SINPF Chairman Mr Peter Boyers

SOLOMON Islands National Provident fund (SINPF) value of shares in South Pacific Oil (SPO) has now reached more than $766 million.

SINPF Board Chairman Peter Boyers revealed this on Friday when he received a payout of $61 million in dividends from SPO, witnessed by board, management, directors and staff of both organisations at the SINPF board room.

Mr Boyers said SPO is now 100 percent owned by SINPF and is one of the biggest and the best performing equity investment of the fund, averaging an annual rate of return of 34.6 percent per year over the past 10 year period.

“As a result of this impressive financial performance over the 10 years, from an initial at cost investment of $42.1 million in 2006, the value of our shares in SPO has now reached more than $766 million.

“The SINPF Board, Management and Staff are so proud of this investment in SPO as the company continues to grow its market share and presence in the outer provinces in line with its slogan ‘fuelling our islands’,” Mr Boyers said.

SPO has paid the SINPF $61 million in dividends marking the highest and the best-ever profit recorded in its 10 years since it operates in the country in 2006.

Mr Boyers stressed that with the dividend now declared and paid, would increase SINPF returns from $293.1 million to $354.1 million for the last 10 years in terms of Dividend Income.

“The total original investment of $196 million paid for SINPF’s 100 percent shares in SPO has been recovered in full, with a realised to date profit of $158.1 million.

“As a shareholder, we are pleased to receive a clean financial audited report recording another year of growth for SPO and extremely happy to see the company maintaining a positive track record in these challenging economic conditions,” he said.

In line with the strategic objectives set by the SPO Board, in 2016 SINPF saw SPO enter a phase of transformation in which SPO examined its business model to ensure a best fit in the Solomon Islands fuel market with its focus remains to be an energy solutions provider in the country, and committed to work with strategic partners to ensure that fuel gets delivered to provinces in an economical manner so as to reduce the price of fuel in the provinces.

Mr Boyers thanked SPO and encouraged it to keep up with the excellent work and outstanding efforts to make and continue to sustain a great nationally owned profitable company.