By GYNNIE KERO
KUMUL Petroleum Holdings Ltd remitted more than K4 billion to the Government between 2014 and 2018, according to board chairman Andrew Baing.
It included dividends, return of capital, Union Bank of Switzerland (UBS)-related cost, taxation and other corporate social investments.
Baing told the company’s annual general meeting in Port Moresby yesterday that the K4.2 billion was remitted to the State on the back of a total revenue of K5 billion earned by Kumul Petroleum during the same period.
The K4 billion is broken down as: Dividend K1.33 billion; Return of Capital K1.16 billion; Oil Search Collar related cost K1.13 million; Corporate Tax K300 million; Government Support K73 million.
Baing said the figure represented 78 per cent of cash available to Kumul Petroleum from the PNG LNG project and other revenue sources such as Hides Gas.
The balance of the funds were reinvested over the five years in Kumul Petroleum, including the Kumul Petroleum Academy for Oil and Gas Skills Development, Port Moresby 58MW Gas-Fired power station under NiuPower, reinvestment in existing or discovered and known oil and gas fields, Hela and SHP rural electrification programme, staff development and education, student sponsorships for university studies, graduate development programmes, salaries and wages and consultancy.
Baing said Kumul Petroleum’s remittance represented more than three times the total tax paid by the PNG LNG project to the Internal Revenue Commission over the same period.
Kumul Petroleum’s net profit last year was K595 million but it expects a better result this year.
Total dividend paid last year was K300 million or more than 62 percent of the net profit.
There will be a dividend of K100 million for this financial year.
Prime Minister James Marape who was also at the meeting said Kumul Petroleum would no longer invest in greenfields as per a National Executive Council decision.
“Kumul must focus on making money, reconfigure its investment plans and become a bigger equity player,” he said.
By GYNNIE KERO