Representatives from Aitken Spence PLC,
Representatives from Fiji National Provident Fund,
Representatives from the Ministry of Economy,
Board of Directors of Fiji Ports Corporation Limited,
CEO, Fiji Ports Corporation Limited,
CEO, Fiji Ports Terminal Limited,
Good Afternoon to you all
This is the first time we are having this Dividend distribution event virtually. I would like to extend our appreciation to everyone for taking time out to link up this afternoon.
In fact, as a sign of a modern Fiji Ports Corporation Limited (FPCL), staff are able to connect digitally to today’s event. And some through the mobile devices provided by FPCL.
Ladies and Gentlemen,
The year Twenty-twenty has been a challenging one, not only for Fiji but the entire globe, as the COVID-19 pandemic rapidly gripped the World. As a company, FPCL faced its share of difficulties in containing COVID-19, whilst effectively managing its day-to-day operations.
Last year was also the second year of successful implementation of the 5-Year Strategic Plan, which provided the necessary resilience and sustainability of performance.
Despite the challenges, FPCL recorded a Net Profit After Tax (NPAT) of $22.73 million, for the year ended 31 December 2020, whilst the Group’s NPAT was $22.3 million.
The recorded profit of the Company is encouraging, despite the global economic downturn and slowdown of international trade. Total Income of FPCL decreased by 12 percent or $7.7 million in 2020 when compared to 2019. The decrease is attributed to restriction of entry into Ports of international Cruise ships from March 2020, and disrupted cargo movement.
These global events resulted in:
- Decrease in Marine Service Charges by 8%.
- Decrease in Dockage and Wharfage revenue by 21% and 13%, respectively.
Ladies and Gentlemen,
The pandemic also severely affected FSHIL operations, with clients from the region unable to bring their vessels for docking.
Through prudent management, expenses of FSHIL were reduced by 5 percent compared to 2019. Savings were realised in utilities charges, reduction in overtime hours, reduction in travel costs and priority repair and maintenance works.
The timely management of expenditure to combat the decline in revenue and minimise operational costs, had assisted the Company in achieving profitability.
Ladies and Gentlemen,
The Company’s financial position remains strong for the year ended 31 December 2020. When compared to the same period last year, total assets increased by 2 percent due to better cash management and stringent debt-collection policies.
The FPCL also continued investment in capital projects in the year and used the reduced volume of vessels as an opportunity to upgrade infrastructure. Approximately $11.1 million was invested in capital projects.
Ladies and Gentlemen,
The FPCL, despite the challenges, has managed to maintain profitability and based on the performance, a dividend of $13,637,709 has been announced. This is a 170% increase from the pre-divestment period, or 2015.
The dividend of $13,637,709, presented today will be distributed as follows:
As far as the Fijian Government’s interest is concerned, the dividends has increased in absolute terms, by $4,344,092, since divestment of FPCL in 2015. In addition, FNPF is also getting almost an equal share of dividend, doubling the benefits to Fiji as a whole.
This is a clear indication of the benefits, the divestment has brought to the Fijian Government and the Fijian people.
Ladies and Gentlemen,
Now further good news regarding bonus payout to staff.
Due to the fact that FPCL was able to maintain profitability, today we are announcing a bonus payment of $217,892.62 to 155 staff of FPCL and FSHIL, despite the challenges the year 2020 presented. The bonus is 7 percent higher than 2019. At a minimum each staff will receive $500.
Bonus payment is based on the Performance Management System, which is also linked to profitability of the Company.
Ladies and Gentlemen,
Some other key achievements for FPCL in 2020, included:
- In order for staff to continue work remotely, the FPCL put in place a business information infrastructure. A total of 123 staff have been provided mobile phones of which 70 percent have been fully paid for by FPCL.
- Successful certification of the Company’s Integrated Management System (IMS), which conforms:
- ISO 9001:2015 Quality Management System.
- ISO 14001:2015 provides for systematic management of environmental responsibilities.
- ISO 45001:2018 Occupational Health and Safety provides a management system for a safe and healthy workplace.
- The development and implementation of the online Berthing Application. The whole process was built in-house to cater for all local and international vessels, with the roll-out taking place in phases. The System is in line with the FPCL Go-Green initiative, to work smarter by harnessing technology wherever possible.
It also promotes increased digitisation and provides the means for continuous improvement through further analysis and reporting. It increases efficiency by saving resources, time and money, and is environmentally friendly.
- Investment of $2.2 million to acquire a modern Pilot Boat “Senitakali”, which has improved FPCL’s capacity to carry out piloting in outer ports of Wairiki, Levuka, Dravuni, Denarau and Yasawa Islands.
Ladies and Gentlemen,
The Board and Management of FPCL, has a very optimistic outlook for the year ahead. As Fiji is still dealing with the second wave of the COVID-19 pandemic, FPCL has improved port security protocols and put in measures for staff, public and other stakeholders to comply.
Ladies and Gentlemen,
The FPCL will continue to focus on the implementation of its 5-Year Strategic Plan. Some of the goals include:
- Continuing rehabilitation at various wharves based on the risk matrix.
- Developing computerised Asset Management and/or Maintenance Management System.
- Implementing the Vessel Traffic Management System and Automated Revenue System.
- Installation of solar system at local wharf in line with the Green Port Master Plan.
- Completing Lautoka Port Yard 3 to increase port capacity.
- Continuing to comply with the International Ship Port Facility Security (ISPS).
- Implementation of the 5-Year Green Port Master Plan.
- Supporting the Suva Port relocation project.
Ladies and Gentlemen,
At this juncture, I wish to thank the Staff, Management and the Board of Directors of FPCL for the good performance in 2020.
I want to congratulate the Management and thank the staff on achieving 100 percent first dose of COVID-19 vaccination. And I am sure that the Company will achieve full vaccination soon.
I want to say that you have contributed towards achieving the national target of at least 80 percent of the eligible population being fully vaccinated. [As of today (13/8), the national vaccination drive has achieved 90.5 percent first dose and 35.1 percent fully vaccinated.]
And I look forward to your continued commitment to our overall vision of being the best shipping Port in the Region.
On behalf of all of us, at Fiji Ports, we would like to convey our special thanks to the Hon. Attorney-General and Minister for Economy, for the ongoing support we readily receive.
Vinaka vakalevu and thank you.