Photo credit: Loop PNG
Steamships Trading Company Ltd, based in Port Moresby, has declared an improved financial performance for 2021.
“On the back of a strong performance in the hospitality division and a continued recovery in the shipping division, revenue increased 11 per cent to K564 million on a continuing basis and the underlying profit attributable to shareholders rose 14.8 per cent to K90.6 million,” Steamships said in a statement.
“The company declared a final dividend of 1 kina per share, up 25 per cent from the prior year.”
The company further said 2021 was a difficult year for the PNG private sector as a whole and Steamships’ diverse business activities, being closely integrated to the domestic economy, were impacted by the negative impacts of the COVID-19 virus and an economic slowdown.
“However, prudent cost management, a dedication to customer service and cautious investment have delivered much improved results in 2021 over the prior year.”
Chairman Geoff Cundle said: “This is a pleasing result for our 600,000-plus Papua New Guinean shareholders and beneficiaries, coming as it does on the back of a decade of challenges for the company.
“We’ve been through some lean years that have coincided with an economic lull in PNG, and more recently we have had to adjust to the devastating impacts of a global pandemic.”
Cundle highlighted that the improved results reflect hard work, making tough but timely business decisions, and a resilient and loyal workforce.
“We’ve adjusted our balance sheet over time, rightsized our businesses, introduced efficiencies and made a significant investment in our business infrastructure that will accrue long-term benefits. Some of that benefit has flowed through to the numbers this year,” he stated.
Steamships operate multiple divisions across the country, including Pacific Palms Property, Coral Sea Hotels, East West Transport, Pacific Towing, Consort Express Lines and Joint Venture Port Services, employing around 3,000 Papua New Guineans.
The company is confident in the prospects for the PNG economy and has several exciting investments in the process.
“The K500 million Harbourside precinct will be completed this year with the delivery of Harbourside South; the first portion of which will be handed over by the builders to Pacific Palms Property in March,” outlined Steamships.
“In addition, two mixed-used developments, one in Mount Hagen and one in Port Moresby, will commence later in the year.
“The company will remain vigilant in managing costs while being responsive to opportunities created by challenging market conditions.
“Later in the year, Steamships will move its corporate office and those of Pacific Palms Property and Coral Sea Hotels into @345 on Champion Parade, the old Burns House. This move signals Steamships’ desire to play a central part in regenerating downtown Port Moresby.”
Reference: Loop (1 March 2022). “Steamships Posts K90.6m Profit”.
