KCH receives K63mil dividend

By LULU MAGINDE
KUMUL Consolidated Holdings (KCH) yesterday received more than K63 million as dividend payments by two state-owned entities (SOEs).
KCH, as the shareholder received K42,130,464 from the Motor Vehicle Insurance Ltd (MVIL) and K20,921,465 from PNG Ports Corporation Ltd (PNG Ports), as dividends for the 2020 financial year. MVIL managing director Michael Makap said the Coronavirus (Covid-19) pandemic had impacted all areas of society but people had been resilient and continued to do business and go about their lives.
He said Covid-19 had impacted some of the government’s other businesses such as Air Niugini with MVIL giving K20 million to the carrier in June last year.
MVIL’s dividend this year was significantly lower compared to the past two years, mainly because of Covid-19.
The company’s other major investments had been hit because of the restriction of trade, affecting investment income.
“We capped off the year 2020 with K84 million as our net profit with our budget of K57 million and 50 per cent of that is K42 million,” he said.
PNG Ports board chairman Kepas Wali said the dividend payment was a result of prudent financial management and operational practices within PNG Ports.
From the fiscal years of 2019 to 2021, taking into account taxes and dividend payments, in addition to the dividend payment yesterday, PNG Ports has paid a total of K126 million to the Government to help cushion the effects of the pandemic.
“Even though the current economic conditions are tough, we have performed well and our cash flow for this year is positive,” Wali said.
Meanwhile, State Enterprises Minister William Duma welcomed newly appointed KCH acting chairman Moses Maladina and acting managing director Dr David Kavanamur.
Maladina thanked PNG Ports and MVIL for the dividend payments and commended the two SOEs for their efforts given the ongoing pandemic.