Steamships’ stunning results

CONGLOMERATE Steam-ships Trading Co Ltd has had a stunning 75.5% increase in after-tax profit in the half-year to June, to a record K65.9 million, up from K38.2 million.The company's half-year results released to the Australian Stock Exchange showed that total revenues in the six months to 30 June this year had risen by 66% to K366.5 million from K220.8 million the previous year.Directors said: "Hotels, property and shipping divisions have had a solid six months to date, due to strong demand for their services."Divisional accounts showed that shipping and transport was the group's top profit spinner, contributing K32.7 million to group profit, followed by hotels with K14.5 million and property and investment with K14.3 million.Steamships directors said demand for hotel accommodation remained strong and that the Gateway and Ela Beach expansion projects in Port Moresby had been delayed by four months but were nearing completion."The 160-room Grand Papua Hotel development continues on schedule for completion next year," they said.The shipping operations also had a good half-year with high usage rates for vessels and good cost containment.Two newly-purchased barges and two tug boats have been fully commissioned starting last month.Other segments that did well included the stevedoring business and industrial and residential properties in Lae and Port Moresby.The directors said the manufacturing division had a poor start to the year but should see an improvement in the second-half due to consolidation of the Lae facility and an alternate distribution supply chain."The solid performance of the PNG economy, with its continuing stable exchange rate and low interest rates, has meant that the group has, as in previous years, been able to continue to invest with confidence in new projects and assets," they said, adding that long term investments would "grow the company".They said the second-half should see further improvement in earnings as current economic conditions persist "and the LNG project gains traction".