Posted By Staff Reporter
THE Papua New Guinea economy is expected to recover later this year and into 2022, Steamships Trading Company Ltd says.
The company stated in its half-year report for the 2021 financial year, that recent announcements by the Government on major resource development projects were encouraging.
The group’s Coral Sea Hotels experienced a good start to the year and benefited from the quarantine requirement for arrivals into PNG.
“The Ela Beach Hotel food and beverage offering improved considerably with a new restaurant, bar and take-away outlets which opened early this year,” the company said. “Cost management remained a key focus.
“Demand is currently stable but any relaxation of quarantine requirements will have a negative impact on second half performance.
“Steamships is adapting to meet the changing demand in the economy and positioning its businesses for a medium-term economic recovery.”
Meanwhile, subsequent to June 30, the group successfully negotiated the renewal part of its existing financing arrangements with a major bank in PNG.
“Also, after the period ended, Steamships agreed to sell its wholly owned subsidiary, Croesus Holdings Ltd, and indirectly wholly-owned subsidiary, Croesus Re PCC Ltd, both incorporated in the Isle of Man, to its majority shareholder John Swire & Sons Ltd at net book value.
“The valuation was supported by an independent accounting expert.
“The transaction was recommended by a sub-committee of the independent directors of the Steamships board and approved by the Steamships board.
“Completion of the transaction remains subject to approval from the Isle of Man Financial Services Authority.”
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