State-owned enterprise Fiji Hardwood Corporation Limited (FHCL) has cleared about $8 million in legacy debts carried for more than 20 years.
This was revealed by the company this week as it announced the declaration of $500,000 in its first-ever dividend paid out to Government since its establishment in 1998.
The company attributed the dividend achievement to its robust performance in the 2021 financial year, during which FHCL recorded a profit before tax of $3.302m.
It stated that beyond the immediate profitability, its board also recognised the massive clean-up of the company’s balance sheet.
FHCL chief executive officer Semi Dranibaka said the first dividend was proof of the company’s complete turnaround.
“From debt-burdened losses to consistent profitability, we are now returning tangible value to our shareholders, the Government and the people of Fiji,” Mr Dranibaka said.
“We have rebuilt our balance sheet and established a solid foundation for sustainable growth. This is just the beginning.”
Minister for Public Enterprises Charan Jeath Singh said FHCL’s turnaround and first dividend payout demonstrated strong leadership, sound management and real economic progress.
“The dividend payment we celebrate today is proof that with a clear vision, good governance, and true partnership, we can transform challenges into national success,” Mr Singh said in a statement from FHCL.
He emphasised the importance of sustaining momentum and upholding governance standards.
“Good governance must be upheld at all levels of the organisation, including in our dealings with landowners and other stakeholders, as this will place FHCL in a strong position to embrace new business opportunities.
“In return, we expect this momentum to grow, in production, in value-added processing, in market expansion, and in dividends.”
FHCL has complemented its financial recovery with investments in modernization and expansion.
The companby stated it recently partnered with a US-based firm to train its inventory and survey team in advanced data-capture technology, enhancing efficiency and accuracy across its more than 75,000 hectares of mahogany plantations in challenging forestry environments.
“We are building a future-ready organisation,” Mr Dranibaka said in a statement.
“Through advanced technology, skills development, global partnerships, and an unwavering commitment to sustainability, FHCL is strengthening its vital role in Fiji’s economy, delivering dividends to the State, meaningful benefits to landowners, and responsible stewardship of our valuable mahogany forests.”
