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12 March 2020 ↓

Steamships records an increase in sales revenue in 2019

2019 was a difficult year for PNG after the euphoria of hosting the APEC summit in late in 2018. The economy remained weak in the absence of any progress on the much-needed investment in the resource sector and the uncertainty caused by the change of Government in May 2019 and the consequent significant readjustment of national debt further dampened sentiment. The National Budget presented in November 2019 projects 2020 will record the largest expenditure and budget deficit in PNG’s history. The ongoing shortage of foreign currency in PNG continues to suppress economic activity.
Continued budget support from multilateral agencies will be essential and likely to entail economic reforms that will impair economic activity in the short term. 2019 was a challenging year for the private sector as a whole and Steamships diverse business activities being closely integrated to the domestic economy were not immune to the negative impacts of the slowdown. Steamships’ sales revenue increased 4.3% to K585.1 million against last year’s K560.8 million, on a continuing basis with improved revenue for Consort offsetting declines for Pacific Palms Property and Coral Sea Hotels.
Depreciation in 2019 was K82.3 million against K83 million in 2018, and interest on borrowings (excluding capitalised interest) was K9.8 million against K10.3 million in 2018. Capital expenditure for the year was K93 million (with capitalised interest of K1.0 million) against K56.1 million (with capitalised interest of K1.7 million) in 2018.
The group’s net operating cash flow generation declined 9.7% to K105.4 million against K116.7 million in 2018. The cash balance at year end is K100.8m. A final dividend of 55 toea per share has been proposed and will be paid following approval at the company’s annual general meeting on the 17th of June 2020, subject to Steamships’ ability to secure foreign exchange for non PNG shareholders. This brings the total dividend for the year to 80 toea per share (2018 = 165 toea per share). The dividend is unfranked and there is no conduit foreign income.

Significant items
The gain on sale of properties is principally attributable to the sale of a plot of land in Port Moresby by the Company to an associated company, Harbourside Developments Ltd, being the site for the new mixed-use development Harbourside South.


Logistics

Consort Express Lines embarked on a significant turnaround programme in 2019 in the face of a highly competitive and depressed coastal liner and projects shipping market. This has started to show results with improved fleet and schedule reliability and customer service. New systems and management have been introduced and Consort’s results are improving. While investment in the resource sector remains weak, the focus is on the liner service with opportunities for projects and charter work, hopefully forthcoming later in 2020.

The Joint Venture Port Services businesses had a steady performance in 2019, recovering from the loss of the International Terminal Operator concessions in Port Moresby and Lae in 2018. JVPS now manages stevedoring and handling in 10 ports around PNG as well as an equipment hire business, providing a vital, safe and efficient operation for these communities, whilst providing an economic return to the local community shareholders.
East West Transport continues to grow its fleet and range of services in a steady profitable manner, winning some key new business in 2019 and maintaining a strong customer and fleet reliability focus. Pacific Towing experienced a modest year in its principal harbour towage work across ports in PNG from its main base at the Motukea port in Port Moresby. External towage work provided steady work in 2019 with tugs deployed throughout the region. Diving and life raft activity were steady. The company was engaged in a number of successful salvage and wreck removal operations in the region in 2019 and has established a strong reputation in this area.
Property & Hotels
Pacific Palms Property experienced a reduction in rental rates in 2019 in the face of increased competition and was unable to achieve the occupancy levels of the prior year and profit fell as a result. In response to growing competition, an upgrade programme was undertaken in Port Moresby and Lae to maintain its quality leadership position. Construction of the Harbourside second phase, Harbourside South, with residential, commercial and retail space, commenced mid-year and is on track for mid-2022 opening.
Coral Sea Hotels owns and manages nine properties in PNG and suffered from the increased capacity in Port Moresby coupled with the reduction in international arrivals. Nevertheless, CSH is committed to remain competitive through a sustained focus on investment in its quality service offering, food and beverage as well as the training and development of its staff.


Commercial
Colgate-Palmolive, (PNG) Limited a PNG incorporated joint venture, saw volume and sales revenue growth across all three categories of Oral Care, Personal Care and Home Care. Overall margin for the business was slightly lower than budget. Overheads were prudently managed to finish below prior year and in line with budget.


Trading Outlook
Whether the key resource projects proceed or not, 2020 is expected to be another challenging year for the PNG economy. We remain hopeful that resource projects will progress to binding agreements and subsequent significant investment that would be beneficial to the citizens of PNG and all the other stakeholders in the projects.
We remain firmly focused on the future and our commitment to the development of the country and people of PNG and the exciting opportunities that lie ahead.
 

31 January 2020 ↓

Highlander Hotel opens its new conference facility

Steamships division, The Coral Seas Hotels Group hosted the business community of Mount Hagen at a function on Thursday 30th January, to announce the opening of the city’s latest business venue, the brand new Highlander Hotel Conference Centre.
Able to accommodate up to 300 guests, the facility provides state of the art audio visual, call conferencing and technological capability, all complemented by superior catering and hospitality services. The modern, temperature controlled rooms and amenities are equipped to provide the ideal environment to discuss, transact, and share business ideas.
In his welcoming remarks, Rupert Bray, the Chief Operating Officer of Steamships Limited emphasized the company’s ongoing commitment to Mount Hagen, through its investment in the Highlander Hotel and other commercial ventures including Hagen Central.
“Mount Hagen is a very important PNG destination, for both economic and cultural reasons” remarked Mr. Bray. “It is the gateway to the food basket of PNG, the Highlands region, and a thriving economic hub that will facilitate and foster growth in the Agricultural, SME and tourism sectors. We’re delighted to bring a facility of this size to Mount Hagen, one that the whole community can share, and one that is capable of hosting both regional and national meetings and forums”.
The General Manager of the Highlander Hotel, Leo Berka, also welcomed the new addition to his hotel. “The hotel has recently undergone a facelift, with new improved rooms, and the new conference facility adds another dimension to what we can offer to visitors to Mount Hagen. The staff and I are looking forward to welcoming guests and providing them with a first class hotel experience”.

02 December 2019 ↓

Steamships celebrates its Family Fun Day in Lae

The Steamships Family Fun Day in Lae brought together the whole STC Lae community on Saturday 30 November at the Scrum Oval. The fun filled day had over 1,200 people including employees and their families from Pacific Palms Property, Coral Sea Hotels, JV Ports, Consort, East West Transport and Swire. The annual event had something for everyone, including bouncy castles, fun treats which included ice cream and candy floss, music, games and a BBQ.


On hand to help out on the day were Steamships Managing Director Michael Scantlebury and Chief Operating Officer Rupert Bray, who received good support from the General Managers of Consort and East West, along with senior staff members.
“We consider the Lae family fun day program to be an important event on our calendar. It’s just reward for our hard working employees on this side of the country, and provides a great opportunity for fun interaction between management, staff, and their families”, remarked Michael Scantlebury.
The planning committee had been working on the event and programme for the past two months according to Alythea Siraba from STC Corporate, who thanked the 10 volunteers from the Lae based companies for their assistance and contribution to a very enjoyable day.
The event was coordinated by The Right Connections, with supporting contributions from Colgate-Palmolive PNG Ltd, Ramu Agri, Theodist, Paradise Foods, Coca Cola Amital, and Guard Dog Security.

13 November 2019 ↓

Highlander Hotel is gearing up for the opening of the new conference facility.

Highlander Hotel is gearing up for the opening of the new conference facility.

 

At a cocktail party on the eve of the Steamships Board meeting in Mt Hagen the Chairman took the opportunity to

introduce the soon to be opened Highlander Hotel conference facility.

“We are excited to continue our plans into 2020 with the opening of this refreshed conference facility featuring

upscale amenities, modern designs and a dedicated staff,” remarked Geoff Cundle.

On hand to witness the soft opening was Sir Peter Ipatas, Steamships Board of Directors, Coral Sea Hotels

Management, Mt. Hagen business community as well as various community leaders.

The new facility offers meeting rooms for up to 300 guests with flexible solutions for various meeting and banquet

requirements. The facility will offer AV capabilities with LCD projectors and screens combined with superior high

quality image clarity. Functional seminars, birthdays, corporate dinners and wedding receptions can take place at the

conference rooms.

The conference centre is expected to open in phases starting 12 November 2019. “We are looking forward to

continuing our partnership with our guests and opening the doors to the new facility. Our excellent location is a

gateway to all businesses in the region and Highlander Hotel offers guests a variety of services including outdoor

pool, relaxing guest rooms, restaurants and meeting rooms”, said Peter Laigaard Jensen, Group General Manager of

Coral Sea Hotels.

The new facility exemplifies Steamships commitment to investment and partnership in the region and Coral Sea Hotels

are equally committed to building a meaningful and memorable experience for guests who chose to stay.

 

 

08 October 2019 ↓

Steamships Chiefs upsets Ela Ocean in intercompany netball.

The Steamships 2019 sporting calendar ended on a high note with the successful staging of the STC intercompany mixed netball competition. A total of sixteen teams took to the courts at the Rita Flynn Indoor Courts last Saturday, with 120 players vying for the prized Managing Director’s Cup.
After pool play, the teams qualifying for the play-offs included Grand Eagles, Gateway Dolphins, CHHO Hotties, Ela Ocean, Truckies Lae, Swire Sailors, Consort and STC Chiefs. 


The fast paced finals saw STC Chiefs from Head Office go head to head with Ela Ocean’s from the Ela Beach Hotel, in what was a nerve wrecking and close encounter. The Chiefs were the surprise victors as they upset the competitive Ela Ocean’s to claim the Managing Director’s Cup and bragging rights for the next twelve months.
“The roller coaster was a bit bumpy for us because Ela Ocean’s is a competitive team and we had to push hard in the second half of the games to edge one point ahead and win the competition” said Raga Vali, STC Chief’s Captain and Most Valuable Player of the Tournament.
Steamships mixed netball competition is one of three sports on the company’s annual sporting calendar. The intercompany competition brings together employees of the company’s six divisions; Consort, Coral Sea Hotels, Pacific Towing, Pacific Palms Property, JV Ports, East West Transport, as well as sister company Swire Shipping and J/V partner Colgate Palmolive.


East West Truckies entered a team from Lae to compete in the competition. The Lae side performed well to win the runner up award in the General Manager’s Cup.
Managing Director Michael Scantlebury was on hand to give out the awards which was witnessed by Rupert Bray, Chief Operating Officer and divisional managers.
“Steamships intercompany sports has a long history which started with Rugby Sevens 25 years ago and expanded to include softball and netball. It’s the perfect way to create inclusiveness and team building amongst our employees, and a great way to meet colleagues from various divisions. The great thing is everyone plays in the spirit of the game, and on the court everyone is equal. You might get the occasional whistle blown on the COO or even a General Manager for running in the wrong courts. It’s a fun day for everyone, “remarked Michael Scantlebury.
The competition was coordinated by Stephan Dawanincura from The Right Connections and international sporting elite Mona Lisa Leka who was the Tournament Director and her team of officials.
Steamships would like to thank its divisions, Mona Lisa-Leka, KB Stone Crew, The Right Connections, Heisi Andrews and his team at the Rita Flynn Courts.

21 September 2019 ↓

Steamships supports PNG saling cadets at Royal Papua Yacht Club

Steamships has come on board to proudly sponsor the Young Sailor’s Program this year.
Chief Operating Officer Rupert Bray was on hand on Sunday 29th September to present certificates to young Papua New Guinean sailing cadets at Royal Papua Yacht Club.
Mr Bray remarked, “Given our own maritime heritage, it seems appropriate to lend support to the development of young Papua New Guinean sailors. Sport offers essential developmental and pathway opportunities for children and young adults, and sailing is no exception. This programme will help to focus and nurture young talent, and who knows, may help to realise the Pacific, Commonwealth, and Olympic Games ambitions of one or two of the sailors”.     
On hand to witness the presentations were Aaron Batts, General Manager for Royal Papua Yacht Club, Upu Navu Kila Sr, and the organising committee.

The young sailors went through an intensive eight-day school holiday training program last week. The program was aimed at providing the sailors with Hobie 16 and Laser racing skills to enable their advancement to an internationally competitive level.
The program was facilitated by the successful Papua New Guinean sailor and trainer, Upu Navu Kila MBE. Mr Kila has previously competed successfully at the Pacific Games representing PNG, as well as at many overseas events. He has received an MBE from the Queen as well as PNG Logohu Medals for services to sports.
The intensive training programs are ongoing, with an international event being planned for 2020 at the RPYC to coincide with Independence Day celebrations. In thanking Steamships, Aaron Batt, General Manager of the RPYC said, “This will showcase our local sailing talent as well as our beautiful harbour and unique culture and hospitality. It’s great to have Steamships on board”.
 

12 August 2019 ↓

Steamships Rugby Sevens Celebrates More than 25 Years of Rugby

The Steamships Rugby Sevens ended with a high note despite wet conditions on Saturday at Bava Park.
Players and fans withstood the rain to cheer on their favourite teams go head to head at the finals.
The dual men and women’s competition saw the first games kick off at 8:30am.
The finals saw Swire Taikoo dominate the field in the first half of the game against East West Truckies to take out the Managing Director’s Cup.
In the women’s side it was an exceptional win for STC Corporate coming out the reigning champions for the Managing Director’s Cup against East West Truckies.
Chief Operating Officer Rupert Bray was on hand refereeing a couple of games as well as the finals. Rupert is no stranger to rugby Sevens.  Having played throughout school, university and the Royal Marines, Rupert became a World Rugby certified referee in Singapore and has refereed 15s and 7s matches all over Asia. Rupert is also a qualified touch rugby referee and coached both contact and touch in Singapore.
Aidan Toua who plays for the Japanese team Honda Heat presented the awards including a signed Australian Rugby Sevens jersey to the Player of the Tournament for both the Men and women’s category. Aidan previously played Super Rugby for the Queensland Reds and ACT Brumbies. His usual position is fullback. Aidan presented
The Steamships Rugby Sevens is experiencing an exponential experience with increasing teams each year for the men’s and women’s team.
New comers to the competition include Pacific Towing and Colgate.
The organising committee would like to thank everyone that assisted on the day including former Pukpuk and Tournament Director Paul Joseph and his technical team, Stephen Dawainincura from The Right Connection, Dr Kapua and his team and Hesi Andrews from Bava Park

10 May 2018 ↓

Coral Sea Hotels Partners with Singapore’s Premier Tourism & Hospitality Industry Trainer.

The Singapore Hotel Association and Education Centre (SHATEC) Global and Coral Sea Hotels have entered into a collaboration to train local PNG talent in undertaking upper management roles.

Under Coral Sea Hotels Hospitality College, a virtual college that represents CSH’s commitment to training and develop merited, passionate and positive-minded management, supervisory and rank & file level employees.

The first program, ‘Management Coaching & Mentoring’ is a six-module course that will be provided by SHATEC over a period of six months – three days per month, commencing this Wednesday (25th April, 2018) and concluding in September, 2018.

The first cohort consists of 18 selected participants from across the Coral Sea Hotels group. Participants who complete all six modules and pass a knowledge test will receive a ‘professional certificate in hospitality management’ awarded by SHATEC Global.

Marc Ehler, General Manager for Coral Sea Hotels, told the first 18 participants, “We expect that this ‘Management Coaching & Mentoring’ program will build a better future for you and your dependents while it also contributes to better results and growth of Coral Sea Hotels,” said
Ehler emphasized the significance of developing national talent for leadership roles within the Tourism and Hospitality Industry in Papua New Guinea. Being the leading group of hotels in Papua New Guinea, Coral Sea Hotels aims to develop, encourage and motivate nationals on a professional level to take up senior management positions, which is missing today.

The Management Coaching & Mentoring program is the first of the modules to be rolled out and CSH Hospitality College looks forward to an exciting year of training and development.

03 April 2018 ↓

Steamships contributes K50,000 to Quake relief

Steamships Trading Co Ltd has come on board to help assist victims of the recent earthquake in the highlands by donating K50,000 to The Salvation Army. Managing Director Peter Langslow presented the cheque to Colonel Kelvin Alley, the Salvation Army’s Territorial Commander, at the Steamships office yesterday. Peter Langslow said, “Our sincere condolences go out to everyone who has been affected by this terrible tragedy. Steamships marks its centenary this year and our businesses have stood with the people and communities of PNG through all the ups and down of the past 100 years. It’s therefore important to us now to show our tangible concern for the people affected by the earthquake. The Steamships board has committed K250,000 to earthquake relief and we are using this to support the activities of particular agencies and organisations with which we are partnered or associated around the country. We have had a very long and close relationship, over decades, with the Salvation Army in PNG, which does great work throughout the country and we know that every toea of this K50,000 donation will be put to great effect.” Col Kelvin in receiving the cheque expressed his gratitude to Steamship for this donation saying. “This will go a long way towards helping people who are still in need”. He went on to say that the money will be used solely to purchase medical supplies. A report from the salvos workers who have been deployed to the remote areas have found that basic medical attention is a critical need for the people. There is also a great need for food and clothing especially for the women and children. Charlie Clement, Health Advisor attached with the Salvo’s mentioned that the team has carried out medical work in Komo & Paio Aid Post, Mananda Evangelical Church of PNG’s Aid Post, which is located further away from Komo, Beneria Aid Post and the Hides Four area. He mentioned that most people treated were patients who were injured during the earthquake and others who came were in need of basic health care. “Salvos will purchase further medical supplies this week. This is approximately K30,000, and will be repeated again in another week or two in order for us to keep up a ready availability of medical supplies”, said Col Kelvin. The donation is timely and will assist the Salvos to continue the relief work that they are currently carrying out in the highlands.

06 March 2018 ↓

LAGA INDUSTRIES LENDS A HELPING HAND TO THOSE IN NEED

Laga Industries Limited, the Lae-based manufacturer of Gala Ice Cream, Highland Meadows Cooking Oil plus many other market leading PNG brands is donating around K25,000 worth of its products to the Kadovar Disaster Relief Appeal. The donated goods include around 6 pallets Tropical Oasis Purified Water, Gala Whole Milk Powder and Burst Chocolate Malt Drink Powder. The Disaster Relief Program is aimed to provide direct relief to the estimated 3,000 men, women and children who were evacuated from the islands Kadovar and Blup Blup last month and relocated to the mainland of Papua New Guinea due to the eruption of a volcano on Kadovar Island and the impending risk of another erupting on nearby Blup Blup Island. “Our hearts go out to the people of Kadovar and Blup Blup Island who have had to flee from their homes due to the volcanic eruptions on Kadovar Island, many of them were reportedly unable to take with them anything more than a billum, and are now in dire need of assistance in the way of food, clean water and basic commodities” said Gerard O’Brien, General Manager of Laga Industries. "Many of our staff have links to the region and directly appealed to the business to provide this very strong donation." Laga Industries – established nearly half a century ago, best known for the iconic brand Gala Ice Cream is also fully HACCP accredited, and well regarded for consistently producing high quality, great value and affordable products right here in PNG.

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Steamships Trading Company Limited

Level 5, Harbourside West, Stanley Esplanade

P.O. Box 1
Port Moresby
National Capital District
Papua New Guinea

Tel
(675) 3137400
WEBMAIL | PORTAL