$26.35M Profit for Fiji Ports Corp in 2017
Last year, was a positive business year for Fiji Ports Corporation Limited (FPCL). Fiji Ports Group Net Profit After Tax (NPAT) was $26.35 million which reflects the reported increase in vessel numbers and cargo throughput.
This is an increase over the 2016 reported NPAT of $26.26 million that was noted in the company’s 2017 annual report.
Fiji Ports Corporation chairman Shaheen Ali highlighted in his FPCl 2017 annual report message that these strong financial results are reflected in the Group’s KPI’s. Mr Ali said FPCL remains committed to yielding a solid financial return, while continuing to provide services that benefit the people of Fiji as well as servicing the wider regional maritime community.
“The Company performance for the 2017 Financial Year represents a very positive outcome, with the FPCL Group recording a remarkable Return of Invested Capital of 36 per cent and current liquidity at 5.5.
“The Group’s Balance Sheet remains strong, with a sound cash balance of $27m and zero external borrowings and the group holds $22m in term deposits.
“This year being the fourth full year of operations after the 2013 partial divestment of shares and transfer of the control of, previously subsidiary, now associate company, FPTL (Fiji Ports Terminal Limited), the financial performance for the Fiji Ports Group 2017 reflects a consistent and resilient outcome.
“The Group NPAT represents of $26.35m a 0.3 per cent increase over the 2016 reported NPAT of $26.26m.
“This is attributed to the increase in vessel numbers and cargo throughput, as well as the prudent cost control by Management.
“With the positive growth in volumes handled, the Group operating revenue showed an increase of eight per cent over 2016.
“Also attributable to the increase in cargo throughput is the nine per cent increase in the share of profits from Associate company Fiji Ports Terminal Limited (FPTL). “There has been an increase in total expenses by 15 per cent, which is derived from the increase in employee expenses, major repairs to and maintenance of shore cranes, and the increase in direct cost relating to core income.”
Record dividend
In 2017, total dividend paid by FPCL compared to 2016, was a record $16,082,198 dividend from operating profits and represents a 217 per cent increase from the previous year.
FPCL financial performance
The reported NPAT showed a marginal decline of five per cent, attributable to the one-off gain from the asset sale recorded in 2016.
There were a number of factors contributing to the increased core operating income by 13 per cent in 2017, compared with 2016. “With the increased number of vessels with larger Gross Registered Tonnage (GRT) visiting our Ports, the income from Marine Service not only remained strong it also increased by 23 per cent. “While the increase in the Dockage revenue stream increased by 15 per cent, due in part to the number of overseas vessels with greater GRT visiting the ports in 2017, this is also attributable to the improvements to overall port efficiencies. “The organic growth in the volumes of other income streams also contributed to the increased 2017 income, although, as expected, there was a decline in the Other Income stream in 2017 compared with 2016. This 33 per cent decline is mainly attributable to the oneoff gain, recorded from the asset sale in 2016.
Automation and ‘smart ports’
“Co-operation between the public and private sectors is essential to the success of the so-called ‘smart ports’. With the latest intelligent IT systems and the latest cargo handling equipment being utilised to meet the growing needs of shipping lines.
“With the increasing demands placing a growing emphasis on delivering improvements through innovation and automation, we are aware that technology is no longer the exclusive preserve of large, green-field ports. “Smaller Ports of Entry can take advantage of technological advances to create ‘smart’ systems. “For example, congestion or adverse impacts upon normal processes could be remedied, at a reasonable cost and effort, through the use of electronic systems to track container and vehicle movements.”
Improving efficiency
Mr Ali noted that Fiji’s economic dependence upon maritime trade requires that; “we meet the challenges and opportunities to continue to improve upon the efficiency and effectiveness of the company’s operations.
“This includes catering to the growing cruise ship industry, facilitating transshipment trade into the region and improving the cumulative benefits of labour and machine productivity, combined with the optimum utilisation of available space provided by FPCL’s infrastructure.
“The FPCL Board and the Man- agement team continue to strive to strike the balance between the company’s economic role and our environmental stewardship and our social responsibilities. “We seek to build a resilient and adaptable company that proactively plans a future that will provide the best for FPCL, our shareholders, our staff and Management, our customers, and for the whole of Fiji and its citizens.”
Port Users 2017
The dominant port user group continues to be service providers to vessels, which have shown a steady increase to 37 per cent in 2017.
The second group, importers and exporters, have also shown a small increase to 20 per cent.
The cruise-related activities group has also shown a slight increase over the past few years, comprising 14 per cent in 2017. Other groups have shown a slight percentage decrease with fishing activities coming in at nine per cent, tenants comprising five per cent, and technical service providers and contractors making up one per cent for 2017.