Tiper hands over Sh1.3bn to State after Sh6bn profit

Monday June 16 2014

Finance Permanent Secretary Servarcius

Finance Permanent Secretary Servarcius Likwelile (second left) receives a symbolic cheque for Sh1.275 billion as dividend to the government from Tanzania International Petroleum Reserves Limited (Tiper) chairman Abdulkarim Mruma (second right) as Tiper managing director Daniel Belair (left) and acting Treasury Registrar Mwakibinga Mihalale look on. PHOTO | COURTESY      

By The Citizen Reporter

Dodoma. The government has received a dividend of Sh1.275 billion from Tanzania Petroleum Reserves Limited (Tiper) after the company realised a Sh6.06 billion profit after tax in 2013.

The money will help to fill the deficiency experienced in the current Budget, Servarcius Likwelile, Permanent Secretary to the ministry of Finance said.

“We will channel this money to sectors which need it most. The distribution will be according to 2013/2014 budget allocations given the fact that we did not reach our target in terms of revenue collection,” he said.

Tiper is jointly owned by the government and Oryx Oil and Gas (OOG) each with a 50 per cent stake.

Dr Likwelile applauded the Tiper management for the performance which has enabled the company to continue realising good profits, creating jobs, ensuring that the country has enough petroleum reserves and ensuring that the two shareholders get their due dividend.

Tiper managing director Daniel Belair, said the firm’s contribution will go a long way in stimulating the country’s socio-economic development.

“The year 2013 was the best year ever experienced by Tiper in terms of financial performance with an Sh8.8 billion profit before tax realized and we paid Sh2.74 billion income tax to the government.

“Tiper is committed to investing in ultra-modern storage facilities that will ensure that petroleum products are readily available for both small scale and big users,” Mr Beilar said.

He said that Tiper had invested $10 million for increasing its current capacity of 141,000 cubic meters of fuel storage.

For his part, the chairman of the Board of Directors, Prof Abdulkarim Mruma, said that the firm has been paying dividend to the government since 2009 following investment of Sh8.3billion ($5.2 million) that has enabled the company to operate profitably.

He said tiper paid Sh1.3 billion in 2009, Sh1 billion in 2010, Sh2 billion in 2011 and Sh2 billion in 2012. “Today, the company has paid Sh1.275 billion to each of its shareholders,” he said.

He added that presently tiper has got the largest fuel terminal in Tanzania and that it will continue to expand to ensure that it continues to provide its customers with quality, world-class and reliable services.