Steamships posts improved results
28 February 2022
Port Moresby listed Steamships Trading Company Ltd has announced an improved financial performance for the year ended 2021. On the back of a strong performance in the hospitality division and a continued recovery in the shipping division, revenue increased 11% to K564m on a continuing basis and the underlying profit attributable to shareholders rose 14.8% to K90.6m. The company declared a final dividend of 1 kina per share, up 25% from the prior year.
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.
“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”, declared Chairman Geoff Cundle, when announcing the results. “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 devasting impacts of a global pandemic”.
According to Mr. Cundle, 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 significant investment in our business infrastructure that will accrue long-term benefits. Some of that benefit has flowed through to the numbers this year”.
An icon of Papua New Guinea for over one hundred years, Steamships operates 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 process. The K500m Harbourside precinct will complete 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. 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.
@345 on Champion Parade, formerly Burns House, at various stages of refurbishment: December 2020 and July 2021.
Managing Director, Rupert Bray, echoed the comments of his Chairman. “With PNG being our only substantive place of doing business Steamships will continue to contribute to and participate in PNG’s economic and social development and we’re well poised for a recovery with a team that will continue to grow Steamships and its contribution to PNG”.