KINA Asset Management Ltd has recorded a net profit of K6 million for the year ended Dec 31.
The profit was up from K3.3 million in 2020.
In its annual report released on Tuesday, the result was provided by a portfolio return of 8.3 per cent for shareholders, in a difficult year which begun its recovery from the dramatic falls recorded in the first quarter of 2020.
The company’s net assets stood at K80.1 million as at Dec 31, an increase of 2.3 per cent from the previous year.
Board chairman Sir Rabbie Namaliu said: “The performance last year reflected the company’s strategic investment approach which focused on long-term holdings of leading businesses in PNG and Australia, generating strong returns in rising markets, and limiting downside in more challenging market conditions.”
The main components of the 2021 result were:
- CAPITAL gains of K6.6 million resulting from gains in the prices of the company’s Australian (K3.6 million) and global (K3 million) shareholdings. Key contributors included Telstra (K1.2 million), Sonic Healthcare (K0.6 million), Sydney Airport Corp (K0.6 million) and ANZ Bank (K0.6 million);
- DIVIDEND and interest income of K4.5 million. Key contributors were BSP (K1.7 million), Kina Securities (K0.5 million) and Credit Corporation (K0.5 million); and
- DIVIDEND income from the company’s Australian shareholdings totaled K1 million and global equities K0.6 million.
There was a broad-based appreciation of the US dollar last year, resulting in a nominal currency translation loss of K3.5 million from PNG’s foreign currency rate setting policies.