Financial performance improved in ’21: Steamships

STEAMSHIPS Trading Company Ltd has announced an improved financial performance for the year ended 2021.
According to the company, this was on the back of a strong performance in the hospitality division and a continued recovery in the shipping division, 11 per cent revenue increase to K564 million on a continuing basis and the underlying profit attributable to 14.8 per cent shareholders rise to K90.6 million.
The company declared a final dividend of K1 per share, up 25 per cent from the prior year.
The company noted in its results that 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 Coronavirus (Covid-19) 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,” chairman Geoff Cundle said.
“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.”
According to Cundle, the improved results reflected 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,” he said.
“Some of that benefit has flowed through to the numbers this year.”
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.
Meanwhile, the company is confident in the prospects for the PNG economy and has several exciting investments in process.
The K500 million 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 Mt Hagen and one in Port Moresby will start later in the year.
Managing director Rupert Bray said: “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”.