DHI con­trib­utes 22% to gov­ern­ment rev­enue last year

The ma­jor por­tion of div­i­dends was from Druk Green Power Cor­po­ra­tion fol­lowed by Bhutan Power Cor­po­ra­tion

Business Bhutan - - Money - Alka Kat­wal

Druk Hold­ing and In­vest­ments (DHI) con­trib­uted Nu 6,248.47mn in the form of taxes and div­i­dends to the gov­ern­ment, which con­sti­tuted 22% of the to­tal do­mes­tic rev­enue last year, ac­cord­ing to the an­nual na­tional bud­get re­port.

DHI earned Nu 7,383.74mn as in­come of which 97% was from div­i­dend in­come from its sub­sidiaries. The to­tal in­come of the com­pany in­creased by 17.4% from Nu 6,291.27mn in 2015 to Nu 7,383.74mn.

The ma­jor por­tion of div­i­dends was from Druk Green Power Cor­po­ra­tion (DGPC) amount­ing to Nu 5,104.36mn fol­lowed by Bhutan Power Cor­po­ra­tion (BPC) with Nu 1,281.65mn.

Ac­cord­ing to the bud­get re­port, div­i­dend re­mit­tances from DHI to gov­ern­ment in­creased by 5.32% with Nu 4,067.54mn in 2016. This is due to in­crease in prof­itabil­ity of DGPC, BPC and Bhutan Tele­com which con­sti­tutes 95% of DHI’s div­i­dend in­come.

Taxes paid by DHI in­creased by 18% from Nu 1,855.8mn in 2015 to Nu 2,180.93mn in 2016.

The re­port also states that DHI’s ex­pen­di­ture in­creased by 6.6% from Nu 112.75mn in 2015 to Nu 120.25mn in 2016. The in­crease was largely at­trib­uted to rise in em­ployee cost which grew by 20% over the pre­vi­ous year. Over­all, DHI earned a profit after tax of Nu 5,082.8mn, record­ing an in­crease of 17.6% as com­pared to 2015.

The gov­ern­ment’s eq­uity hold­ings in DHI amount to Nu 45,087.59mn, which con­sti­tutes 91% of the to­tal eq­uity in­vest­ments in SOEs. DHI recorded to­tal as­sets of Nu 52,793.590mn and net worth of Nu 51,086mn, which grew by 1% and 2.7% in 2016 re­spec­tively. The in­crease was due to ad­di­tional cap­i­tal in­jec­tion of Nu 90.41mn in State Min­ing Cor­po­ra­tion Lim­ited and Nu.404.26mn in Con­struc­tion De­vel­op­ment Cor­po­ra­tion Lim­ited (CDCL).

DHI is the only gov­ern­ment hold­ing com­pany with Min­istry of Fi­nance as its sole share­holder. DHI’s port­fo­lio con­sists of 19 com­pa­nies which op­er­ate in en­ergy, man­u­fac­tur­ing, trad­ing, ser­vices and fi­nan­cial sec­tors. As per the Royal Char­ter, DHI is man­dated to hold, man­age, and en­hance na­tional wealth through pru­dent in­vest­ments.

Ad­di­tion­ally, in 2016, State Owned En­ter­prises (SOEs) and linked com­pa­nies in­clud­ing DHL com­pa­nies posted an av­er­age growth of 12.85% (from Nu 53,758.8mn in 2015 to Nu 60,667.38mn). The ag­gre­gate profit earn­ing of SOEs grew by 12.89% from Nu 13,424.55mn in 2015 to Nu 15,155.66mn in 2016. Over­all, the re­port states that the im­prove­ment in the per­for­mance of SOEs has con­trib­uted to­ward higher tax rev­enue and div­i­dend re­mit­tances to the gov­ern­ment. Last year, SOEs and linked com­pa­nies con­trib­uted Nu 11,089.55mn: tax (Nu 7,022.01mn) and div­i­dend (Nu.4,068.57mn) to the gov­ern­ment, which was 39.56% of the to­tal do­mes­tic rev­enue.

In terms of rev­enue earn­ings, SOEs achieved com­bined turnover of Nu 60,667.38mn against the pre­vi­ous year’s rev­enue of Nu 53,758.8mn (growth of 12.85%).

Hy­dropower sec­tor con­tin­ues to be the sin­gle largest rev­enue earner with Nu 14,624.05mn, that is 24% of the to­tal turnover fol­lowed by fi­nan­cial sec­tor which posted rev­enue turnover of Nu 12,868.33mn in 2016.

Newspapers in English

Newspapers from Bhutan

© PressReader. All rights reserved.