SINPF General Manager on Funds Financial and Operational Performance
The CEO/ General Manager of Solomon Islands National Provident Fund, Mr. Mike Wate described the crediting rate of 4% is depicting the Funds financial and operational performance for the twelve months period ending 30th June 2024.
GM Wate was speaking at the occasion to formally announcing of the Crediting Rate to members for the Financial Year 2023/2024 at the Heritage Park Hotel in Honiara.
The Fund’s draft financial performance softened in the year ending 30 June 2024, recording a gross income of $ 252,225,456. This is down from last financial year audited gross income of $354,658,863. The reduction was primarily driven by the reduction of our listed and unlisted equity fair value revaluation gains from $147,340,381 recorded in 2023 to $35,841,902 recorded in the 2024 financial year.
You may recall that all our traded market listed equity prices and the international currencies they are denominated in, are revalued on their market traded prices on 30 June of each year. For our unlisted domestic equities, unlisted international equities and domestic investment properties, these are also revalued annually by external international and national independent competent valuers. For our unlisted equities (South Pacific Oil Limited, Solomon Telekom Company Ltd, Heritage Park Hotel Ltd etc. are valued by international accounting firm Deloittes based out of Australia).
After adjusting for operating and member expenses of $108,804,837, the Fund has an operating surplus of $143,420,619 that is available for crediting to members today.
He further explains on Key Drivers of our 2024 Financial Performance, we had received dividends worth more than $114 million from the following; South Pacific Oil Limited ($60,000,000), Solomon Telekom Company Limited ($42,821,028), BSP Financial Group Ltd ($8,352143), UBS Australian Share Fund ($2,210,399) and Solomon Islands Submarine Cable Company Ltd ($842,648).
This is a reduction on the previous 2023 financial year level of $ 123,181,180 and mainly due to movement in foreign exchange rates and changes to one of our key equity investment company dividend policy.
Our interest income from Solomon Islands Government short- and long-term debts surged by more than 47% on 2023 level of $17,551,384 to reach $25,788,584 in 2024. As an investment asset class Solomon Islands Government debt papers has increasingly contributed strongly to the Fund’s income in recent years.
Interest income from our shareholder loans to our national investee companies Solomon Telekom Ltd ($4,111,9556), Heritage Park Hotel Ltd ($2,678,621), Soltuna Ltd ($997,846), Solomon Finance Ltd ($277,007), and SI Submarine Cable Company Ltd ($316,895) have also contributed strongly to the Fund’s 2024 income performance.
The Fund’s recent 2023 loan to our national carrier Solomon Airlines Ltd has started repayments contributing strongly to our 2024 income with an interest income of $1,251,315.
Our property rental income was basically flat in 2024 at the same level of around $ 34 million received from tenants leasing our investment properties. Our 2 key property asset earners are the ASB ($14,169,510) and the executive apartments ($8,939,880).
Attending the occasion were the Supervising Prime Minister and Minister of Finance and Treasury, Hon Manasseh Damukana Sogavare, Permanent Secretary of the Ministry of Finance & Treasury, Mr. Mckinnie Dentana, Acting Governor of the Central Bank of Solomon Islands, Mr. Raynold Moveni, Deputy Chairman and Members of the SINPF Board, CEO and Managers of SINPF subsidiaries – South Pacific Oil Limited, Solomon Telekom Company Ltd, Bank South Pacific Limited, Heritage Park Hotel Limited, Solomon Islands Submarine Cable Company Limited, Soltuna Ltd, Solomon Housing Ltd and Solomon Finance Ltd, Chairman and CEO and Solomon Islands Chamber of Commerce and Industry Presidents of Key Unions in Solomon Islands.
[For more in-depth information on Funds Financial and Operational Performance, please refer to GM’s full speech]
