Kumul Petroleum Declares K552m Dividend

PNG's national oil and gas company, Kumul Petroleum Holdings Ltd (Kumul Petroleum) has paid a massive K551.82 million in dividends to the State and PNG LNG Project Kroton Equity Option Beneficiaries.

Kumul Petroleum Chairman Professor, Benedict Yaru presented the cheque of K200 million to the trustee shareholder, Prime Minister, James Marape during its Annual General Meeting yesterday, Tuesday 14th of December in Port Moresby.

Out of the K300 million declared, K100 million was paid earlier, while the K200 million was yesterday, Tuesday 15th of December. At the same AGM, K251 million preferential dividends held by Kumul Petroleum for Kroton Equity beneficiaries paid to five provincial governments and the PNG LNG project landowners.

Of the K251 million paid, K189 million was announced as dividends for PNG LNG Project Kroton Equity Option Beneficiaries (landowners) while K62 million is paid to the five provincial governments. 

In presenting the dividend payment, Kumul Petroleum Managing Director, Wapu Sonk said the K251 million dividends are from the financial years 2017 to 2021 as per the Vendor Financing Agreement that was signed in December 2016, which protected the Kroton Share Option exercise.

“As the Prime Minister and his Government announced in 2019, Kumul Petroleum has been working to free the Kroton option of 4.27 percent and effective 2022, the Beneficiaries will get full amounts allocated for the 4.27 percent in Project revenue now under Kumul Petroleum,” Mr Sonk said.

He highlighted to the Trustee shareholder that so far in the last seven years, the National Oil and Gas Company has supported the Government in various forms such as corporate tax, dividends, Social Programmes and return on capital among others to the value of K5.2 billion.

Mr Sonk also indicated that Kumul Petroleum maintains a strong balance sheet of US$2 billion net asset and remains cash positive with strong liquidity to be able to invest in other future projects like Papua LNG, Pnyang and others.

Meanwhile, Prime Minister Marape commended Kumul Petroleum for delivering a great 2019 financial year and an unqualified audit report for the year. 

He expressed satisfaction that Kumul Petroleum has adjusted its business model since 2019, to reflect the Government’s policy.

The Prime Minister said it’s good to see social programmes that Kumul Petroleum runs, which is having real impact on lives of Papua New Guineans especially in rural electrification, health care at our major referral hospitals in Cancer and Cardiology and investments in sports especially rugby league developments.

“I attended 2018 AGM and now is 2019 AGM and I want to attend 2020 and 2021 AGM, as this is very critical for such an important company like Kumul Petroleum to be fully audited, with strong Governance structures and fully compliant with Company’s Act, KPHL’s own Act and all our other Laws.”

He Kumul Petroleum for delivering K300 million dividend to State in 2021 and the continued assistance in COVID-19, response during the various waves of COVID strains.

A the same juncture,  the Prime Minister reiterated, “as directed in 2019, our expectations are that Kumul Petroleum  will continue to work upstream more and less in the downstream.

“Now that you have been awarded Petroleum Retention Licenses (PRL) by Government, take lead in downstream processing, look at Blue Energy (Ammonia) and Carbon dioxide (CO2) injection and Storage, Green Energy etc. and help PNG meet the Paris and Glasgow commitments and also protect our future and environment,” Mr Marape concluded. 

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