Dividend could be less: Sonk

Business, Normal

The National, Monday July 20th, 2015


NATIONAL Petroleum Company PNG (NPCP) predicts that dividend to the State for this year may be less compared to end of last year. 

Managing director Wapu Sonk was responding to The National on the company’s outlook for this year. 

NPCP last week made a half yearly dividend payment of K86.4 million to the Government. 

It paid K415 million to the Government in November last year.  Sonk said the recent payment was a reflection of the decline in oil price and challenges that NPCP was facing. 

He said the state-owned entity would also have some commitments in terms of expanding its investment portfolio.

“The K415 million last year was paid to Government as special dividend because we didn’t expect to make that kind of revenue because the project production was expected to start in November,” Sonk said. 

“We had six to seven months of revenue so we had to pass it onto Government. 

“That’s why it was higher and at that time the oil price was slightly higher as well.

“But now (this year) we are in a different environment so it’s hard to tell.

“We look at our position and because Total project (Papua LNG) and train three expense and other commitments are there. For NPCP to also participate, we cannot expect the similar type of revenue, dividend for 2015. 

“It will be slightly less.

“But we’ve already paid K86 million now, similar amount or more before we close the books at end of the year. 

“We should be paying the other half by first quarter of next year,” he said. 

Meanwhile, the Independent Consumer and Competition Commission in a recent release for this month’s fuel price stated that price would continue to decline next month because of global supply again increasing and demand not increasing fast enough to relieve the over-supply.