Final Report to the Stock Exchange

24-Feb-2009 The Directors of Steamships Trading Company Limited advise a profit after tax and minority interests of K90,226,000 for the twelve months to December 2008, compared to a profit of K74,157,000 for same period in 2007.  This figure includes Steamships’ equity-accounted, share of associates’ results.  Sales of K465.8 million, increased by 14.5% against 2007 sales of K406.8 million.  Depreciation in 2008 was K39,136,000 against K35,608,000 in 2007, and interest on borrowings was K4,654,000 against K1,473.000 in 2007.  Capital expenditure for the twelve months was K133,657,000 against K77,752,000 in 2007. 

The result reflects the continuing improvement in trading performance from most businesses within the Group. Notably, the Shipping and Hotels Divisions continued to record strong results through the year, driven by increased demand for coastal and international shipping services and short term serviced accommodation. The demand for commercial, industrial and long term residential accommodation determined favourable results for the Property Division and reinforced decisions to embark on a number of substantial building projects. The Manufacturing Division also had a successful year despite the fluctuating cost of commodities and ingredients. All divisions benefited from stringent cost control and cost avoidance strategies. The results include the sale of the Hardware Division in November 2008.

The PNG economy provided stable exchange rates and low interest rates to allow the Group to continue to invest with confidence in new projects and assets, particularly in the Shipping, Property, Transport and Hotel Divisions. This is reflected in the 2008 capital expenditure figures. Given the global financial concerns, the group relies on stringent financial risk mitigation practices and comprehensive performance monitoring to ensure a track record of sound commercially viable investment is maintained. These long term investments are crucial to the growth of the Company and provide future opportunities for all the stake holders.

A final dividend of 86 toea per share (2007  -  75 toea per share), absorbing K26,667,084, will be paid on the 19th of May 2009.  This brings the total dividend for the year to K1.46 per share.

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