Public Enterprises
Financial Snapshot 2022 – For all PEs
| ALL PEs | ||||||
| Audited Financial Highlights (T$’000) | 2018 | 2019 | 2020 | 2021 | 2022* | 5-yr Average |
| Revenue | 157,599 | 167,163 | 164,121 | 151,924 | 164,007 | 160,962.8 |
| Net Profit After Tax | 15,432 | 10,986 | 3,049 | 3,969 | 1,848 | 7,056.8 |
| CSO payments | – | – | – | – | 28,454 | 5,690.8 |
| Total Assets | 500,642 | 505,488 | 532,027 | 529,111 | 506,955 | 514,844.6 |
| Total Liabilities | 212,824 | 222,735 | 238,713 | 276,471 | 244,419 | 239,032 |
| Shareholders’ Funds | 256,576 | 261,836 | 253,386 | 194,787 | 242,694 | 241,856 |
| ROE % | 6% | 4% | 1% | 2% | 1% | 3% |
| ROA % | 3% | 2% | 1% | 1% | 0% | 1% |
| Asset Utilization | 31% | 33% | 31% | 29% | 32% | 31% |
Financial Snapshot 2022 – For each PEs
| (T$ ‘000) | Total Assets | Total Revenue | Total Liabilities | Net Profit / (Loss) | |
| Tonga Power Limited | TPL | 158,795 | 77,502 | 95,378 | 1,409 |
| Tonga Market Corporation Limited | TMCL | 3,315 | 2,161 | 20,590 | (40) |
| Friendly Islands Shipping Agency (2021) | FISA | 11,650 | 7,636 | 11,911 | 745 |
| Tonga Broadcasting Commission | TBC | 6,974 | 2,151 | 4,443 | 244 |
| Tonga Communications Corporation | TCC | 80,325 | 34,533 | 34,367 | 301 |
| Ports Authority Tonga | PAT | 31,315 | 12,606 | 6,874 | 1,473 |
| Tonga Water Board | TWB | 22,450 | 10,247 | 16,688 | 1,345 |
| Waste Authority Limited | WAL | 6,803 | 6,140 | 2,551 | 488 |
| Tonga Airports Limited | TAL | 79,211 | 7,471 | 17,737 | (4,867) |
| Tonga Post Ltd | TPost | 26,619 | 2,161 | 20,589 | 33 |
| Tonga Asset Managers and Associates | TAMA | 14,061 | 860 | 1,747 | (467) |
| Tonga Cable Limited | TCL | 77,087 | 8,175 | 23,455 | 1,929 |
| Portfolio | 508,993 | 163,914 | 246,762 |
Performance Highlights
The public enterprise portfolio has seen an overall decline in financial performance since 2018, with a sharp contraction in 2020[1]. A substantial loss incurred by Friendly Island Shipping and lower net profit by TPL contributed to the lower portfolio ROE and ROA in 2019, and all PEs (with the exception of TCL, TPost and WAL) suffered reduced profitability in 2020 as the Covid 19 pandemic precipitated an economic contraction.
During the 2016-2020 period, PAT and TPL contributed an average of 27% and 24% of total portfolio profitability, respectively, followed by TCL at 20%. TCC, which had contributed 31% of portfolio profits in 2019, has seen that contribution drop to 4% in
More detailed analysis on the performance of the PE portfolio prior to 2016 can be found in:
Government’s Management of SOEs
Government exercises SOE ownership oversight through the application of the Public Enterprise Act. The Act was strengthened in 2010 – establishing a clear commercial mandate; improving accountability and reporting requirements; removing ministers from boards; establishing a robust CSO framework and enhancing governance. The Minister of Public Enterprises is solely responsible for all SOEs, although Cabinet must be consulted on certain matters, such as the appointment of directors and approval of CSOs.
The Public Enterprise Act (PE Act) requires summaries of SOEs’ annual reports, including reports on how successful the SOE has been in achieving the objectives and targets set in its business plan, to be published in local newspapers. This practice has been followed since 2010 when the requirement became effective. 90% of Tonga’s SOEs produce their audited financial accounts within the time frame established in the PE Act; with six months of the end of the preceding financial year.
The Establishing Acts for the SOEs are listed on their respective pages under the “Important Documents” heading.
SOEs are monitored by the Ministry of Public Enterprises.
Important Documents
Periodically the Government approves policies to provide guidance to the SOEs and assist the Government effectively manage its ownership interest. The following are key policies adopted by Government relevant to SOEs.
[1] 2022 numbers for ROE, ROA and total assets do not include FISA.