This was disclosed at its recent Annual General Meeting in Port Moresby, attended by Prime Minister James Marape in his capacity as the Trustee Shareholder of Kumul Petroleum for, and on behalf, of the eight million people of Papua New Guinea.
Kumul Petroleum Chairman, Andrew Baing, revealed that the K4 billion remitted to the State is out of the total revenue of circa K5 billion earned by Kumul Petroleum from the period 2014 to 2018. This is almost 80 percent of the total revenue of Kumul Petroleum for the period 2014 to 2018.
Baing said the K4.2 billion Kumul Petroleum support to the State over the last five years (2014 – 2018) was in the following payments -
- Dividend US$399 million – (K1.33 billion)
- Return of Capital US$348 million - (K1.16 billion)
- Oil Search Collar related cost US$339 million – (K1.13 billion)
- Corporate Tax US$ 89 million – (K300 million)
- Government Support US$22 million - (K73 million)
The Chairman said the figure represents 78% of cash available to Kumul Petroleum from PNGLNG Project and other revenue sources like the Hides Gas to Electricity Project, Moran Oil (Eda Oil), and others.
The balance of the funds had been reinvested over the last 5 years in Kumul Petroleum, in PNG, and the People of PNG through the following initiatives:
- Kumul Petroleum Academy for Oil and Gas Skills Development.
- Port Moresby 58MW Gas Fired Power Station under NiuPower.
- Reinvestment in existing or discovered and known Oil and Gas Fields.
- Hela and SHP Rural Electricity Program.
- Staff development and education.
- Student sponsorships for University Studies.
- Graduate development Programs.
- Local salaries and wages and consulting.
Baing also revealed that Kumul Petroleum’s remittances represents over three times the total tax paid by PNG LNG Project to Internal Revenue Commission over the same period (2014 – 2018). This reaffirms the value of Kumul Petroleum to the people of PNG, and more so where the people have direct equity in resource development projects.
The Chairman further disclosed that Kumul Petroleum achieved a Net Profit after Tax of US$143 million (K595 million) for 2018, and expects even better 2019 results. Total dividend paid in 2018 was K300 million, over 62 percent of the Net Profit after Tax (NPAT).
In addition to the dividends, Kumul Petroleum also paid K300 million as a Return of Capital plus over K100 million in corporate taxes to the State. In total, these amount to over K700 million delivered in funding PNG from its investment in the oil & gas sector in 2018.
Finally the Chairman announced a further dividend for 2019 of K100 million, bringing the total dividends to date for 2019 to K200 million.
(KPHL Board Chairman Andrew Baing and Managing Director Wapu Sonk presenting a dummy cheque to Prime Minister James Marape. Wednesday’s AGM also saw the presentation of a K100 million to the State in dividends)