Motor Vehicle Insurance Limited (MVIL) paid more than K42.1 million in dividend to Kumul Consolidated Holdings (KCH), the entity that holds the PNG Government’s non-petroleum and non-mining assets.
The dividend payment is for the financial year ending 31 December 2020. Despite the impact of COVID-19 pandemic, MVIL was able to pay 67 percent of the budgeted dividend of K63.2 million.
When presenting the figures, MVIL’s Managing Director, Michael Makap, said the pandemic derailed the company from its strategic direction, resulting in a low turnover compared to 2019.
In 2019, MVIL achieved budget with an after tax profit of K109.8 million compared to the budget of K74.0 million and paid a total dividend of K70.0 million inclusive of the K20.0 million support to Air Niugini.
“Last year, is a little low because of COVID-19 situation that hit us so bad. We had to close the entity for almost two months and that brought us a lot of loss revenue,” Mr Makap said.
He was appreciative of KCH’s support to MVIL and thanked the Minister for State Enterprises, William Duma for guidance.
MVIL Board Chairman, Eno Daera assured Minister Duma that the company will continue to pay dividends, saying: “We will pay dividends every year and without fail, we will do it next year.”