Fiji Hardwood Corporation Limited (FHCL), a state-owned enterprise, has made significant strides by clearing approximately $8 million in legacy debts that had accumulated over the last two decades. This milestone was announced alongside the declaration of the company’s first-ever dividend, amounting to $500,000, which will be distributed to the Fijian Government since FHCL’s inception in 1998.
The company attributes this financial achievement to its impressive performance in the 2021 fiscal year, during which it reported a profit before tax of $3.302 million. FHCL’s leadership emphasized that the announcement of the dividend reflects not only their current profitability but also a significant cleanup of the company’s financial standing.
CEO Semi Dranibaka hailed the first dividend as evidence of FHCL’s transformation, stating, “From debt-burdened losses to consistent profitability, we are now returning tangible value to our shareholders, the Government and the people of Fiji. We have rebuilt our balance sheet and established a solid foundation for sustainable growth. This is just the beginning.”
Public Enterprises Minister Charan Jeath Singh praised FHCL’s turnaround and the dividend announcement as a testament to strong leadership, effective management, and tangible economic advancement. He stressed the importance of maintaining good governance within the organization and its relationships with landowners and stakeholders, hoping for ongoing growth in production, market expansion, and future dividends.
Moreover, FHCL has positioned itself for future success through investments in modernization and expansion efforts. The company has partnered with a U.S.-based firm to enhance the efficiency and accuracy of its inventory and survey teams utilizing advanced data-capture technology across its vast mahogany plantations.
Dranibaka further noted, “We are building a future-ready organisation. 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.” This strategic focus on sustainability and innovation highlights FHCL’s commitment to contributing positively to Fiji’s economic landscape while paving the way for future growth.
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