Net profit of PEs slips by 37pc

HIMALAYAN NEWS SERVICE

KATHMANDU: The net profit of public enterprises (PE) dropped by 37 per cent in fiscal year 2010-11, as compared to the previous fiscal year, according to the progress review report of public enterprises of the Finance Ministry.

“Net profit slipped to Rs 6.67 billion in fiscal year 2010-11, whereas the net profit was Rs 10.55 billion in fiscal year 2009-10,” said the ministry.

Of the total 37 public enterprises, 21 have been making profits and 14 are incurring

losses, the review report said, adding that the remaining two PEs –– Nepal Engineering

Consultancy, and Hydroelectricity Investment and Development Company –– have not made any transactions.

Ministry has said that Nepal Electricity Authority (NEA)’s loss of Rs 6.9 billion and Nepal Oil Corporation (NOC)’s loss of Rs 5.11 billion were the main reasons for the plunge in net profit.

However, the total operating income of PEs increased by 15.93 per cent to Rs 151.85 billion from Rs 130.51 billion in last fiscal year, the report revealed.

Share investment by the government in the 37 PEs reached Rs 92.19 billion by the end of fiscal year 2010-11, as compared to Rs 84.91 billion in the previous year, added the report, adding that the total loan investment to the PEs reached Rs 95.16 billion, which is a 12.07 per cent

increase as compared to the

previous fiscal year.

The shareholder treasury of the public enterprises swelled by 26.37 per cent –– Rs 100.99 billion –– in fiscal year 2010-11.

The government received Rs 5.49 billion dividends in fiscal year 2010-11 from its total investments, which is 5.9 per cent of the total investments, according to the report. “The dividend amount was Rs 4.80 billion in the previous fiscal year and Nepal Telecom is the only PE which has contributed to the increase in dividends.”

The dividends received by the government from 37 public enterprises contributed 2.75 per cent to the total revenue contribution in 2010-11, when a total revenue of Rs 199.82 billion was collected, the report said.

The contribution of the public enterprises has a share of 11.09 per cent in the gross domestic product which was Rs 1369.04 billion in fiscal year 2010-11. The ministry has said that the Public Enterprises Directorate Board has been working to empower public enterprises.

Administrative cost increases

KATHMANDU: Administrative costs of public enterprises (PE) in fiscal year 2010-11 increased by Rs 2 billion as compared to previous fiscal year. Administrative costs reached Rs 26.07 billion in fiscal year 2010-11 as compared to Rs 24.22 billion in the previous fiscal, according to the yearly progress report of PEs released by Finance Ministry.