ACCEPTANCE OF SOUTH PACIFIC OIL LIMITED 2017 DIVIDEND

 

South Pacific Oil Limited (SPO) Board Chairman, Mr Gideon Zoleveke Jr. 

Members of the SPO Board

SPO General Manager, Mr. Carson Corowa
SPO
Chief Finance Officer, Mr. Kunal Nandan
SPO Management and
Staff

SINPF Board, Management, and Staff
Invited Media

An hour or so ago, South Pacific Oil Limited (SPO) held its Annual General Meeting (AGM) in which the AGM approved a total Dividend amounting to SBD 73 million for the 2017 financial year that ended on 31 December 2017.

The Solomon Islands National Provident Fund Board is the sole recipient of this approved distribution.

Today (23 March 2018) I am honoured to receive this dividend of $73 million on behalf of my NPF board, management, staff, and members of the Fund. This dividend will be paid out from the 2017 audited profits for the Company.

At the same time last year (2016 Financial Performance), the Company had paid a dividend of

$61 million. Today's payout shows an increase of SBD 12 million for the 2017 financial period.

This is the highest ever dividend so far that has been declared and paid in cash by the Company in its last 11 years of operation, to its shareholders.

Just to recap, South Pacific Oil Ltd incorporated in November 2016 started operation in late 2006 when it bought off the assets of Shell Company Limited when they decided to exit the Solomon Islands.

The Company is now 100% owned by the Solomon Islands National Provident Fund and is one of the biggest and is the best performing equity investment of the fund, averaging an annual rate of return of 35% per year over the past 11 year period. As a result of this impressive financial performance over the 10 years, from an initial at cost investment of $42.1 million in 2006, the value of our shares in SPO has now reached more than $840 million.

The SINPF Board, Management and Staff and members are proud of this investment in SPO as the Company continues to grow its market share and presence in the outer provinces in line with its slogan "fuelling our Islands"

Over the 11 years, SPO has paid to the Fund total dividends amounting to SBD 396.2 million. From this SBD 354.1 million was paid to the Solomon Islands National Provident Fund while the SBD 42.1million was paid to the minority shareholder from 2008 till 2013.

With the 2017 dividends now declared and paid, this would increase SINPF return from $354.1 million to $427.1 million for the last 11 years in terms of Dividend Income. The total original investment of $196 million paid for NPF's 100% shares in SPO has been recovered in full, with a realised to date profit of $231.1 million.

As a shareholder we are also pleased to receive a clean financial audited report recording another year of growth for the company (SPO) and extremely happy to see the company maintaining a positive track record in these challenging economic conditions.

In line with the strategic objectives set by the SPO Board, in 2017 we saw SPO enter a phase of transformation in which SPO examined its business model to ensure a best fit in the Solomon Islands fuel market. In doing so, SPO have been able to hone their strategy to ensure sustainability and maximize value for both the customers and shareholder-SINPF.

Looking ahead, we know that the Company remains committed to its customers and other stakeholders in the market with its focus remains to be an energy solutions provider in the country, and committed to work with strategic partners to ensure that fuel gets delivered to provinces in an economical manner so as to reduce the price of fuel in the provinces.

In closing, on behalf of the SINPF Board, Management, Staff, and Fund Members I sincerely thank the SPO Board, SPO Management, and SPO Staff for achieving the best ever profit recorded at the end of its 11t h year in business.

Please keep up the excellent work and outstanding efforts to make and continue to sustain SPO a great nationally owned profitable company.

God bless SPO, God Bless SINPF, and God Bless Solomon Islands

SINPF PETER JAMES BOYER
CHAIRMAN

 

SINPF Board Room, 23 March 2018

 


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