Company directors advised a profit after tax and minority interests of K99 million for the 12 months to December last year, compared to a profit of K88.7 million for the same period the previous year.
However, according to the financial report, adjusting for significant items, the underlying profit attributable to shareholders decreased 25.9 per cent from K108.8 million in 2014 to K80.7 million in 2015.
The year on year result reflected expected continued weakening in economic conditions; the second half of the year has been adversely impacted not only by continued collapse in oil (withering mining sector investment) and depressed agricultural commodities (reducing domestic consumption), but also by the effects of El Nino with its consequent impact on our riverine shipping activity in Western Gulf.
As a consequence, last year has seen notable pressure across the economy and Steamships’ sales declined 12 per cent to K773.5 million against last year’s K879.3 million on a continuing basis.
Depreciation in 2015 was K102.1 million (excluding impairments) against K104.7 million in 2014, and interest on borrowings (excluding capitalised interest) was K26.0 million against K28.9 million in 2014.
Capital expenditure for the 12 months was K109.7 million (with capitalised interest of K1.5 million) against K201.3 million (with capitalised interest of K4.9 million) in 2014 reflecting a conscious slowdown in project activity in the economic climate.
The group’s net operating cash flow generation declined 8.1 per cent to K204.4 million against K222.5 million the previous year. Meanwhile, a final dividend of 35 toea per share has been proposed and would be paid following approval at the company’s annual general meeting on May 13, subject to ability to secure foreign exchange for non-PNG shareholders.
This brings the total dividend for the year to 130 toea per share (2014 = 140 toea per share).
The dividend is unfranked and there is no conduit foreign income.