E.P.C. delivers $4 million dividend
The Electric Power Corporation (E.P.C.) has paid a $4 million dividend to the Government for the 2018-2019 Financial Year as the state-owned corporation continues to record strong financial performance amid the coronavirus-led downturn.
In addition to the typical dividend, the state-owned utility also donated $200,000 to assist the Government with its COVID-19 response.
The E.P.C. announced the dividend and donation in a statement issued on Friday night, following a presentation ceremony at the office of Prime Minister Tuilaepa Dr. Sailele Malielegaoi'.
“The dividend reflects the Corporation’s prolific results for the Financial Year ending 30th June 2019,” the E.P.C. said in a statement.
“As per public trading return on equity policy [state owned enterprises] are obligated to achieve at least [a] 7 per cent return on equity.”
Under Government regulations, state-owned enterprises must contribute a total of 35 per cent of their net profit to the Government each year.
Chairman of the E.P.C.’s board, Pepe Christian Fruean, said the corporation had achieved a positive return in the Financial Year despite being faced with challenging circumstances.
“Despite the [return on equity]. requirement being excluded from electricity tariffs and the challenges that impacted the Corporation’s financial performance, it still managed to achieve a positive profit for the year,” he said.
In total the corporation’s dividend to Government was composed of an equity dividend of $2.67 million but also a social dividend of $1.33 million.
“This is well over and above the expectations of the Government’s Dividend Policy; however, it is our contribution to the development of Samoa,” Pepe said.
The corporation attributed its positive results to the improved efficiency of its operations and the success of its renewable energy initiatives, particularly hydro generation.
According to the E.P.C. It had originally intended for its additional $200,000 donation as a response to the measles epidemic, but as the COVID-19 pandemic has ravaged Samoa’s economy it requested its contribution go toward the national recovery effort.