Published On: Mon, Oct 13th, 2014

Government wants 15 million in dividend from Curoil

CuroilWILLEMSTAD – Both Curoil and the Government Accountant’s Bureau (SOAB) have advised against paying dividend to the Government for the year 2013, but the Government believes that the public company Curaçao Oil (Curoil) is able to pay the 15 million guilders in dividend. The Bureau for Supervision and Standards Government Entities (SBTNO) has no objection against the Government’s decision.

The Council of Ministers has asked the SBTNO to advise them on Curoil’s dividend policy. The public company Curoil mentions two options. The first one is not to pay the Government the dividend for the fiscal year of 2013, but to pay 60% starting in 2014. The second option is to pay 20% in 2013, 30% in in 2014, 40% in 2015 and 60% in 2016.

SOAB advises the Government to be careful with the dividend policy regarding Curoil. According to SOAB, the Government must ensure the continuity of the company when claiming dividend. SOAB wants the Government to include in their policy, steps to improve the financial situation of the public company and this has to be according to international standards. In the international oil market, the norm for an adequate financial position is a debt-to-equity of 0.27.

Based on its analysis, SOAB indicates that in the years 2010 and 2011 has suffered enormous financial losses and also that the dividend of 10.4 million guilders (2012) was declared. Thus the SOAB advises the Government not to claim the dividend on the net result of 2013. SOAB also advises the Government to only declare a dividend of maximum 10.4 million guilders for the period of 2014-2016.

This is to guarantee that the public company can adapt its tariffs on the local market on a monthly based to compensate for the losses of 2010-2011.

The Minister of Finance, Dr. Jose Jardim, indicates that he has analyzed the recommendations given to the Government and in all these cases the debt-to-equity norm stays below 0.27. It is also the Government’s policy that if a public company is profitable, it should pay dividends, the Minister said.

The Government believes that Curoil can pay the dividend, because its tariffs are adjusted on a monthly basis and they always include a recovery percentage in it.

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