Hutchison Ports PPC, a company responsible for managing the ports of Balboa and Cristóbal, will make a payment to the Panamanian State for dividends corresponding to the year 2019.
Jared Zerbe, Executive President of Hutchison Ports PPC, explained that this dividend payment is a reflection of the opportunity that the earnings reinvestment process has given to pay dividends to its shareholders as a result of a strategic approach and agreement with the State.
In 2015, after significant investments, the optimal performance conditions were met, which led to the Board of Directors deciding to pay US$10 million, of which US$1 million was allocated to the state for its 10% shareholding.
Under similar conditions the Board of Directors took a decision in November 2017 to pay US$20 million in dividends to shareholder, of which US$2 million went to the state.
In 2018, a new payment of US$20 million was made by consensus of the Board of Directors, with a further US$2 million paid to the Panamanian state for its shareholding, according to Hutchison Ports PPC. Based on the 2019 scenario, dividends of US$30 million will be paid, with US$3 million for the Panamanian state, the company adds.
According to Panamanian law, the Panamanian state, which in addition to being the owner of the concession is a 10% shareholder of Hutchison Ports PPC and receives a fixed fee from each port under concession for each container that is mobilized in those ports.
“Even with the unfavourable trend of the regional port system, we have continued to contribute large sums of money to the state, being the main contributor for the rate of movement of cargo in national ports, and this has been possible given the financial policy adopted as part of the most convenient business strategy ”, concluded Jared Zerbe Executive President of Hutchison Ports PPC.
