The Pacific Forum Line Limited presented its first dividend of $12 million to the Government since Samoa took the risk of acquiring all shares to save the then-insolvent shipping service. 

P.F.L. was purchased by the Government in September 2012 from the Pacific Forum Island countries when the company was becoming insolvent with a total liability of NZ$13.36 million.

Shortly after it purchased 100 per cent shares of P.F.L. it partnered with Neptune Pacific Line in 2014 to run and operate the company. 

According to P.F.L. Chairman, Tupuola Koki Tuala the last time the company paid dividends to the Government was before 2012 when Samoa bought all shares from other Pacific islands.

He said the delay in paying the dividend was due to COVID-19 and the substantial $12 million is the first payment for the years 2015 to 2020. 

“We are waiting on our audit accounts from 2021 to 2023 and once finalised we will review dividend and profit to be presented sometime this year,” said Tupuola. 

The dividend presentation took place at the office of the Minister of Works Transport and Infrastructure, Olo Fiti Vaai and in attendance was Tupuola, P.F.L. General Manager, Teuila Eteuati and Director, Sala Theodore Toalepai. 

Olo handed over the cheque to the Minister of Finance, Lautimuia Uelese Vaai acknowledging the hard work of P.F.L. that made it possible to make the major payment to the Government. 

In turn, Lautimuia echoed the appreciation from the Government and the fruits of its investment in P.F.L. 

He accepted the dividend and extended his thanks to the P.F.L. for their continued service to the country. 

P.F.L. was established by the South Pacific Forum members in 1978 incorporated and registered in Samoa. 

As founding member of S.P.F., Samoa was one of the founding members and shareholders of P.F.L. since its establishment. 

A press statement from P.F.L. said the founding members and shareholders of the company set up the initial legal objectives and vision for P.F.L. and its functions were the provision of reliable, frequent, and viable shipping services with affordable freight rates for the Pacific region. 

The initial investment by the government in P.F.L. in September 2012 was NZ$3.16 million which included the purchase of all shares of the company; settlement of outstanding dividends to former shareholders and working capital for the company. 

P.F.L. was established and registered Pacific Forum Line Group (P.F.L.G.) in Vanuatu in 2014. 

P.F.L. subsequently sold 50 per cent shares of the company to Neptune Pacific Line for NZ$1.5 milion and formed a 50/50 percent joint venture company solely for operating P.F.L. shipping services. The P.F.L.G. company will mark its 10th anniversary on 1st October 2024.  

In 2014 the Government took over the UTOS loan of $16.3 million tala for the vessel, Forum Samoa II that was jointly owned by S.S.S. and P.F.L. 

The press statement highlighted total net profit before tax from 2015 to 2020 is NZ$17.95 million

The dividend of $12 million is the full repayment of the initial investment by Government of $5.38 million tala in P.F.L. in 2012. 

The dividend also represents the first repayment of $6.6 million for the Forum Samoa II loan that was taken over by Government in 2014. 

The P.F.L. Board will settle in full the Forum Samoa II loan balance in November 2024 from the final dividends for the years 2021 to 2023. 

The Board of Directors strongly believes that if it was not for the grace of God the P.F.L. project would not have been successful. 

There were numerous disasters encountered in the past such as immediately after the purchase of vessel, Forum Samoa II in August 2009, the vessel was grounded in Apia harbour during its inaugural voyage. 

P.F.L. operation was supposed to be closed completely by the end of December 2012 because it was insolvent and no shareholder of the Forum Island country wanted to invest in P.F.L. at the time except for Samoa.

"Therefore the appropriate theme of the P.F.L. project selected by the Board of Directors is from the Holy Bible of God in Psalm 118, verse 22 which states that 'the stone which the builders rejected has become the chief cornerstone'. 

"P.F.L. was the stone rejected by many but now it is one of the most successful projects by the Government and the Board of Directors is committed to further developing the company for the long-term economic growth of Samoa and the Pacific region," said P.F.L. 

"...the current F.A.S.T. Government will ensure the P.F.L./Neptune partnership will continue to service all customers in Samoa and the Pacific region with better and improved shipping services in the future."