Steamships posts profit of K178m to shareholders

 STEAMSHIP Trading Company’s revenue grew by 11% with profit to shareholders after tax increasing by 12% to K178 million in 2012, according to the company’s report.

The company posted a revenue of K1,038 million and an operating profit of K296 million in the past financial year.

Capital expenditure in 2012 was K203 million of which 37% or K76 million was allocated to new investments which will come online over the next three years.

The company’s annual report revealed that performance in the first half of 2012 was weak due to the country’s national election, a slow-down in key export markets, financial instability in Europe and falling commodity prices.

Steamships’ logistics businesses were also weaker in 2012 due to congested wharf infrastructure,a general slowdown in projects and increasing competition on coastal trades.

However, a decisive electoral result provided greater business confidence in PNG, while the subsequent budget and good progress on the establishment of the LNG project led to a stronger second half.

Chairman WL Rothery said the company performed satisfactorily in 2012, despite a general slowdown in projects and increasing competition.

He said projectcargoandcharteractivityduringthemiddle of 2012 waslowerthanexpected.

“Butit improvedinthelatterpartof2012,”Rothery said.

The company’s propertyandhotelsdivisionperformedwell,withcontinuedgrowthinrevenueandprofitsandnewindustrialandcommercialproperties,aswell astheGrandPapuaHotel,addingtoSteamships’extensiveportfolios.

CargovolumesthroughPNG’smajorportswerestrongthroughouttheyearandcoastallinertradevolumesincreased,generatingincreasedbusinessforthestevedoringandagencydivisions.

Rothery said Steamships’performancewasbuiltonafocusoncostmanagement,improvedefficienciesandstrategicinvestments.

“Astrongcommitmenttoprovidingworld-classcustomerservice,toimprovingtheskillsandcapabilityofouremployeesandtoincreasingthehealthandwelfareofourcommunitiesstoodtheGroupingoodsteadthroughouttheyear,” he said.