Fiji Hardwood Corporation Limited (FHCL) has made a significant announcement by declaring its first-ever dividend of $500,000, representing a pivotal moment for the state-owned enterprise. This announcement was made during the Corporation’s Annual General Meeting, which marked its first gathering of this kind in decades.
The declaration of the dividend signifies a successful transformation in the company’s strategic direction and highlights a return to financial stability. During the 2021 financial year, FHCL achieved a profit before tax of $3.302 million, reinforcing the effectiveness of its recent initiatives.
Under the guidance of CEO Semi Dranibaka, FHCL has accomplished a noteworthy feat by settling approximately $8 million in legacy debts that had burdened the company for over 20 years. This comprehensive “clean-up” of its balance sheet has shifted FHCL from a state of insolvency to consistent profitability.
Minister for Public Enterprises, Charan Jeath Singh, praised the dividend as a testament to effective management and genuine economic advancement. He underscored the importance of upholding good governance and transparency with landowners and stakeholders to facilitate new business opportunities and ensure long-term sustainability.
In line with its progress, FHCL is investing in the modernization of its operations across its vast 75,000 hectares of mahogany plantations. A recent collaboration with a U.S.-based firm has enhanced the capabilities of the company’s inventory teams, providing them with advanced data-capture technology that improves accuracy in challenging forestry conditions.
This positive trajectory for FHCL not only signifies a remarkable turnaround but also reflects a hopeful future for the company as it continues to leverage innovative strategies and maintain strong governance practices.
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