Indeni declares K31 million dividend to IDC

INDENI Petroleum Refinery Company has declared K31million dividend to its shareholder the Industrial Development Corporation (IDC).

This is the fifth dividend payment Indeni has made since 2015 following implementation of strategic reforms guided by the IDC that has resulted in the Refinery to becoming the overall best performing enterprise within the IDC Group.

Receiving the cheque, IDC Group Chief Executive Officer Mr Mateyo Kaluba commended the board, management and staff for the performance, hard work and commitment in service to the company.

Mr Kaluba said the K31 million declared is an increase from the K28 million received last year and translates to a dividend pay-out ratio of 50 percent well above the 35 percent ratio of net profit prescribed by IDC.

He said IDC is committed to ensuring that Indeni remains profitable and sustainable, hence taking a cautious approach in preparing to bring a strategic equity partner which shall help to modernize the company’s infrastructure and production capacity.

Presenting the cheque, Indeni Managing Director Mr David Lungu said the payment is a testimony that State-Owned Enterprises (SOEs) can be efficient and profitable.

In addition, Indeni Board Chairman Mr Yamfwa Mukanga said, the value of dividends declared have been increasing from the K2.4 million in 2015 to the current K31 million.

Meanwhile, Minister of Energy Hon. Mathew Nkhuwa said, Government will continue implementing prudent reforms that are yielding positive results. He said Indeni has proven that not all SOEs can be perceived to be wasteful and a drain on national resources.