Panama, January 7, 2020.- 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 from reinvestment process has given, in recent years, 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 conditions of performance were met, which led to the Board of Directors deciding to declare and pay dividends to its shareholders in the amount of USD 10 million, of which USD 1 million was allocated to the State for its 10% shareholding. Under similar conditions, at a meeting of the Board of Directors held in November 2017, it was decided to declare and pay additional dividends in the amount of USD 20 million, of which USD 2 million corresponded to the State. In 2018, a new payment of USD 20 million was made by consensus of the Board of Directors, of which USD 2 million also corresponded to the Panamanian State. Based on the 2019 scenario, dividends of USD 30 million will be paid, of which USD 3 million correspond to the Panamanian State.
According to Panamanian laws, the Panamanian State, which in addition to being the owner of the concession is a shareholder of 10% of the company, receives a fixed fee or payment from each port under concession for each container that is mobilized in those ports.
“Even with the unfavorable 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.
Hutchison Ports PPC has made investments for more than USD 1.5 billion to improve the port of Balboa, which today is listed as a mega port, as well as in the port of Cristóbal to expand it, key decisions in the growth of the terminals, and necessary to meet the demands of world maritime trade.
After more than two decades administering the port of Balboa and Cristóbal, Hutchison Ports PPC has contributed more than USD 415 million to the Panamanian State as a fee for each container that is mobilized in those ports. Hutchison Ports PPC contributes monthly more than USD 2.6 million in salaries and USD 1.3 million in social security in favor of around 1,500 employees. It also generates around 25,000 indirect jobs, among hundreds of small, medium and large companies, which serve as suppliers of products and services for both ports.
Hutchison Ports PPC has kept its position in the Panamanian port industry with strategy and tenacity, reaffirming its commitment to increasingly emphasize the strength of the Panama port industry in the eyes of the world and open to cooperate in any requested explanation, providing necessary information comfortably with established procedures.