By BRIAN GOMEZ
NEW Britain Palm Oil Ltd’s share yesterday rose 28 pence, or 5.54%, to close at a record 333 pence (K29) a share to give the company a market capitalisation of K4.3 billion.
When it became the first Papua New Guinea stock on the London Stock Exchange in mid-December, its shares shot to K14.30 compared with K9 from its primary listing on the Port Moresby Stock Exchange.
The spectacular share price increase enjoyed by NBPOL in the past three months has overshadowed the excellent performance in recent years by Oil Search Ltd and Lihir Gold.
By the end of the year, NBPOL shot up to K20, providing one of the key reasons why Nasfund has credited its retirement saving fund members with a 37% return.
Sources indicated the conservative-minded Nasfund board and management had placed a valuation of K15 a share on the seven million NBPOL shares it holds, making it the third largest shareholder.
This year Nasfund appears set for more kudos, and every NBPOL shareholder will be thrilled with the news, that NBPOL yesterday hit an all-time high of K29 a share, almost double the valuation Nasfund placed on its holdings in its 2007 annual accounts.
Despite falling world share market performances, the stock has risen by 19.8% in the past month.
The phenomenal surge, and NBPOL’s current market capitalisation of K4.3 billion, shows that its operations near Kimbe in West New Britain are among the best run palm oil companies in the world.
Ironically, the LSE listing followed a failed attempt a decade ago to list on the Australian Stock Exchange during a political and economic crisis faced by the government of the late Prime Minister Sir Bill Skate.
The company’s performance will put PNG on the world map in terms of its agricultural potential with NBPOL comfortably ranking among the best managed agricultural companies worldwide.
NBPOL celebrated its 40th anniversary in PNG last September. It now has 18 plantations covering 34,000 hectares of oil palm with 7,000 PNG out-growers selling their fruit to the company. It is also PNG’s largest private employer with 7,000 full time staff.
In terms of its market capitalisation, NBPOL is PNG’s third largest listed enterprise after Lihir Gold and Oil Search.