STC posts K30.7mil profit for six months

 Steamships Trading Company Ltd has reported an unaudited profit after tax of K30.7 million for the six months to June.

Half-year financial status of the company showed a drop of K41 million over the same period last year.

The result included an impairment of certain shipping assets, with a net impact to shareholders of K33 million.

Excluding this impairment, underlying profit attributable to shareholders was K63.7 million, an 11.2% decline on prior year.

This was in line with Steamships’ announcement on May 21 of softening conditions, the company said. 

The report also said that depreciation this year, before ship impairments, was K53 million against K48.3 million last year.

Interest on borrowings was K15.2 million against K14.9 million last year.

The group continued to be committed to capital investment programmes with expenditure for the six months reaching K110.1 million compared with K79.9 million last year. 

The group’s net operating cash flow generation remained strong at K125.5 million against K121.5 million last year.

An interim dividend of 50 toea per share has been declared and will be paid on the Sept 30.

Meanwhile, expected moderation in economic growth during the interim period until PNG LNG revenues come on stream had been amplified by the weakening of commodity prices. 

This combination of negative factors has been partially improved by government introducing a deficit budget to inject much needed stimulus in health, law and order, education and infrastructure spending.