Profit & Loss

Fiji Pine makes record profit for year ending 2015

Fiji Pine Group of Companies made a record operating profit before tax of $24.2 million for the year ending 2015 compared to $21.2 million for the year ending of 2014. Executive Chairman of Pine Group of Companies Mr. Faiz Khan stated that the profits excluded forest valuation. KHAN: “Forest valuation is based on multiple factors […]

Nacanieli Tuilevuka

May 28, 2016 7:26 am

Fiji Pine Group of Companies made a record operating profit before tax of $24.2 million for the year ending 2015 compared to $21.2 million for the year ending of 2014.

Executive Chairman of Pine Group of Companies Mr. Faiz Khan
Executive Chairman of Pine Group of Companies Mr. Faiz Khan. (PGC)

Executive Chairman of Pine Group of Companies Mr. Faiz Khan stated that the profits excluded forest valuation.

KHAN: “Forest valuation is based on multiple factors that include considerations for world market price fluctuations of wood fiber. Forest valuations can be subjective. Thus, a few years ago we decided that we will only focus on operating activities when reporting profits.”

Mr. Khan said the shareholders fund (net of forest valuation) has increased by $52.04 million in the last 5 years from end of 2010 to end of 2015.

KHAN: “This amount includes impairment of assets that were not performing to its full potential in the sum of $9.95 million. The assets that were impaired were built prior to 2011. Thus in this last 5 years period shareholders’ fund has taken a $9.95 million hit due to capital investments not done properly in years prior to that.”

“But for this impairment of under-performing assets, Shareholders’ Funds in the last 5 years would have increased by $62 million. For record purposes if we include forest valuations our shareholders’ funds has increased by $84.7 million. However we ignore as we focus on ‘real’ operating results.”

Mr. Khan said the  shareholders of the company are the landowners and the Government.

KHAN: “We are rebuilding the long term sustainability of the pine industry for our landowners. Our Prime Minister continually seeks updates from us on our performances and that is pleasantly rare. It shows his commitment to the Pine industry.”

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