Ashdod Port Company Ltd. will pay the government a dividend of NIS 350-400 million, after posting record profits in 2009-10. Ashdod Port posted a profit of NIS 381 million in 2009 and NIS 180 million in 2010. The company is in talks for final permission to publish its financial reports for these two years.
In addition, Israel Ports Development & Assets Company Ltd. posted a profit of NIS 600 million in 2009-10, and will distribute a dividend of a similar size. Haifa Port Company Ltd. posted a profit of NIS 67 million in 2009, but its financial report for 2010 is not yet ready.
Under Government Companies Authority rules, a government company must pay half of its net profit as a dividend as a condition for distributing bonuses to its employees. However, the Government Companies Authority normally demands a dividend of 60% of a company's net profit.
Government sources told "Globes" that they expect no real progress in talks on the privatization of the Ashdod Port and Haifa Port, at least until the sale of Eilat Port Company Ltd. is completed. In September 2009, the ministerial privatization committee decided to float 15% of the Ashdod Port and Haifa Port on the TASE, and to subsequently reduce the government's stake in them to 51%.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011