Port pays dividend to state

THE Port of Cork has paid €634,315, 30% of the company’s 2010 after-tax profits of €2.23 million, to the Exchequer — the first time the company has paid a dividend to the state.

Transport Minister Leo Varadkar has welcomed the decision of the Port of Cork to pay the state a dividend for 2010.

This is on top of €120,000 in corporation tax that has already been paid by the company.

Mr Varadkar said: “I warmly welcome this contribution by the Port of Cork. I recently wrote to the commercial agencies under my department’s remit advising them that, unless there is a compelling reason otherwise, they should be making a return to the Exchequer.

“In line with the McCarthy report, this return should be 30% of after-tax profits. Therefore, I am very pleased that the Port of Cork has responded so positively, so quickly.”

Mr Varadkar said the Port of Cork becomes only the second of the nine ports under his department’s remit to pay a dividend.

“I will be expecting all profitable semi-states to pay a dividend for their activities in 2011. The only exceptions should be those companies dealing with massive debts or other liabilities,” he said.

Port of Cork chairman Dermot O’Mahoney said the board recommended the dividend in support of Mr Varadkar’s view that “the regular payment of a reasonable dividend to the shareholder is good practice and a performance regulator” for state assets, particularly given the current financial position the country finds itself in.

“The Port of Cork Company will endeavour to continue to make a profit after tax and continue to pay a dividend in the amount of 30% of profits available for distribution.

“The company will also continue to pursue its capital strategic development plan and reduction in its pension fund deficit,” Mr O’Mahoney said.

According to the company’s latest annual report, the port posted a pre-tax profit of just over €2.23m last year, having made a pre-tax loss of €5.51m in 2009.

Furthermore, after-tax profits came in at €2.11m — up from a 2009 post-tax loss of €4.93m.

Operating profit went from €1.5m to just over 2m, while turnover was up from €20.8m to €22m.