Following the combined utilities dividend presentation, the Honourable Minister acknowledged the excellent financial results for the year delivered by the Chairman and the Board Members, Chief Executive Officers, Managements and Staff. He also thanked the Board for supporting the Government’s initiatives and looked forward to working together with the utilities towards another successful year.