Steamships Trading Company recorded a drop of profit for the first six months of this financial year, compared to the same period in 2015.
In its half year report to the Port Moresby Stock Exchange, the directors of Steamships Trading Company Limited (Steamships) announced an unaudited profit after tax and minority interests of K43.5 million for the 6 months to June 2016, a decrease of K17.5 million
An interim dividend of 70 toea per share has been declared and will be paid on 30th September 2016, subject to their ability to secure foreign exchange for non-PNG shareholders.
The report states that the drop is a result of current economic conditions of the country.
“The year on year result reflects a weakening level of economic activity in PNG following the initial stimulus from investment in LNG production and the fall in global commodity prices, upon which much of the economy depends,” the report stated.
“Consequently, there are generally excess capacity and reduced profit margins in most businesses. Investment in the major industrial sectors has fallen which, combined with an acute lack of foreign currency, has resulted in reduced domestic consumption.
“Trading has been difficult so far this year and Steamships’ sales have declined 5.6 percent to K376.8 million, compared to last year’s 399.2 million.”
The company operates shipping, land transport, properties and manufacturing business in Papua New Guinea.