ANNUAL REPORT | 2021
CONTENTS
Brief Profile of Steamships Group . . . . . . . . . . . . . 2
Financial Highlights . . . . . . . . . . . . . . . . . . . . 4
Chairman’s Report . . . . . . . . . . . . . . . . . . . . . 6
Directors’ Review . . . . . . . . . . . . . . . . . . . . . 8
Review of Operations - LOGISTICS . . . . . . . . . . . 10
Consort Express Lines . . . . . . . . . . . . . . . 10
Pacific Towing . . . . . . . . . . . . . . . . . . . 11
Joint Venture Port Services . . . . . . . . . . . . . 12
East West Transport . . . . . . . . . . . . . . . . 13
Review of Operations - PROPERTY AND HOSPITALITY . 14
Coral Sea Hotels . . . . . . . . . . . . . . . . . . 14
Pacific Palms Property . . . . . . . . . . . . . . . 15
Sustainability . . . . . . . . . . . . . . . . . . . . . . . 16
Corporate Governance . . . . . . . . . . . . . . . . . . 17
Financial Section . . . . . . . . . . . . . . . . . . . . . 18
Statements of Comprehensive Income . . . . . . . 18
Statements of Changes in Equity . . . . . . . . . . 19
Statements of Financial Position . . . . . . . . . . 20
Statements of Cash Flows . . . . . . . . . . . . . 21
Notes to the Financial Statements . . . . . . . . . 22
Independent Auditor’s Report . . . . . . . . . . . 58
Directors’ Report . . . . . . . . . . . . . . . . . . 64
Stock Exchange Information . . . . . . . . . . . . 69
Company Directory . . . . . . . . . . . . . . . . . . .
IBC
Steamships Annual Report 2021 1
BRIEF PROFILE OF STEAMSHIPS GROUP
With over 100 years of operations in Papua New Guinea, Steamships Trading Company Limited
(Steamships) is a committed investor in Papua New Guinea. The Group is a well-established
business conglomerate with diverse commercial interests and listings on both the Australian
and PNG’s National Stock Exchanges.
Steamships has a vision to build a valuable and profitable business that is widely respected as
being the best group to work for and with which to do business.
Customer Focus – Our customers are the final judges
of our success or failure. We understand and respond
to the needs of our customers.
People Development – We value a working
environment that fosters innovation and encourages
personal development and learning.
Humility – We believe in the need to respect and to
learn from others. To do this we must be aware of
our own limitations and to seek to understand other
perspectives.
Continuity – We take a long term view. We grow
our business sustainably and create enduring value
that earns the respect of our customers, our staff, our
communities and our shareholders.
•
•
•
Steamships is aware of its prominent position in the
community and its responsibility to serve that community.
The Group continues to be one of PNG’s largest private
sector employers and one of the largest supporters of
community initiatives in education, health and social
welfare. Steamships ensures
that core sustainability
concepts are embedded in its business models and systems.
The Group is wholly aware that its business goals cannot
be achieved unless this is the case. Steamships cannot
succeed without the engagement and support of the people
it employs, the loyalty and satisfaction of its customers, the
local communities and the environment in which it operates.
Steamships is still showing it has the resources and capacity,
vision and capability to meet the dynamic needs of a
growing country.
Integral to this vision are the following business strategies:
•
•
•
•
•
•
The long-term development of a diversified range of
businesses in which shareholder value can be created,
Employment of staff who we believe will further our
strategic objectives and will be committed to the group
for the long term and providing them with rewarding
careers,
Operational excellence in the way we conduct our
business,
Doing business in a sustainable manner, and
Commitment to the highest standards of corporate
governance.
The Group employs over 2,500 PNG citizens and non-
citizens in diverse divisions grouped under the operating
categories of Logistics, Property and Hospitality and
Commercial & Investments. Steamships core values include
the following:
•
•
•
Safety – We prioritise safety awareness and compliance
to ensure our business operations are conducted safely.
Integrity – Taking the more ethical and honest path;
honouring our commitments and delivering on
our promises; creating a bond of trust that sustains
relationships with our staff, customers, shareholders,
business partners and the communities in which we do
business.
Excellence – Our customers and colleagues expect us
to deliver high quality goods and services. If something
is to be done, we believe it should be done in the best
possible way.
2 Steamships Annual Report 2021
BRIEF PROFILE OF STEAMSHIPS GROUP
STEAMSHIPS’ ORGANISATIONAL STRUCTURE
STEAMSHIPS TRADING COMPANY
LOGISTICS
PROPERTY AND COMMERCIAL &
HOSPITALITY
INVESTMENTS
Consort Express
Lines
Pacific
Towing
East West
Transport
Port
Services
Pacific Palms
Property
Coral Sea
Hotels
Colgate
Palmolive JV
JV Port Services
(x16 JV LO Entities)
Harbourside
Development JV
Croesus
Pacific
Rumana JV
Wonye JV
Wonye No.2
Limited
Viva No 31 JV
Steamships Annual Report 2021 3
FINANCIAL HIGHLIGHTS
2021 FINANCIAL HIGHLIGHTS (including discontinued operations)
2021
K’000
2020
K’000
Change
%
Revenue (including discontinued operations)
Profit attributable to shareholders
Cash generated from operations
Net cash inflow before financing
Shareholders’ funds
External Borrowings
Earnings per share (toea)
Dividends per share (toea)
Shareholders’ funds per share
Underlying profit attributable to shareholders
Underlying earnings per share
Gearing ratio
Interest cover
Dividend cover
564,675
90,550
187,261
9,386
1,004,684
266,065
292
100
32.40
62,158
200
506,144
78,855
149,477
75,347
946,843
309,530
254
80
30.54
36,927
119
11%
15%
25%
(88%)
6%
(14%)
15%
25%
6%
68%
68%
16.5%
23
13.7%
11.5
2.5 4.6
20%
100%
(45%)
4 Steamships Annual Report 2021
FINANCIAL HIGHLIGHTS
SUMMARY OF PAST PEFORMANCE
2012
K’000
2013
K’000
2014
K’000
2015
K’000
2016
K’000
2017
K’000
2018
K’000
2019
K’000
2020
K’000
2021
K’000
INCOME STATEMENT (including discontinued operations)
Revenue
986,310 930,934 941,708
773,535 732,701
705,687 648,106 585,168 540,406 564,675
Profit before tax
Share of associates profit
Income tax expense
Minority interests
Net profit attributable to shareholders
Equity adjustment
Dividends paid or provided for the year
Earnings retained this year
79,747 134,789
265,574
3,843
9,697
14,188
(38,487)
(14,042)
(81,414)
(11,490)
38,609
(20,648)
88,655
177,700 114,011
3,062
136,042 118,686
5,865
(37,710) (35,677)
(4,664)
(2,415)
84,210
98,979
62,686 112,493
7,525
5,628
(32,621)
3,926
41,516
61,284
5,010
(54,420) (18,928)
2,629
49,995
5,828
69,529
63,813
4,026
11,198
(182)
78,855
88,248
5,062
(1,694)
(1,066)
90,550
-
(88,373)
89,327
(8,994)
(57,365)
47,652
-
(43,411)
45,244
2,206
-
(48,062) (40,291)
43,919
53,123
-
(32,559)
8,957
-
-
(26,357) (44,962)
5,033
43,172
-
2,950
(17,055) (35,659)
57,841
61,800
Underlying profit attributable to shareholders
(adjusted for significant items)
156,213 128,367 108,808
80,651
71,721
61,775
43,304
31,505
36,927
62,158
BALANCE SHEET
SHARE CAPITAL & RESERVES
Issued Capital
Retained Earnings
Shareholders’ funds
Non-controlling interests
EQUITY
Fixed Assets / Investment Properties
Investments in Associated Companies
Future Income Tax Benefit
Goodwill
Other assets
TOTAL ASSETS
24,200
24,200
24,200
24,200
24,200
24,200
652,978 689,777 711,764
817,764 896,105 860,843 922,643 980,484
677,178 713,977 735,964 789,087 833,006 841,964 920,305 885,043 946,843 1,004,684
24,200
24,200
764,887 808,806
24,200
24,200
84,322
16,245
761,500 736,884 766,737 836,602 881,837 878,154 940,028 902,790 963,826 1,020,929
19,723
16,983
36,190
17,747
47,515
48,831
30,773
22,907
38,687
1,023,861 1,066,393 1,115,123 1,072,955 1,068,892
66,445
36,458
36,680
36,914
80,491
80,491
400,480 284,200
997,125 890,576 970,928 945,075 933,983
39,367
41,586
67,196
2,571
2,311
30,250
80,002
76,433
76,433
294,800 470,810 360,385 428,703 464,635
1,491,651 1,565,111 1,628,807 1,627,298 1,536,708 1,469,373 1,504,778 1,451,643 1,488,213 1,516,989
33,193
31,471
33,521
- 21,081
80,491
93,617
17,183
411,920 352,549 366,479
65,276
1,683
76,433
36,992
1,010
76,433
Current Liabilities
Non-Current Liabilities
TOTAL LIABILITIES
221,560 352,541 148,286 229,779 198,688
370,396 230,390 190,621
369,659 212,209 400,567 294,608 297,372
359,755 597,837 671,449
730,151 828,227 862,070 790,696 654,871 591,219 564,750 548,853 524,387 496,060
541,292 184,646
249,404 470,225
NET ASSETS
761,500 736,884 766,737 836,602 881,837 878,154 940,028 902,790 963,826 1,020,929
RATIOS
Current assets to current liabilities
Borrowings to shareholders funds
Gearing
Tangible net asset backing per share (Kina)
Net profit to revenue %
Net profit to shareholders’ funds %
Underlying profit to shareholders’ funds %
Dividends per share (toea)
EPS (toea)
Underlying EPS (toea)
Earnings retained %
1.11
72.6%
39.2%
24.00
18.0%
26.2%
23.1%
285
573
504
50.3%
1.53
89.7%
46.5%
20.75
12.2%
16.0%
18.0%
185
368
414
41.8%
1.92
95.2%
47.8%
22.13
9.4%
12.0%
14.8%
140
286
351
51.0%
0.74
81.7%
43.1%
24.38
12.8%
12.5%
10.2%
155
319
260
53.7%
1.16
57.0%
34.6%
25.84
11.5%
10.1%
8.6%
130
272
231
52.2%
1.00
50.2%
33.1%
25.74
5.9%
4.9%
7.3%
110
134
199
21.6%
1.15
39.7%
28.2%
27.85
11.1%
7.6%
4.7%
165
224
140
62.1%
1.83
35.4%
19.5%
26.65
8.5%
5.6%
3.6%
80
161
102
10.1%
1.40
32.1%
13.7%
28.62
14.6%
8.3%
3.9%
80
254
119
78.4%
1.42
26.1%
16.5%
30.46
16.0%
9.0%
6.2%
100
292
200
63.8%
Notes
Earnings per share = profit attributable to shareholders / average shares in issue
Gearing = debt / debt plus equity
Interest cover = earnings before interest and tax / net finance charge
Dividend cover = profit attributable to shareholders / total dividend paid and provided
Steamships Annual Report 2021 5
CHAIRMAN’S REPORT
It has been two years since the outbreak of the global COVID-19 pandemic and unfortunately
the impact of the virus continues to be felt across all economies. Businesses have suffered from
travel restrictions and a general reduction in demand for goods and services. Steamships has
been no exception but has adapted well and I am pleased with the robust performance that has
been achieved under difficult circumstances.
Steamships’ hospitality group, Coral Sea Hotels, was deeply
impacted by border closures and restrictions on domestic
travel in 2020 but, after a slow start, benefited from the
demand for quarantine rooms in 2021. Conversely,
property occupancy and rental rates remained depressed
throughout the year, and this will continue for several
years as, without meaningful growth in the economy,
there will remain an over-supply of units throughout much
of Papua New Guinea. Our logistics businesses have
adjusted effectively to the operational constraints caused
by the pandemic and are responding to early signs of a
recovery in activity. In summary, after a disappointing
2020, and notwithstanding the lingering negative impacts
of COVID-19, 2021 saw an improvement in the group’s
performance.
to welcome
the Government’s
Steamships continues
attempts to broaden the base of the economy and rebalance
the allocation of benefits from resource projects. This is
an important long-term strategic goal that should promote
broader and sustainable economic growth and employment.
We are encouraged by the progress in new resource
projects with PNG-LNG moving forward and P’nyang under
negotiation. Disappointingly, it appears that Wafi-Golpu
and Pasca-A exhibit little immediate prospect for progress.
Porgera mine in Enga remains closed. It is hoped that
progress on all these projects, together with other initiatives,
notably investment in improved infrastructure, will stimulate
the economy in 2023 and beyond. Traditionally an election
year boosts economic activity but in 2022 the increasing
national budget deficit could constrain this stimulatory
effect.
Against a backdrop of the twin challenges of a weak
underlying local economy and the global implications of
COVID-19, Steamships’ businesses proved resilient in
securing overall revenue growth of 11% in 2021. Coral Sea
Hotels and Consort’s improved performance combined with
modest contributions from the other logistics businesses
were sufficient to offset a weaker result from Pacific Palms
Property. Underlying profit (before exceptional items) saw
a 68.3% improvement over 2020. Profit attributable to
shareholders increased 15% to PGK 90.6 million.
Coastal shipping continues to be a highly competitive
market with growth in domestic volumes constrained by
6 Steamships Annual Report 2021
CHAIRMAN’S REPORT
the lacklustre economy and small domestic manufacturing
base. Liner volumes carried in 2021 recovered on the back
of improved schedule reliability and enhanced customer
service. Project and charter activity was subdued and
prospects for improvement in 2022 hinge upon progress on
the major resource projects.
Pacific Towing had a disappointing year with reduced
harbour towage and the absence of salvage or emergency
towage work. With closed boarders, limited international
deep-sea towage was another drag on results. East West
Transport experienced reduced activity, particularly for its
aviation fuel cartage and warehouse businesses. Steamships
remains committed to the logistics sector and is seeking to
improve its customer proposition through greater integration
of its multi-modal capabilities.
Pacific Palms Property was challenged by oversupply
conditions in all sectors as demand continued to weaken
and additional supply entered the market. Residential rent
and occupancy levels were under significant pressure
with reduced demand due to COVID-19. Construction
of Harbourside South continued and is on schedule to
complete in the fourth quarter of 2022. Opportunities for
investment growth will continue to be actively explored.
Coral Sea Hotel’s performance reflected the impact of
COVID-19 restrictions on the travel sector for much of
2021. The company responded rapidly to the demand for
quarantine accommodation, and whilst conference and
associated food and beverage revenue were down, room
revenue was considerably better than in 2020. Quarantine
restrictions were relaxed at the end of the third quarter, but
a satisfactory performance was maintained through to the
end of the year.
The Colgate Palmolive joint venture was adversely affected
by distribution challenges caused by COVID-19. The
company was able to improve overall revenue compared
to 2020, with strong demand for cleaning and home care
products offsetting weakness in sales of oral and personal
care products.
in
remains confident
Steamships
the medium-term
prospects for the PNG economy and forecasts an improved
result for 2022 subject to caveats on a potential resurgence
of COVID-19 and a stable National Election process.
Management will remain focused upon productivity as
economic conditions remain uncertain, while remaining
vigilant to identifying growth opportunities.
PNG is our home and principal place of business.
Steamships will continue
to
PNG’s economic and social development. Over 85% of
Steamships’ staff are vaccinated and we will continue to
support our team as COVID-19 moves from the pandemic
to endemic phase.
to actively contribute
Steamships is well-positioned for growth and our team has
worked well under difficult circumstances. I thank all our
staff for their commitment and personal sacrifices during
what has been a challenging two years of the pandemic.
The team have been and will remain critical to the success
of Steamships we will continue to invest in the future
generation of Steamships leaders.
Steamships Annual Report 2021 7
DIRECTORS’ REVIEW
2021 was again a difficult year as the COVID-19 virus continued to impact the global economy.
The PNG economy remained weak. Restrictions imposed to limit the spread of the virus created
additional costs and uncertainty for businesses.
It was a difficult year for the PNG private sector as a whole
and Steamships diverse business activities, being closely
integrated to the domestic economy, were impacted by
the negative impacts of the COVID-19 virus and economic
slowdown. However, prudent cost management, a
dedication to customer service and cautious investment
have delivered much improved results in 2021 over the
prior year.
Steamships’ sales revenue on a continuing basis increased
11% to K563.9 million against last year’s K506.1 million,
with improved revenue for Coral Sea Hotels (resulting from
the requirement for international arrivals to quarantine for
up to 14 days) and Consort Express Lines, which offset
declines for Pacific Palms Property, East West Transport and
Pacific Towing.
Depreciation in 2021 was K93.8 million against K88.3
million in 2020. Interest on net borrowings (excluding
capitalised interest) was K4.0 million against K8.9 million
in 2020. Capital expenditure for the year was K89.7 million
against K66.7 million in 2020.
The group’s net operating cash flow generation increased
25% to K187.2 million against K149.5 million in 2020. The
cash balance at year end is K61.3 million.
A final dividend of 65 toea per share has been proposed
and will be paid after the Annual General Meeting on 17th
June 2022, subject to Steamships’ ability to secure foreign
exchange for non-PNG shareholders. As there was an
interim dividend paid during the year of 35 toea per share,
the total dividend for the year is 100 toea per share (2020:
80 toea per share). The dividend is unfranked and there is no
conduit foreign income.
Net Profit attributable to shareholders
90,550
78,855
14.8%
Add back/(less) impact of significant items (post tax and minority interests)
Impairment of Fixed Assets, Goodwill (incl Vessels)
-
919
Recognition of tax losses previously not recognised, net of deferred tax movements
(22,869)
(25,197)
2021
K000’s
2020
K000’s
Change
Fixed Assets Write Off
Refund of SWT Assessment
(Gain)/Loss on Disposal of Vessels
Gain on Sale of Properties
Reversal of vessel impairment
Salvage Profit
Total impact of significant items
100
-
-
-
(3,059)
(2,564)
(28,392)
613
(8,467)
(1,362)
(7,333)
-
(1,101)
(41,928)
Underlying profit attributable to shareholders
62,158
36,927
68.3%
8 Steamships Annual Report 2021
DIRECTORS’ REVIEW
Significant items
Following the amalgamation of wholly-owned subsidiary,
Consort Express Lines Ltd (“CEL”) with Steamships Ltd in
2019, previously unutilised tax losses from prior periods
were made available.
Coral Sea Hotels
Although Coral Sea Hotels (CSH) was impacted by
COVID-19, as international and domestic travel restrictions
significantly reduced demand for hotel rooms and dining,
there was increased revenue from the Government imposed
quarantine regulations, largely from the resource sector,
throughout 2021, albeit at low margins. CSH expanded its
food and beverage offering with the opening of new outlets
and a restaurant at Ela Beach Hotel and will continue to
explore opportunities to expand this sector.
Pacific Palms Property
Pacific Palms Property’s (PPP) net financial performance was
broadly in line with 2020, despite a slight fall in leasing
revenue. The impact of COVID-19 continued to affect
demand for premium residential units in Port Moresby.
Similarly, demand for commercial premises fell short of
expectation. However, demand for industrial and retail
units in Port Moresby was resilient. Outside of Port Moresby,
occupancy and yields were generally stable with both Lae
and Mt Hagen showing some strength. Construction of
Harbourside South continues to progress and is expected to
complete at the end of 2022.
Logistics
The logistics businesses, comprising Consort Express Lines
(Consort), East West Transport (EWT), Joint Venture Port
Services (JVPS) and Pacific Towing, are becoming increasingly
integrated to offer an improved service for customers.
Demand for scheduled liner shipping capacity was strong
throughout the year, despite COVID-19 restrictions late in
Q1. A focus on maintenance and operational efficiencies
continues to deliver improved fleet and schedule reliability.
Additional capacity is planned to be introduced in 2022.
JVPS performed well largely due to stronger-than-expected
activity with Consort and improved results from equipment
hire.
EWT business remained soft. Fuel transport was down due
to reduced air traffic, impacting demand for aviation fuel.
Freight movements in general were also below expectations
as was demand for depot and warehouse space. EWT has
invested in new trucks and will continue to do so in 2022 to
improve customer service and reliability.
Pacific Towing experienced a lower volume of harbour
towage jobs in 2021 compared to 2020. Non-harbour
towing operations also experienced reduced activity. It was
another quiet year for salvage opportunities.
Commercial
Colgate-Palmolive (PNG) Limited a PNG incorporated joint
venture, overcame distribution problems associated with
COVID-19 restrictions. Despite the challenges, Home Care
and Personal Care category sales revenue improved in 2021.
However, for Oral Care both volume and sales revenue fell
as customers changed their buying habits. Overall, sales
revenue and margin had a marginal improvement on 2020.
Trading Outlook
The National Elections in Mid 2022 are expected to generate
a modest increase in economic activity. There is also cause
for some optimism that some of the long-delayed resource
extraction projects will achieve meaningful progress. The
investment and job creation from these projects is essential
to the recovery and future development of PNG.
Nevertheless, 2022 is expected to be another challenging
year for PNG and Steamships.
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.
Steamships Annual Report 2021 9
REVIEW OF OPERATIONS - LOGISTICS
CONSORT EXPRESS LINES
Consort’s liner performance in 2021 was broadly in line
with the expectations laid out at the start of the year with
improved volumes over 2020.
Consort’s project and charter business again performed in
line with expectations and again significant new resource
investments have not materialised as shipping volumes in
2021. The outlook for new resource investments and related
shipping activities looks more positive in 2022-3.
COVID-19 has not materially impacted trading on a full
year basis. There were periods of suppressed demand in
certain provinces alongside lockdowns, but that was then
correspondingly matched by increased demand once
the lockdown period ended. Consort continues to further
differentiate itself through improved systems and customer
service and plans to invest in additional container and
vessel assets in 2022.
Consort operates a fleet of 10 coastal vessels, all of
which are PNG flagged.
LINER SERVICES
Consort consistently connects 12 ports around PNG
to the main international gateway ports of Lae and
Port Moresby. The Company has scheduled services
to the North Coast, South Coast, New Guinea Islands,
Bougainville and Western Province. Consort proudly
serves the people of PNG by providing an important
supply link to many of the communities on its routes.
The Company carries a range of cargoes including
containerised, break-bulk, reefer, LCL and project
cargo. Consort transports cargo for a diverse customer
base from domestic manufacturers and wholesalers
to international liner carriers transhipping cargo. In
addition to owning and operating ships, Consort
manages PNG’s largest fleet of containers offering
customers easy access to a wide range of container
types.
PROJECT CHARTERS
Consort provides short and long-term vessel charters
specialising in shallow water river shipping, and
intermodal
implements and supports
develops,
logistics solutions linked to land-based services such
as road transport, cargo handling, storage, customs
clearance, lay down areas and warehousing.
10 Steamships Annual Report 2021
REVIEW OF OPERATIONS - LOGISTICS
PACIFIC TOWING
Pacific Towing is PNG’s leader in the provision
of a diverse range of marine services, enjoying
a reputation for excellence and reliability across
the region. The company is a full member of the
International Salvage Union and the International
Spill Control Organisation.
Core services include towage, mooring, salvage,
commercial diving, and life rafts (sales and servicing).
Although primarily operating in PNG waters, Pacific
Towing services broader Oceania and South East
Asia. The company operates a fleet of 25 vessels
(15 tugs and 10 associated support vessels) and has
fast responder salvage capability. Vessels are located
in five ports across PNG (being Port Moresby, Lae,
Rabaul, Kimbe and Madang). An additional tug
dedicated to harbour towage services continues to
be based in Honiara at the company’s operations in
the Solomon Islands.
The volume of harbour towage was steady in 2021. However,
non-harbour operations had a quiet year and there was a
lack of any salvage opportunities of note.
Pacific Towing celebrated a major milestone in its strategy
of developing local talent with six cadets graduating from
the Maritime Academy of Fiji. These deck and engine cadets
are now at work on tugs aiming to eventually progress
into masters and chief engineers. The Women in Maritime
cadetship programme continues to produce a high quality
of female cadets. Four new cadets will join the programme
next year bringing the total number of cadets to over 30.
Pacific Towing has committed to a re-fleeting programme
that will phase out older tugs over the next five years. The
newer tugs offer greater power and manoeuvrability and,
by the end of the five-year re-fleeting plan, all ports will be
serviced by tugs with azimuth stern drive propulsion.
There are promising signs that improvements to the
international shipping market are having a knock-on effect
for harbour towage globally and there is some optimism that
2022 will be a better year than 2021.
Steamships Annual Report 2021 11
REVIEW OF OPERATIONS - LOGISTICS
JOINT VENTURE PORT SERVICES
JVPS performed in line with expectation and continued to
focus on offering a safe, reliable and cost-effective service
to all customers. Security continues to be a strong focus and
technology has been deployed as a solution where possible
including biometric payroll, increased levels of surveillance,
and improved cargo tracking.
Joint Venture Hire Company (JVHC), which hires out heavy
machinery on wet and dry leases, continued to provide a
reliable service to all ports and a small number of external
customers. A new joint workshop, which is shared with
Consort, was opened in Lae. This workshop will be critical
to maintaining the growing fleet of heavy machinery.
In 2022, the focus will be on ensuring that JVPS provides
an efficient and cost-effective service as part of Steamships
Logistics. A key aspect of this will be to ensure CargoWise
is effectively used to control and track cargo movements.
Joint Venture Port Services
(JVPS) operate 16
businesses throughout the country including in the
principal ports of Port Moresby and Lae as well as
elsewhere on the mainland and on Bougainville,
New Ireland and New Britain.
The core port businesses offer a full range of
stevedoring and handling facilities. With a fleet of
specialist equipment, the businesses handle all types
of containers, as well as project cargo, break-bulk,
RO-RO, LO-LO, grains and cement. The stevedoring
companies are joint ventures between Steamships
and local landowner groups at the respective ports
around the country. Each joint venture employs a
local workforce and is structured in a manner so
that a significant share of earnings is returned to the
community in which the joint ventures operate.
JVPS is the only group of stevedoring and handling
companies in PNG to be ISO accredited for Quality,
Safety and Environment. The business continues to
work hard to provide a seamless logistics solution for
customers in PNG.
12 Steamships Annual Report 2021
REVIEW OF OPERATIONS - LOGISTICS
EAST WEST TRANSPORT
for
East West Transport (EWT) is one of Papua New
Guinea’s largest trucking companies, providing
a range of transport related activities. It is ISO
accredited
Environmental Management,
Occupational Health & Safety and Quality. Based
in Port Moresby, EWT has operations in Lae, Kimbe,
Rabaul, Madang, Wewak, Alotau and Kavieng. The
company has a sizable fleet of prime movers, heavy
and light trucks, forklifts and reach stackers ranging
from 2.5 to 80 tons in capacity. All equipment is
supported by localised workshop facilities, safety
teams and emergency response teams and vehicles.
EWT’s activities include bulk fuel, containerised
cargo, break-bulk cargo and depot services such
as equipment hire, warehousing and bonded or
unbonded yard storage. EWT also offers a licensed
customs cargo clearance service in Lae and Port
Moresby with the ability to clear cargo in any location
where EWT has a presence. The division capitalises
on its close relationships with sister companies in
shipping and stevedoring by offering specialised
end-to-end logistics and project solutions for the
mining, oil and gas sectors and new or existing
commercial sectors.
Following trends in 2020, this was another challenging
year for EWT. Fuel cartage regained some ground, but
aviation fuel volumes continued to be negatively impacted
by reduced flights and stabilised around 60% of pre-2019
volumes. The general freight market remains very price
competitive, particularly in Lae as a result of the temporary
closure of Porgera JV mine leading to an oversupply of
trucks.
Within this context, EWT has continued to focus on cost
savings and ways to improve customer service. There has
been a particular focus on improving operations in Lae and
more effectively integrating EWT’s operations with Consort
to provide ‘door-to-door’ delivery across the network. This
will be partly enabled through systems integration using
CargoWise, a transport platform that is currently in place at
Consort and being rolled out at EWT.
Pressure on rates is expected to remain intense. EWT is
focused on defending its market share and modest growth
is expected by more effectively providing a ‘door-to-door’
service as part of Steamships Logistics.
Steamships Annual Report 2021 13
REVIEW OF OPERATIONS - PROPERTY AND HOSPITALITY
CORAL SEA HOTELS
Coral Sea Hotels (CSH) is the largest hotel group
in PNG, managing eight hotels and one serviced
apartment block. The group comprises the Grand
Papua Hotel, the Gateway Hotel and Apartments,
the Ela Beach Hotel and Apartments, Whittaker
Apartments, and the Air Niugini Residence (under
a management agreement) in Port Moresby; the
Huon Gulf Hotel in Lae; the Highlander Hotel and
Apartments in Mount Hagen; the Bird of Paradise
Hotel in Goroka and the Cassowary Hotel in Kiunga.
The group also operates several food and beverage
(F&B) outlets including the fast-food brand Enzo’s,
Ela Beach Bakery and Bonjour Café in Deloitte
Tower.
Quarantine business drove strong demand throughout 2021
and, as a result, the year was a significant improvement
compared to 2020. Room occupancy was particularly
strong in all three hotels in Port Moresby, though regional
hotels also benefited from quarantine business, mainly from
resource companies.
The Grand Papua Hotel was once again the recipient of
the ‘World Luxury Hotel Award’ in the Australasia and
Oceania category. The hotel will be undergoing significant
re-investment over the next three years to renovate rooms,
upgrade public spaces and deliver an improved food and
beverage (F&B) experience. An affiliate franchise agreement
has been signed with Radisson Hotel Group to become part
of their upscale Individuals Collection and customers will
benefit from access to Radisson’s global loyalty programme
and brand presence.
Targeted investment into food and beverage continues as
part of CSH’s F&B strategy. A new All Day Dining menu has
been rolled out across all midscale hotels excluding Grand
Papua and has been well received. The new precinct at Ela
Beach Hotel, offering a bakery, Enzo’s, SALT Restaurant and
Beachside Bar has completed its first year of being open and
performed well.
The easing of quarantine restrictions softened demand
towards the end of 2021 and this is expected to remain the
case for 2022. The Port Moresby market remains significantly
oversupplied in hotel rooms. The focus will be on delivering
a consistent, high quality and affordable service across all
hotels and improving CSH’s food and beverage offering.
14 Steamships Annual Report 2021
REVIEW OF OPERATIONS - PROPERTY AND HOSPITALITY
PACIFIC PALMS PROPERTY
With a portfolio of over 200 properties across
Industrial
Residential, Commercial, Retail, and
asset classes in Port Moresby, Lae, Madang, Wewak,
Goroka, Mount Hagen, and Rabaul, Pacific Palms
Property (PPP) continues to be one of the premier
property developers and managers in PNG.
The division continues to develop and hold property
in the Residential, Commercial, Retail and Industrial
sectors with building and land assets located in
Port Moresby, Lae, Madang, Wewak, Goroka,
Mt. Hagen and Rabaul. PPP’s strategy of making
investments of scale and quality in diversified real
estate asset classes and quality in both established
and upcoming locations results in stable revenues,
profits, and cashflow.
In 2020, the global pandemic caused both occupancy
and rents to drop particularly in Port Moresby residential
and upmarket properties in general. By the end of 2021,
occupancy had improved across all sectors.
PPP’s joint-venture projects in Mount Hagen, Madang and
Port Moresby are performing to expectation. PPP’s flagship
development, the Harbourside East and West precinct
in Port Moresby, finished the year at full commercial
occupancy, anchored by the tenancies of Oil Search and
Westpac, and the mix of food and beverage offerings has
been well received.
The construction of Harbourside South continues to
progress despite challenges presented by COVID-19. Upon
completion, the fully integrated Harbourside precinct will
offer a range of premium commercial, retail and residential
units for lease. The Harbourside Precinct has demonstrated
the capabilities of PPP’s Property Development team to
offer end-to-end project management of large-scale projects
from feasibility studies to handover and of PPP’s Property
Management team to operate market-leading properties.
Burns Haus on Stanley Esplanade has been renamed
@345 and is under renovation to open in mid- 2022. The
three-storey building will become the long-term home for
Steamships (corporate head office and shared services),
Coral Sea Hotels and PPP.
Both Harbourside South and @345 will be built to industry-
leading green building standards and will be amongst the first
buildings in PNG to be EDGE certified. EDGE (“Excellence
in Design for Greater Efficiencies”) is an IFC initiative to
recognise energy efficiencies and quantify financial benefits
delivered to tenants.
There is optimism that 2022 will start to see a pick-up in
rates as COVID wanes globally and PNG’s economy opens
up. With its existing portfolio of ready for occupancy
properties and its land bank of properties with clean titles,
PPP is well positioned to benefit from an uptick in demand
for real estate once resource projects ramp up.
Steamships Annual Report 2021 15
SUSTAINABILITY
Steamships aspires to be a sustainable business that is purpose-led, that inspires our people
and partners to deliver lasting financial performance, equitable impact and societal value that
earns and retains the trust of all stakeholders. In 2021 Our People, Our Community and Our
Environment were the pillars of our Sustainability strategy and we added a fourth pillar of Our
Social Enterprise, which focuses on supporting SMEs to drive social change. As always Steamship’s
commitment to the principles of Sustainable Development has continued to underpin the way
that we operate and is essential to delivering value and social impact to Papua New Guinea.
The health and socioeconomic challenges of recent times
have elevated expectations about the role of business in
solving problems both within and beyond organisations.
Human connections are what makes a truly sustainable
organisation. Our Workplace Culture Survey was completed
this year, highlighting all the areas we excel in as well as
areas for improvement. This year our staple programs, Team
Leader Development and Graduate Development Program,
ran in tandem. Digital information-sharing platforms have
enabled our teams to stay connected and share information
with greater ease and helped teams to feel more connected
and engaged in spite of sustained restrictions on international
travel.
In the area of health and safety, 2020 was the year of the
mask, 2021 has been the year of the vaccine. Nationally
vaccination uptake has been disappointing, thus, to ensure
the health and safety of our team Steamships launched
Creating COVID Safe Workplaces, an internal incentive
campaign to encourage vaccination. The campaign included
a sweepstakes which was open to all vaccinated employees
and declared dependents. Our vaccination rate was 47% at
the beginning of the campaign and we set ourselves a goal
to hit 80% by January 1st, 2022. At the conclusion of our
internal campaign, we reached 78%, 2% shy of our goal.
The campaign included hosting three vaccination drives
for staff hosted at Steamships sites in partnership with Motu
Koita Assembly.
Steamships continues to prioritise community engagement,
this year the Community Grant Program maintained its
steadfast support of Buk Bilong Pikinini, The Salvation Army
House of Hope, Femli PNG and the Bel Isi Project. New
projects included funding for the Motu Koita Assembly
mobile vaccination clinic, CareerTrackers an organisation
that identifies diamonds in the rough so to speak at tertiary
level received sponsorship with a view to possibly being
a feeder program for our existing Graduate Development
Program. Steamships in partnership with Goodman Fielder
supported Caritas Technical College nutrition program.
Breakfast is the most important meal of the day, so the
school provides a modest but healthy breakfast for students.
Responsible and sustainable energy consumption continues
to be encouraged through the regular monitoring and
reporting of energy use, water use and environmental
emissions at an operational level.
In the area of social enterprise, Steamships partnered with
Emstret to launch PNG’s first start-up challenge which
involved 16 promising start-ups pitching their ideas to a
panel of judges. Steamships has offered subsidised freight
to help SMEs connect to buyers across the country and has
extended this offer to all SMEs using Shopsmart, the first
e-commerce platform for SMEs in PNG.
Steamships’ sustainability performance aligns with the
requirements of the Global Reporting Initiative (GRI), a
worldwide corporate transparency initiative that Steamships
has followed since 2013. The full GRI report and a
comprehensive Sustainability Report are available on the
Steamships website at www.steamships.com.pg
16 Steamships Annual Report 2021
CORPORATE GOVERNANCE
Steamships and its Board are committed to achieving and demonstrating the highest standards
of corporate governance and ethical behaviour, and they expect these standards from all
employees. The Group believes that the maximisation of long term returns to shareholders
is best achieved by acting in a socially responsible manner that recognises the interests of
community stakeholders.
Steamships is committed to:
•
•
•
Providing high-quality products and services to meet
customers’ needs;
Maintaining high standards of business ethics and
corporate governance;
Ensuring the safety and wellbeing of employees and
others with whom the Group has contact; and
•
Promoting sustainable business practice.
Steamships reports against the Australian Stock Exchange
(ASX) recommendations by addressing each key principle
in the order it is listed in the ASX guidelines. Each section
addressing a key principle includes references to relevant
information that appears elsewhere in the 2021 Annual
Report or on the Steamships’ website.
Steamships believes it complied with the Australian Stock
Exchange Corporate Governance Principles (the fourth
edition) during the twelve months ended 31 December
2021, except where noted in the Corporate Governance
Report.
Steamships’ Corporate Governance Report can be found
at https://www.steamships.com.pg/about-us/corporate-
governance
Steamships Annual Report 2021 17
STATEMENTS OF COMPREHENSIVE INCOME
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s)
Continuing Operations
Revenue
Other income
Operating expenses
OPERATING PROFIT
Finance income
Finance costs
Share of profit of associates and joint ventures
PROFIT BEFORE INCOME TAX
Income tax credit / (expense)
PROFIT FROM CONTINUING OPERATIONS
PROFIT FROM DISCONTINUED OPERATIONS
Consolidated
Parent Entity
Note
2021
2020
(Restated)
2021
2020
3(a)
3(a)
3(b)
3(e)
3(e)
4(b)
5(a)
25
563,929
505,065
-
-
(476,543)
(432,801)
87,386
9,817
72,264
7,110
(13,835)
(16,406)
5,062
88,430
(1,694)
86,736
4,880
4,026
66,994
11,198
78,192
845
7,323
38,305
(1,226)
44,402
98
-
-
44,500
(276)
44,224
-
9,443
2,925
(2,137)
10,231
72
-
-
10,303
(187)
10,116
-
PROFIT FOR THE YEAR
91,616
79,037
44,224
10,116
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
attributable to:
Non-controlling interests
Shareholders
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
attributable to owners arises from:
Continuing operations
Discontinued operations
1,066
90,550
91,616
85,670
4,880
90,550
182
78,855
79,037
-
44,224
44,224
-
10,116
10,116
78,040
845
78,855
44,224
10,116
-
-
44,224
10,116
Basic and Diluted Earnings per share
Continuing & discontinued (toea)
Continuing (toea)
Discontinued (toea)
3(f)
3(f)
3(f)
292t
276t
16t
254t
251t
3t
These Statements of Comprehensive Income are to be read in conjunction with the accompanying notes.
Comparative period amounts have been restated to conform to presentation in the current year.
18 Steamships Annual Report 2021
STATEMENTS OF CHANGES IN EQUITY
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s)
Consolidated
Share
Capital
Retained
Earnings
Other
Total Capital Controlling
Reserves & Reserves
Interest
Total
Equity
Non-
BALANCE AT 1 JANUARY 2020
24,200
901,138
(40,295)
885,043
17,747
902,790
Profit for the year
Dividends paid 2020
-
-
78,855
(17,055)
-
-
78,855
182
79,037
(17,055)
(946)
(18,001)
BALANCE AT 31 DECEMBER 2020
24,200
962,938
(40,295)
946,843
16,983
963,826
Profit for the year
Other
Dividends paid 2021
-
-
-
90,550
2,950
(35,659)
-
-
-
90,550
2,950
1,066
-
91,616
2,950
(35,659)
(1,804)
(37,463)
BALANCE AT 31 DECEMBER 2021
24,200
1,020,779
(40,295)
1,004,684
16,245
1,020,929
Parent Entity
Share
Capital
Retained
Earnings
BALANCE AT 1 JANUARY 2020
24,200
Profit for the year
Dividends paid 2020
-
-
69,199
10,116
(17,055)
(17,055)
Total
Equity
93,399
10,116
BALANCE AT 31 DECEMBER 2020
24,200
62,260
86,460
Profit for the year
Dividends paid 2021
-
-
44,224
44,224
(35,659)
(35,659)
BALANCE AT 31 DECEMBER 2021
24,200
70,825
95,025
These Statements of Changes in Equity are to be read in conjunction with the accompanying notes.
There is no other comprehensive income.
Steamships Annual Report 2021 19
STATEMENTS OF FINANCIAL POSITION
Steamships Trading Company Limited As At 31 December 2021 (Amounts in Kina 000’s)
Current assets
Cash and cash equivalents
Term deposit
Trade and other receivables
Inventories
Income tax receivable
Asset held for sale
Non-current assets
Property, plant and equipment
Investment properties
Investments in related companies
Due from related companies
Income tax receivable
Intangible assets
Deferred tax assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Lease liabilities
Provisions for other liabilities and charges
Due to related companies
Due to minority shareholder
Borrowings
Non-current liabilities
Lease liabilities
Deferred tax liabilities
Provisions for other liabilities and charges
Borrowings
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Capital and reserves attributable to the
Company’s shareholders
Non-controlling interests
TOTAL EQUITY
Consolidated
Parent Entity
Note
2021
2020
2021
6
7
8
5(e)
10
10
11
4(a)
9
5(e)
12
5(c)
13
14
15
9
16
16
14
5(c)
15
16
17
63,788
-
178,295
23,009
10,000
8,234
283,326
545,566
388,417
39,367
167,682
13,627
76,433
2,571
1,233,663
1,516,989
91,804
2,080
48,239
2,787
160
53,618
198,688
59,474
18,470
9,928
209,500
297,372
496,060
1,020,929
24,200
980,484
1,004,684
16,245
1,020,929
142,424
8,063
125,568
17,282
23,923
4,987
322,247
550,737
394,338
36,992
106,456
-
76,433
1,010
1,165,966
1,488,213
61,689
2,662
55,398
4,864
160
105,006
229,779
70,428
14,743
9,937
199,500
294,608
524,387
963,826
24,200
922,643
946,843
16,983
963,826
-
-
39,514
-
64
-
39,578
23,592
-
51,752
9,399
-
-
661
85,404
124,982
-
-
-
29,957
-
-
29,957
-
-
-
-
-
29,957
95,025
24,200
70,825
95,025
-
95,025
2020
-
-
2,473
-
325
-
2,798
25,102
-
101,838
500
-
-
512
127,952
130,750
-
-
-
44,290
-
-
44,290
-
-
-
-
-
44,290
86,460
24,200
62,260
86,460
-
86,460
These Statements of Financial Position are to be read in conjunction with the accompanying notes.
For and on behalf of the Board:
31 March 2022
G.L. Cundle
Chairman
R.P.N. Bray
Managing Director
20 Steamships Annual Report 2021
STATEMENTS OF CASH FLOWS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s)
Consolidated
Parent Entity
Note
2021
2020
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
549,665
562,956
4,626
Payments to suppliers and employees
(357,467)
(405,047)
Interest received
Interest and other finance costs paid
Income tax paid
9,817
(13,835)
(919)
7,416
(12,460)
(3,388)
Net cash from / (used in) operating activities
19(a)
187,261
149,477
-
98
-
(164)
4,560
2,970
(1,815)
72
-
(427)
800
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and investment properties
(89,743)
(66,716)
(578)
(3,925)
Proceeds from sales of property, plant and equipment
Proceeds from disposal of subsidiaries, net of disposed cash
Investment in term deposits
Loans issued to associated companies
Dividends received
-
(44,056)
8,063
(52,327)
188
9,909
-
(8,063)
(17,879)
8,619
Net cash (used in) / from investing activities
(177,875)
(74,130)
-
-
-
-
-
-
-
-
4,823
4,245
9,443
5,518
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowings
Proceeds from borrowings
Loans received from subsidiaries
Loans repaid to associated companies
Purchase of additional shares in subsidiary
Lease repayments
Dividends paid
Net cash used in financing activities
NET (DECREASE) / INCREASE IN CASH HELD
NET CASH AT BEGINNING OF THE YEAR
NET CASH AT END OF THE YEAR
61,254
139,918
CASH COMPRISES:
Cash and cash equivalents
Bank overdrafts
6
16
63,788
(2,534)
61,254
142,424
(2,506)
139,918
These Statements of Cash Flows are to be read in conjunction with the accompanying notes.
(42,523)
-
-
-
-
-
-
-
-
-
26,854
10,737
(2,077)
(10,798)
-
(5,987)
(37,463)
(88,050)
(78,664)
139,918
-
(5,719)
40,829
99,089
(18,001)
(35,659)
(17,055)
(34,518)
(8,805)
(6,318)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Steamships Annual Report 2021 21
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
1.
Summary of significant accounting policies
The Company is a company limited by shares and is
incorporated and domiciled in Papua New Guinea.
These Group consolidated financial statements were
authorised for issue by the Board of Directors on
31 March 2022.
The Board of Directors has the power to amend the
financial statements after their issue.
(a) Basis of preparation
The financial statements have been prepared in
accordance with the Papua New Guinea Companies
Act 1997 (as amended) and comply with International
Financial Reporting Standards
IFRS
Interpretations Committee (IFRS IC) interpretations
applicable to companies reporting under IFRS and
other generally accepted accounting practice in Papua
New Guinea. The financial statements have been
prepared under the historical cost convention.
(IFRS) and
The preparation of financial statements in conformity
with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its
judgement in the process of applying the Company’s
accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where
assumptions and estimates are significant to the
financial statements are disclosed in Note 1(z).
(i)
Standards, amendments and
effective in the year ended 31 December 2021
interpretations
following
standards, amendments and
The
to existing standards became
interpretations
applicable for the first time during the accounting
period beginning 31 December 2021:
Amendments to IFRS 4, IFRS 7 and IFRS 16 Interest
Rate Benchmark Reform – Phase 2 (effective
1.1.21) - The Phase 2 amendments address issues
that arise from the implementation of the reforms,
including the replacement of one benchmark with
an alternative one.
Amendment to IFRS 4,‘Insurance contracts’ –
Deferral of IFRS 9. These amendments change the
fixed date of the temporary exemption in IFRS 4
from applying IFRS 9, Financial instruments until
1 January 2023.
•
•
The above changes did not have any material impact
on the Group.
(ii) Standards, amendments and
interpretations
issued but not yet effective for the year ended 31
December 2021 or adopted early.
22 Steamships Annual Report 2021
•
•
•
•
following
The
standards, amendments and
interpretations to existing standards have been
published and are mandatory for the entity’s
accounting periods beginning on or after 1 January
2022 or later periods, but the entity has not early
adopted them:
Amendment to IFRS 16, ‘Leases’ – COVID-19
related rent concessions (effective 1.4.21). On 31
March 2021, the IASB published an additional
amendment to extend the date of the practical
expedient from 30 June 2021 to 30 June 2022.
A number of narrow-scope amendments to IFRS
3, IAS 16, IAS 37 and some annual improvements
on IFRS 1, IFRS 9, IAS 41 and IFRS 16 (effective
1.1.22).
o
o
to
3,
IFRS
‘Business
Amendments
combinations’ update a reference in IFRS 3
to the Conceptual Framework for Financial
Reporting without changing the accounting
requirements for business combinations.
Amendments to IAS 16, ‘Property, plant
and equipment’ prohibit a company from
deducting from the cost of property, plant
and equipment amounts
from
selling items produced while the company
is preparing the asset for its intended use.
Instead, a company will recognise such sales
proceeds and related cost in profit or loss.
received
o
Amendments to IAS 37, ‘Provisions, contingent
liabilities and contingent assets’ specify which
costs a company includes when assessing
whether a contract will be loss-making.
Amendments to IAS 1, Presentation of financial
statements’ on classification of liabilities (effective
1.1.23). These narrow-scope amendments to IAS 1
clarify that liabilities are classified as either current
or non-current, depending on the rights that exist
at the end of the reporting period. Classification
is unaffected by the expectations of the entity or
events after the reporting date (for example, the
receipt of a waiver or a breach of covenant). The
amendment also clarifies what IAS 1 means when
it refers to the ‘settlement’ of a liability.
Narrow scope amendments to IAS 1, Practice
statement 2 and IAS 8 (effective 1.1.23). The
amendments aim to improve accounting policy
disclosures and to help users of the financial
statements to distinguish between changes in
accounting estimates and changes in accounting
policies.
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
•
•
Amendment to IAS 12 – Deferred tax related
to assets and liabilities arising from a single
transaction (effective 1.1.23). These amendments
require companies to recognise deferred tax
on transactions that, on initial recognition, give
rise to equal amounts of taxable and deductible
temporary differences.
IFRS 17 ‘Insurance contracts” (effective 1.1.23)
replaces IFRS 4. IFRS 17 will fundamentally
change the accounting by all entities that issue
insurance contracts and investment contracts with
discretionary participation features. The Group
is in the process of assessing the impact of the
application of IFRS 17.
Apart from the possible impact of IFRS 17, the
Group conducted investigations and does not
consider that there are any material measurement
or recognition issues arising from the release
of these new pronouncements that will have
a significant impact on the reported financial
position or financial performance of the Group.
(iii) Comparative information
Where necessary comparative figures have been
adjusted to conform to changes in presentation in the
current year.
(b) Foreign currency
The Company’s functional and presentation currency is the
Papua New Guinea Kina. Transactions in foreign currencies
have been translated into the functional currency at rates
ruling at the date of the transaction. Amounts payable to
and by the Group in foreign currencies have been translated
to the functional currency at rates of exchange ruling at
the year end. Gains and losses arising from movements in
foreign exchange rates are recognised in the statement of
comprehensive income when they arise.
(c) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the
assets and liabilities of all subsidiaries of Steamships
Trading Company Limited as at 31 December 2021
and the results of all subsidiaries for the year then
ended. Steamships Trading Company Limited and its
subsidiaries together are referred to as the Group or the
consolidated entity.
Subsidiaries are all entities over which the Group has
control, that is when the Group is exposed to, or has
rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through
its power over the entity.
Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are de-
consolidated from the date that control ceases.
The acquisition method of accounting is used to
account for business combinations by the Group (refer
to note 1(d).
Intercompany transactions, balances and unrealised
gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies
of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the
Group.
Non-controlling interests in the results and equity of
subsidiaries are shown separately in the consolidated
statement of comprehensive income, statement of
changes in equity and balance sheet respectively.
(ii) Associates
Associates are all entities over which the Group
has significant influence but not control generally
accompanying a shareholding of between 20% and
50% of the voting rights. Investments in associates are
accounted for using the equity method of accounting,
after initially being recognised at cost. The Group’s
investment in associates includes goodwill identified
on acquisition.
The Group’s share of its associates’ post-acquisition
profits or losses is recognised in profit or loss, and its
share of post-acquisition other comprehensive income
is recognised in other comprehensive income. The
cumulative post-acquisition movements are adjusted
against
investment.
Dividends receivable from associates are recognised as
a reduction in the carrying amount of the investment.
the carrying amount of
the
When the Group’s share of losses in an associate equal
or exceeds its interest in the associate, including any
other unsecured long-term receivables, the Group
does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the
associate.
Unrealised gains on transactions between the Group
and its associates are eliminated to the extent of the
Group’s interest in the associates. Unrealised losses
are also eliminated unless the transaction provides
evidence of an impairment of the asset transferred.
Accounting policies of associates have been changed
where necessary to ensure consistency with the
policies adopted by the Group.
Steamships Annual Report 2021 23
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
(iii) Joint ventures
Joint venture entities
Interests in joint ventures are accounted for using the
equity method after initially being recognised at cost as
for associates.
(iv) Changes in ownership interests
The Group treats transactions with non-controlling
interests that do not result in a loss of control as
transactions with equity owners of the Group. A
change in ownership interest results in an adjustment
between the carrying amounts of the controlling
and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests
and any consideration paid or received is recognised
in a separate reserve within equity attributable to
shareholders.
When the Group ceases to have control or significant
influence, any retained interest in the entity is re-
measured to its fair value with the change in carrying
amount recognised in profit or loss. This fair value
becomes the initial carrying amount for the purposes of
subsequently accounting for the retained interest as an
associate or financial asset. In addition, any amounts
previously recognised in other comprehensive income
in respect of that entity are accounted for as if the Group
had directly disposed of the related assets or liabilities.
This may mean that amounts previously recognised in
other comprehensive income are reclassified to profit
or loss.
If the ownership interest in a jointly controlled entity
or an associate is reduced but significant influence is
retained, only a proportionate share of the amounts
previously recognised in other comprehensive income
are reclassified to profit or loss where appropriate.
(d) Business combinations
The acquisition method of accounting is used to
account for all business combinations, regardless
of whether equity instruments or other assets
are acquired. The consideration transferred for
the acquisition of a subsidiary comprises the
fair values of the assets transferred, the liabilities
incurred and the equity interests issued by the
Group. The consideration transferred also includes
the fair value of any asset or liability resulting
from a contingent consideration arrangement
and the fair value of any pre-existing equity
interest
the subsidiary. Acquisition-related
costs are expensed as incurred. Identifiable assets
acquired and liabilities and contingent liabilities
in
24 Steamships Annual Report 2021
assumed in a business combination are measured
initially at their fair values at the acquisition
date. On an acquisition-by-acquisition basis, the
Group recognises any non-controlling interest
in the acquiree either at fair value or at the non-
controlling interest’s proportionate share of the
acquiree’s net identifiable assets.
The excess of the consideration transferred, the
amount of any non-controlling interest in the
acquiree and the acquisition date fair value of any
previous equity interest in the acquiree over the fair
value of the Group’s share of the net identifiable
assets acquired is recorded as goodwill. If those
amounts are less than the fair value of the net
identifiable assets of the subsidiary acquired
and the measurement of all amounts has been
reviewed, the difference is recognised directly in
determining profit or loss as a bargain purchase.
Where settlement of any part of cash consideration
is deferred, the amounts payable in the future are
discounted to their present value as at the date of
exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at
which a similar borrowing could be obtained from
an independent financier under comparable terms
and conditions.
Contingent consideration is classified either as
equity or a financial liability. Amounts classified as
a financial liability are subsequently re-measured
to fair value with changes in fair value recognised
in profit or loss.
Predecessor accounting is applied for business
combinations among entities and amalgamations
of entities under common control. Under this
method, the financial statements of the combined
entity are presented as if the businesses had been
combined from the date when the combining
entities were amalgamated. Assets and liabilities
the acquired or amalgamated entity are
of
stated at predecessor carrying values. Fair value
measurement is not required and no new goodwill
arises in predecessor accounting. Any difference
the
between
aggregate book value of the assets and liabilities
of the acquired or amalgamated entity at the date
of the transaction is included in equity in retained
earnings.
the consideration given and
(e) Revenue recognition
Revenue which represents income arising in
the course of the Group’s ordinary activities
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
is recognised by reference
to each distinct
performance obligation promised in the contract
with the customer when or as the Group transfers
the control of the goods or services promised in
a contract to the customer. Depending on the
substance of the respective contract with the
customer, the control of the promised goods or
services may transfer over time or at a point in
time. A contract with a customer exists when the
contract has commercial substance, the Group
and its customer have approved the contract and
intend to perform their respective obligations, the
Group’s and the customer’s rights regarding the
goods or services to be transferred and the payment
terms can be identified, and it is probable that the
Group will collect the consideration to which it
will be entitled in the exchange for those goods
or services. At the inception of each contract with
a customer, the Group assesses the contract to
identify distinct performance obligations, being
the units of account that determine when and how
revenue from the contract with the customer is
recognised. A performance obligation is a promise
to transfer a distinct good or service (or a series of
distinct goods or services that are substantially the
same and that have the same pattern of transfer)
to the customer that is explicitly stated in the
contract and implied in the Group’s customary
business practices. A good or service is distinct if:
-
-
the customer can either benefit from the good
or service on its own or together with other
readily available resources; and
the good or service is separately identifiable
from other promises in the contract (e.g.
the good or service is not integrated with,
or highly interrelated with, other goods or
services promised in the contract)
If a good or service is not distinct, the Group
combines it with other promised goods or services
until the Group identifies a distinct performance
obligation consisting of a distinct bundle of goods
or services.
As disclosed in Note 26, revenue from external
customers comes from the logistics business,
hotels & property business, and commercial
business.
Revenue from the logistics business includes
revenue from providing the following services:
freight and shipping activities, land transport
activities, towage and salvage activities, and sale
of goods.
Revenue from freight and shipping services, land
transport services and towage services is recognised
over time as the performance obligation (in this
case transport or towage activity) is performed
taking into consideration the days of shipment.
In the case of sale of goods (such as containers),
revenue is recognised at a point of time. Payment
terms for freight and shipping services and land
transport services are typically 30 days; payment
terms for towage services are typically within 30
days after completion of service delivery.
Salvage revenue is recognised over time as the
performance obligation (in this case salvaging
activity) is performed, based on the days of
provision of service, or at a point of time (upon
completion of the salvage job), depending on the
nature of the salvage activity and the contractual
terms. The Group recognises salvage revenue over
time if the customer simultaneously receives and
consumes the benefits provided by the Group’s
performance as the Group performs. In such cases,
the Group typically has a right to payment based
on work performed until the reporting date. The
Group recognises salvage revenue at a point in
time when the customer does not simultaneously
receive and consume the benefits provided by
the Group’s performance as the Group performs
and has no enforceable right to payment for
performance completed to date.
Payment terms for salvage work vary between
one and three months. Where salvage work
is completed but the amount of proceeds is
not known at the reporting date, revenue is
determined on the basis of expected proceeds
taking
into account estimation uncertainty.
The estimated amount of consideration will be
recognised as revenue only to the extent that it is
highly probable that a significant reversal in the
amount of cumulative revenue recognised will not
occur when the uncertainty associated with the
consideration is subsequently resolved.
to
incurs costs needed
The Company
fulfil
salvage contracts and defers these costs incurred
directly related to salvage work, if their recovery
is considered probable based on management’s
assessment. If management’s assessment suggests
the expenses are not expected to be recovered, the
estimated unrecoverable portion is expensed when
incurred. Probability of recoverability of initially
recognised deferred salvage costs is assessed at
the end of each reporting period. In the reporting
period when management’s assessment suggests
Steamships Annual Report 2021 25
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
that these expenses will not likely be recovered by
revenues i.e. the related contract asset is deemed
impaired, the estimated unrecoverable portion is
expensed. Deferred salvage costs are amortised
in profit or loss on a systematic basis consistent
with the pattern of recognition of the associated
revenue.
Revenue from the hotels business from provision
of services is recognised over time based on
the days of provision of service; payments for
provided services are made upon service delivery.
Revenue from sale of goods in the hotels business
is recognised at a point in time upon delivery of
goods under typical credit terms of 30 days or in
cash. Lease income from the property business is
recognised on a straight-line basis over the term of
the lease.
Revenue from the commercial business relates to
sale of goods and is recognised when the goods are
accepted by the customers, under typical payment
terms of 30 days after the delivery of goods.
The following other income is recognised across
the Group as follows:
Interest income - Interest income is recognised
using the effective interest method.
Dividend income - Dividends are recognised
when the right to receive payment is established.
(f) Income tax
The income tax expense or benefit for the period
is the tax payable on the current period’s taxable
income based on the notional income tax rate
adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences
between the tax bases of assets and liabilities and
their carrying amounts in the financial statements,
and to unused tax losses.
Deferred income tax is provided on temporary
differences arising between the tax bases of
assets and liabilities and their carrying amounts
in the financial statements. Deferred tax is not
recognised if it arises from the initial recognition
of goodwill or the initial recognition of an asset or
liability in a transaction which is not a business
combination and at the time of the transaction,
affects neither accounting profit nor taxable profit
(tax loss). Currently enacted tax rates are used in
the determination of deferred income tax.
Deferred tax assets are recognised to the extent
that it is probable that future taxable profit will be
available, against which the temporary differences
can be utilised.
26 Steamships Annual Report 2021
(g) Cash and cash equivalents
For the purpose of the statement of cash flows,
cash and cash equivalents includes cash on hand,
deposits held at call with banks and Treasury Bills
with an original maturity of up to 3 months. Bank
overdrafts are shown in current liabilities in the
statement of financial position.
(h) Receivables
Trade receivables are amounts due from customers
for merchandise sold or services provided in the
ordinary course of business. They are classified as
current assets if collection is expected within one
year. Receivables are recognised initially at fair
value and subsequently measured at amortised
cost using the effective interest method, less
provision for impairment.
(i)
Inventories
Inventories are valued at the lower of cost and net
realisable value. In general, cost is determined
on
the weighted average basis and, where
appropriate, includes a proportion of variable
overhead expenditure. Net realisable value is the
estimated selling price in the ordinary course of
business, less applicable variable selling costs.
(j) Non-current assets held for resale
(or disposal groups) are
Non-current assets
classified as held for sale if their carrying amount
will be recovered principally through a sale
transaction rather than through continuing use
and a sale is considered highly probable. They are
measured at the lower of their carrying amount and
fair value less costs to sell, except for assets such
as deferred tax assets, assets arising from employee
benefits, financial assets and contractual rights
under insurance contracts, which are specifically
exempt from this requirement.
An impairment loss is recognised for any initial or
subsequent write down of the asset (or disposal
group) to fair value less costs to sell. A gain is
recognised for any subsequent increases in fair
value less costs to sell of an asset (or disposal
group), but not in excess of any cumulative
impairment loss previously recognised. A gain or
loss not previously recognised by the date of the
sale of the non-current asset (or disposal group) is
recognised at the date of derecognition.
Non-current assets (including those that are part of
a disposal group) are not depreciated or amortised
while they are classified as held for sale. Interest
and other expenses attributable to the liabilities
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
of a disposal group classified as held for sale
continue to be recognised.
Non-current assets classified as held for sale and
the assets of a disposal group classified as held for
sale are presented separately from the other assets
in the balance sheet. The liabilities of a disposal
group classified as held for sale are presented
separately from other liabilities in the balance
sheet.
A discontinued operation is a component of the
entity that has been disposed of or is classified as
held for sale and that represents a separate major
line of business or geographical area of operations,
is part of a single coordinated plan to dispose of
such a line of business or area of operations, or is
a subsidiary acquired exclusively with a view to
resale. The results of discontinued operations are
presented separately in the income statement.
(k) Financial assets
The Group classifies all of its financial assets in
the measurement category ‘Financial assets at
amortised cost’.
its financial assets at
The Group classifies
amortised cost when the asset is held within a
business model whose objective is to collect the
contractual cash flows and the contractual terms
give rise to cash flows that are solely payments of
principal and interest (“SPPI”). Financial assets of
the Group that fall under this category are trade
and other receivables, bank balances, deposits
and cash, and loans to related companies.
At initial recognition, the Group measures a
financial asset at its fair value plus transaction costs
that are directly attributable to the acquisition
of the financial asset. Interest income from these
financial assets is included in finance income
using the effective interest rate method. Any gain
or loss arising on derecognition is recognised
directly in profit or loss and presented in other
gains and losses together with foreign exchange
gains and losses.
As of 31 December 2021 and 31 December
2020, the Group had no financial instruments
classified as financial assets at fair value through
other comprehensive income (“FVOCI”) - Equity
instruments (previously classified as available-
for-sale financial assets) or financial assets at fair
value through profit or loss (“FVTPL”).
Regular way purchases and sales of financial
assets are recognised on trade-date, the date on
which the Group commits to purchase or sell the
asset. Financial assets are derecognised when the
rights to receive cash flows from the financial
assets have expired or have been transferred and
the Group has transferred substantially all the risks
and rewards of ownership.
Financial assets are classified as current assets for
those having maturity dates of not more than 12
months after the end of the reporting period, and
the balance is classified as non-current
Impairment of financial assets
The Group recognises an allowance for expected
credit losses (“ECLs”) for all debt instruments and
financial guarantee contracts issued. ECLs are
based on the difference between the contractual
cash flows due in accordance with the contract
and all the cash flows that the Group expects to
receive, discounted at an approximation of the
original effective interest rate. The expected cash
flows will include cash flows from the sale of
collateral held or other credit enhancements that
are integral to the contractual terms. For financial
guarantee contracts, the ECL is the difference
between expected payments to reimburse the
holder of the guarantee debt instruments less any
amounts the company expects to recover from the
other party.
ECL is measured based on either the general
3-stage approach or the simplified approach.
The general 3-stage approach is applied for loans
to related parties and financial guarantee contracts
issued.
For credit exposures for which there has not been
a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses
that result from default events that are possible
within the next 12-months (a 12-month ECL). For
those credit exposures for which there has been
a significant increase in credit risk since initial
recognition, a loss allowance is required for credit
losses expected over the remaining life of the
exposure, irrespective of the timing of the default
(a lifetime ECL).
trade receivables,
For
the Group applies a
simplified approach in calculating ECLs. The
Group does not track changes in credit risk, but
instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Group
has established a provision matrix that is based on
its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and
the economic environment.
Steamships Annual Report 2021 27
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
Collective assessment
To measure ECL, trade receivables and other
receivables have been grouped based on shared
credit risk characteristics, such as days past due.
Individual assessment
Trade receivables, other receivables and amounts
due from related parties which are in default or
credit-impaired are assessed individually.
(l) Property, plant and equipment
All property, plant and equipment are initially
recorded at cost. Borrowing costs directly
attributable to the acquisition or construction of
qualifying assets are added to the cost of those
assets until the assets are ready for their intended
use. Land is not depreciated. Depreciation on
other items of property, plant and equipment is
calculated on the straight-line method to write
off the cost of each asset to their residual values
using the below rates which is reflective of their
estimated useful life as follows:
Buildings
Ships
Plant and fittings
Motor vehicles
2 – 4%
5 - 10%
10 - 33%
20 - 33%
Where the carrying amount of an asset is greater
than its estimated recoverable amount, it is written
down immediately to its recoverable amount.
Gains and losses on disposal of property, plant
and equipment are determined by reference to
their carrying amount and are taken into account
in determining operating profit.
Subsequent costs are included in the asset’s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with the
item will flow to the Group and the cost of the
item can be measured reliably. All other repairs
and maintenance are charged to the statements
of comprehensive income during the financial
period in which they are incurred.
(m) Investment properties
Investment properties include land held for long-
term capital appreciation and buildings leased out
under operating leases. Properties that comprise
a portion held to earn rentals and a portion for
own use or occupation will only be classified as
investment property if an insignificant portion
is held for own use or occupation. Investment
properties are recognised when it is probable
that future economic benefits associated with
the property will flow to the Group and the
28 Steamships Annual Report 2021
cost of the investment property can be reliably
measured. Investment properties are stated at cost
less accumulated depreciation and accumulated
impairment losses. Transaction costs are included
on initial measurement. Borrowing costs directly
attributable to the acquisition or construction of
qualifying assets are added to the cost of those
assets until the assets are ready for their intended
use. The fair values of investment properties are
disclosed in Note 11. These are assessed using
internationally accepted valuation methods,
such as taking comparable properties as a guide
to current market prices or by applying the
discounted cash flow method. Like property,
plant and equipment,
investment properties
are normally depreciated using the straight-line
method over similar useful lives.
(n) Goodwill
Goodwill represents the excess of the cost of
an acquisition over the fair value of the Group’s
share of the net identifiable assets of the acquired
business at the date of acquisition.
is capitalised and assessed
Goodwill
for
impairment annually or more frequently if events
or changes in circumstances indicate a potential for
impairment and is carried at cost less impairment
losses. Any impairment is recognised immediately
as an expense and is not subsequently reversed.
Gains and losses on the disposal of an entity
include the carrying amount of goodwill relating
to the entity sold. Goodwill is allocated to cash-
generating units for the purpose of impairment
testing.
(o) Trade and other payables
These amounts represent obligations to pay for
goods and services that have been acquired in the
ordinary course of business from suppliers. They
are classified as current liabilities if payment is
due within one year or less. Trade payables are
recognised initially at fair value and subsequently
measured at amortised cost using the effective
interest method. The amounts are unsecured and
are usually paid within 30 days of recognition.
(p) Provisions
Provisions are recognised when the Group has a
present legal or constructive obligation as a result
of past events; it is probable that an outflow of
resource embodying economic benefits will be
required to settle the obligation; and a reliable
estimate of the amount of the obligation can be
made.
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
A liability for annual leave is recognised and
measured at the amount of unpaid leave at
amounts expected to be paid to settle the present
entitlements. A liability for long service leave is
recognised taking into consideration expected
future wage and salary levels, experience of
employee departures and periods of service,
discounted to present values.
A provision for estimated ship dry docking costs is
only recognised where the Group has a contractual
obligation under a Bare Boat charter agreement
from a third party. Dry docking costs relating
to ships not under third-party long-term charter
agreements are only recognised as incurred and
are capitalised to the extent that the previously
assessed economic benefits associated with the
asset are restored.
(q) Employee benefits
(i) Short term obligations
Liabilities for wages and salaries, including non-
monetary benefits, annual leave and accumulating
sick leave expected to be settled within 12 months
after the end of the period in which the employees
render the related service are recognised in
respect of employees’ services up to the end of the
reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.
The liability for annual leave and accumulating
sick leave is recognised in the provision for
employee benefits. All other short term employee
benefit obligations are presented as payables.
(ii) Other long-term employee benefit obligations
The liability for long service leave and annual
leave which is not expected to be settled within
12 months after the end of period in which the
employees render the related service is recognised
in the provision for the employee benefits and
measured as the present value of expected future
payments to be made in respect of services
provided by employees up to the end of the
reporting period using the projected unit credit
method. Consideration is given to expected future
wage and salary levels, experience of employee
departures and periods of service. Expected future
payments are discounted using the market yields
at the end of the reporting period on national
government bonds with terms to maturity and
currency that match, as closely as possible, the
estimated future cash outflows.
(iii) Termination benefits
payable when
Termination
employment is terminated by the Group before the
benefits
are
normal retirement date, or whenever an employee
accepts voluntary redundancy in exchange for
these benefits. The Group recognises termination
benefits at the earlier of the following dates: (a)
when the Group can no longer withdraw the offer
of those benefits; and (b) when the entity recognises
costs for a restructuring that is within the scope of
IAS 37 and involves the payment of termination
benefits. In the case of an offer made to encourage
voluntary redundancy, the termination benefits
are measured based on the number of employees
expected to accept the offer. Benefits falling due
more than 12 months after the end of the reporting
period are discounted to their present value.
(r) Borrowings
Borrowings are recognised initially at fair value,
net of any transaction costs incurred, and are
subsequently measured at amortised cost using
the effective interest method. Borrowings are
classified as current liabilities unless the Group
has an unconditional right to defer settlement of
the liability for at least 12 months after the end of
the reporting period.
(s) Impairment of assets
Assets that have an indefinite useful life are not
subject to amortisation and are tested annually for
impairment. Assets that are subject to depreciation
or amortisation are reviewed for impairment
whenever events or changes in circumstances
indicate that the carrying amount may not be
recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying
value exceeds its recoverable amount, which
is determined as the higher of an asset’s fair
value less costs to sell and its value in use. For
the purpose of assessing impairment, assets are
grouped at the lowest levels for which there are
separately identifiable cash flows (cash generating
units).
(t) Borrowing costs
Borrowing costs incurred for the construction
of qualifying assets, which are assets that take a
substantial period of time to get ready for their
intended use or sale, are capitalised during the
period of time that is required to complete and
prepare the asset for its intended use or sale.
Other borrowing costs are expensed.
The capitalisation rate used to determine the
amount of borrowing costs to be capitalised is the
weighted average interest rate applicable to the
entity’s outstanding borrowings during the year, in
this case 4.13% (2020 – 5.85%).
Steamships Annual Report 2021 29
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
(u) Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The chief
operating decision maker, who is responsible for
allocating resources and assessing performance of
the operating segments, has been identified as the
Strategic Steering Committee.
(v) Earnings per share
Basic earnings per share is calculated by dividing
the profit attributable to equity holders of the
Group, by the weighted average number of
ordinary shares outstanding during the financial
year. There are no potential ordinary shares on
issue and hence the diluted earnings per share is
equal to the basic earnings per share.
(w) Goods and services tax (GST)
Revenues, expenses and assets are recognised net
of the amount of associated GST. Receivables and
payables are stated inclusive of GST. The amount of
GST recoverable from, or payable to, the Taxation
authority is included with other receivables or
payables in the balance sheet.
(x) Leases
Leases are recognised as a right-of-use asset and
a corresponding liability at the date at which the
leased asset is available for use by the Group.
Each lease payment is allocated between the
liability and finance cost. The finance cost is
charged to profit or loss over the lease period so
as to produce a constant periodic rate of interest
on the remaining balance of the liability for each
period. The right-of-use asset is depreciated over
the shorter of the asset’s useful life and the lease
term on a straight-line basis.
Assets and liabilities arising from a lease are
initially measured on a present value basis. Lease
liabilities include the net present value of the
following lease payments:
•
•
•
•
fixed payments
in-substance
fixed payments), less any lease incentives
receivable;
(including
variable lease payments that are based on an
index or a rate;
amounts expected to be payable by the lessee
under residual value guarantees;
the exercise price of a purchase option if the
lessee is reasonably certain to exercise that
option, and
30 Steamships Annual Report 2021
•
payments of penalties for terminating the
lease, if the lease term reflects the lessee
exercising that option.
The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be
determined, or the group’s incremental borrowing
rate.
Right-of-use assets are measured at cost comprising
the following:
•
•
the amount of the initial measurement of lease
liability;
any lease payments made at or before the
commencement date less any lease incentives
received;
• any initial direct costs, and
•
restoration costs.
Payments associated with short-term leases and
leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of
12 months or less. Low-value assets comprise IT-
equipment and small items of office furniture.
Extension and termination options are included
in a number of property and equipment leases
across the Group. These terms are used to
maximise operational flexibility
terms of
managing contracts. The majority of extension and
termination options held are exercisable only by
the Group and not by the respective lessor.
in
In determining the lease term, management
considers all facts and circumstances that create
an economic incentive to exercise an extension
option, or not exercise a termination option.
Extension options (or periods after termination
options) are only included in the lease term if
the lease is reasonably certain to be extended
(or not terminated). The assessment is reviewed
if a significant event or a significant change in
circumstances occurs which affects this assessment
and that is within the control of the lessee.
(y) Rounding of amounts
Amounts in the financial statements have been
rounded off to the nearest thousand Kina.
(z) Critical accounting estimates and judgments
Estimates and judgments are continually evaluated
and are based on historical experience and other
factors, including expectations of future events
that may have a financial impact on the entity
and that are believed to be reasonable under the
circumstances.
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
The Group makes estimates and assumptions
concerning the future. The resulting accounting
estimates will, by definition, seldom equal
the related actual results. The estimates and
assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year
are discussed below:
(i) Estimated impairment of goodwill
The Group
tests annually whether goodwill
has suffered any impairment. The recoverable
amounts of cash-generating units have been
determined based on value-in-use calculations.
These calculations require the use of estimates as
further detailed in Note 12.
the
factors affecting
and made an assessment whether any adjustments
to the weighted average rate on borrowings are
needed to reflect differences in secured assets,
lease periods compared to maturity of borrowings,
and other
incremental
borrowing rate. Based on assessment performed,
management concluded that the weighted average
interest rate on borrowings of approximately
4.5% p.a. approximates the rate that the Group
would expect to borrow to acquire the right-of-
use assets in relation to land leases and property
leases. If the incremental borrowing rate were 1%
higher/(lower), lease liabilities as of 31 December
2021 would be K5.0M lower and K9.4M higher,
respectively (2020: K6.1M lower and K10.1M
higher).
(ii) Estimated impairment of ships and other plant
2. Financial risk management
and equipment
The Group tests the recoverable amount of ships
and other plant and equipment when impairment
indicators are identified. Recoverable amounts
have been determined using the higher of fair
value less cost to sell and its value in use. Fair
value has been determined using market-based
information. Refer to Note 10.
(iii) Deferred tax assets relating to carry forward
tax losses
losses
is complex and
The analysis of the recognition and recoverability
of the deferred tax assets relating to carry forward
tax
judgmental and
estimating future taxable income is based on
assumptions that are affected by expected future
market or economic conditions. For management’s
judgments in relation to recoverability of deferred
tax assets, refer to Note 5.
(iv) Incremental borrowing rate relating to lease
liabilities
the weighted average
As disclosed in Note 14, management assessed
that
interest rate on
collateralized borrowings obtained from financial
institutions during 2021 and previous years of
4.5% approximates the incremental borrowing
rate at the date of initial adoption of IFRS 16 and at
31 December 2021. Therefore, this rate has been
used for discounting lease payments arising from
state land leases and property leases. In making
this judgment, management considered the period
of leases (including extension and termination
options), the quality of leased assets compared to
assets used as collateral for relevant borrowings
The Group’s activities expose it to a variety of financial
risks including market risk (including currency, and
interest rate risk), credit risk, liquidity risk and capital
risk. The Group’s overall risk management program
focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the
financial performance of the Group. Risk management
is carried out under policies approved by the Board of
Directors.
(a) Market risk
(i) Foreign exchange risk
The Group engages in international purchase
transactions and is exposed to foreign exchange
risk arising from various currency exposures,
primarily with respect to the Australian dollar.
Foreign exchange risk arises from recognised
assets and liabilities.
The Group’s foreign currency purchases do not
represent a significant proportion of the Group’s
costs and as such exposure to foreign currency risk
is minimal. It is not the Group’s policy to hedge
foreign currency risk. As the foreign currency
exposure is minimal no sensitivity analysis is
provided.
(ii) Price risk
The Group is not significantly exposed to equity
securities or commodities price risk.
(iii) Cash flow interest rate risk
The Group’s interest rate risk arises from long-
term borrowings. Borrowings issued at variable
rates expose the Group to cash flow interest rate
Steamships Annual Report 2021 31
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
risk. Borrowings issued at fixed rates expose the
Group to fair value interest rate risk. Long term
borrowings are a mix of fixed and variable rate
interest. It is not the Group’s policy to hedge cash
flow and interest rate risk.
At 31 December 2021, if interest rates on
PNG Kina-denominated borrowings had been
1% higher/lower with all other variables held
constant, post-tax profit for the year would have
been K3,648,000
lower/
higher, mainly as a result of higher/lower interest
expense on floating rate borrowings.
(2020: K4,394,000)
(b) Credit risk
The Group has no significant concentration
of credit risk and it is not the Group’s policy to
hedge credit risk. The Group has policies in place
to ensure that sales of products and services are
made to customers with an appropriate credit
history and has policies that limit the amount of
credit exposure to any one customer. Where credit
limits were exceeded during the reporting period
management has made provision for amounts
considered uncollectible.
The Group has the following types of financial
assets that are subject to the expected credit
loss model: trade receivables, other receivables
(including inter- company receivables) and loans
to related parties. While cash and cash equivalents
are also subject to the impairment requirements of
IFRS 9, impairment loss is immaterial.
respectively and
The Group applies the IFRS 9 simplified approach
to measuring expected credit losses, for all
financial assets, other than loans to related parties
and other receivables. To measure the expected
credit losses, trade receivables have been grouped
based on shared credit risk characteristics and the
days past due. The expected loss rates are based
on the payment profiles of sales over a period
of 36 months before 31 December 2021 or
the
31 December 2020
corresponding historical credit losses experienced
within this period. The historical loss rates are
adjusted to reflect current and forward- looking
information on macroeconomic factors affecting
the ability of the customers to settle the receivables.
The Group has analyzed GDP and employment
rate of PNG to be the most relevant factors, and
accordingly adjusts the historical loss rates based
on expected changes in these factors. Management
concluded that the impairment provision for trade
receivables is not materially affected by changes
in GDP and employment rate.
32 Steamships Annual Report 2021
For loans to related parties and other receivables, the
Group applies a ‘three-stage’ model for impairment
based on changes in credit quality since initial
recognition, as summarised below:
•
•
•
•
A financial instrument that is not credit-
impaired on initial recognition is classified in
‘Stage 1’ and has its credit risk continuously
monitored by the Group.
If a significant increase in credit risk (‘SICR’)
since initial recognition is identified, the
financial instrument is moved to ‘Stage 2’ but
is not yet deemed to be credit impaired.
If the financial instrument is credit-impaired,
the financial instrument is then moved to
‘Stage 3’.
Financial instruments in Stage 1 have their
ECL measured at an amount equal to the
portion of lifetime expected credit losses that
result from default events possible within the
next 12 months. Loans in Stages 2 or 3 have
their ECL measured based on expected credit
losses on a lifetime basis.
Forward-looking information incorporated in the
model includes GDP Growth (%) of the Papua
New Guinea economy.
The Group considers a loan or other receivable to
have experienced a significant increase in credit
risk when one or more of the following quantitative
and qualitative criteria have been met: delay in
payment of over 30 days, early signs of cash flow/
liquidity problems, significant adverse changes in
business, financial and/or economic conditions in
which related party operates, actual or expected
forbearance or restructuring, significant change in
collateral value (for collateralised loans).
The Group defines a financial instrument as in
default, which is fully aligned with the definition
of credit- impaired, when it meets one or more
of the following criteria: delay in payment of over
90 days, significant financial difficulty of related
party (such as long-term forbearance, insolvency,
or probability of bankruptcy). A loan or other
receivable is considered to no longer be in default
(i.e. to have cured) when it no longer meets any of
the default criteria at the reporting date.
The Expected Credit Loss (ECL) is measured
on either a 12-month (12M) or Lifetime basis
depending on whether a significant increase in
credit risk has occurred since initial recognition
or whether an asset is considered to be credit-
impaired.
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
All of the Group’s loans to related parties as at
31 December 2021 and 31 December 2020 are
classified in ‘Stage 1’. Further, management assessed
that no material impairment provision on loans to
related parties is necessary given the following:
•
•
•
•
Loans to related parties are repayable on
demand and the Group expects to be able to
recover the outstanding balance of related
loans, if demanded;
Loans to related parties have not had significant
increase in credit risk since the loans were first
recognised;
There are no historic losses or write offs on
these loans;
As a result, impairment provision is based on
12-month expected credit losses, which results
in immaterial impairment provision.
Similarly, the Group’s other receivables as at 31
December 2021 and 31 December 2020 are
classified in ‘Stage 1’, as they are either current or
overdue up to 30 days, and the Group has not noted
a significant increase in credit risk.
(c) Liquidity risk
liquidity
risk management
implies
Prudent
maintaining sufficient cash and the availability of
funding through an adequate amount of committed
credit facilities. The Group manages liquidity risk
by maintaining sufficient bank balances to fund its
operations and the availability of funding through
committed credit facilities.
Management monitors rolling forecasts of the
Group’s liquidity reserve on the basis of expected
cash flows.
Undrawn finance facilities as of 31 December were
as follows:
2021
K’000
2020
K’000
Undrawn Facilities
273,000
243,000
The table below analyses the Group’s financial
liabilities which will be settled on a net basis into
relevant maturity groupings based on the remaining
period at the balance sheet date to the contractual
maturity date. The amounts disclosed in the table
are the contractual undiscounted cash flows.
At 31 December 2021
Borrowings
Borrowings from minority shareholders
Borrowings from related parties
Trade and other payables
Lease liabilities
At 31 December 2020
Borrowings
Borrowings from minority shareholders
Borrowings from related parties
Trade and other payables
Lease liabilities
Less than
1 year
K’000
Between 1
& 2 years
K’000
Between 2
& 5 years
K’000
Over 5
years
K’000
Total
K’000
Carrying
amount
K’000
(56,031)
(217,976)
(160)
(2,843)
(91,804)
(4,809)
-
-
-
(4,809)
(155,647)
(222,785)
-
-
-
-
-
-
-
-
(13,258)
(13,258)
(117,891)
(117,891)
(274,007)
(263,118)
(160)
(2,843)
(91,804)
(140,767)
(509,581)
(160)
(2,787)
(91,804)
(61,554)
(419,423)
(108,743)
(54,500)
(168,337)
(160)
(4,961)
(61,689)
(6,088)
-
-
-
(6,088)
(181,641)
(60,588)
-
-
-
(22,834)
(191,171)
(122,274)
(122,274)
-
-
-
-
(331,580)
(304,506)
(160)
(4,961)
(61,689)
(157,284)
(555,674)
(160)
(4,864)
(61,689)
(73,090)
(444,309)
The Group does not hold derivative financial instruments.
All loan covenants associated with borrowing arrangements have been met.
Steamships Annual Report 2021 33
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
(d) Capital risk management
(e) Fair value estimation
IFRS 7 ”Financial Instruments: Disclosures” requires
disclosure of fair value measurements by level of
the following fair value measurement hierarchy:
Quoted prices (unadjusted) in active markets for
identical assets or liabilities (level 1).
Inputs other than quoted prices included within
level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that
is, derived from prices) (level 2).
Inputs for the asset or liability that are not based
on observable market data (that is, unobservable
inputs) (level 3).
If one or more of the significant inputs is not based
on observable market data, the instrument is
included in level 3.
The Group does not hold any financial assets at fair
value.
The Group’s objectives when managing capital are to
safeguard the Group’s ability to continue as a going
concern in order to provide returns to shareholders
and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt.
The Group monitors capital on the basis of the gearing
ratio. This ratio is calculated as net debt divided by total
capital. Net debt is calculated as external borrowings
and unsecured loans less cash and cash equivalents.
Net debt for the purposes of the gearing ratio does not
include lease liabilities, trade and other payables and
provisions for other liabilities and charges. Total capital
is calculated as capital and reserves attributable to the
Company’s shareholders plus net debt. The gearing
ratios at each balance date were as follows:
2021
K’000
2020
K’000
Total external borrowing
and unsecured loans
Less: Cash & Cash
equivalents
Net debt
Total equity
Total capital
Gearing ratio
266,065
309,530
63,788
202,277
1,020,929
1,223,206
17%
142,424
167,106
963,826
1,130,932
15%
The Group are subject
to certain covenants
related primarily to its external borrowings. Non-
compliance with such covenants may result in
negative consequences for the Group including
declaration of default. The Group was in compliance
with covenants as at 31 December 2021 and 31
December 2020, as well as during respective years.
34 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
3. Operating results
(a) Revenue and other income comprises:
Revenue from contracts with customers
- Revenue from sale of goods
- Revenue from provision of services
Lease income
Dividend income
Total Revenue
Consolidated
Parent Entity
2021
2020
(Restated)
2021
2020
53,578
404,464
105,887
-
32,723
363,918
108,424
-
563,929
505,065
-
-
-
7,323
7,323
-
-
-
9,443
9,443
Other income (net)*
-
-
38,305
2,925
* Other income includes royalties, management fees and one-off gain on sale of a subsidiary in 2021 of K36.5M.
Comparative period amounts have been restated to conform to presentation in the current year.
The Group’s revenue from contracts with customers are recognised at a point in time and over time. Most of the revenue from the
provision of services is recognised over time, while revenue from sale of goods is recognised at a point in time. Further disaggregation
of revenue by segment is provided at Note 26.
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied)
as of 31 December 2021 that relates mostly to towage work which commenced in late 2021 and will be finalised within January
2022 is Knil (2020: Knil).
(b) Expenses comprise:
Cost of sales
Staff costs (note 3c)
Depreciation and amortisation
(Impairment Reversal)/Impairment of vessels
Fixed Assets write off
Electricity and fuel
Insurance
Security cost
Motor vehicle expenses
Other operating expenses/(income) - net
Total operating expenses
133,503
112,428
93,774
(4,370)
100
34,680
6,639
12,063
18,536
69,190
117,270
99,428
88,328
919
613
33,796
6,198
13,255
24,047
48,947
476,543
432,801
-
-
-
-
2,088
2,048
-
-
-
-
-
-
-
-
-
-
-
-
(862)
1,226
89
2,137
Comparative period amounts have been restated to conform to presentation in the current year.
(c) Staff costs:
Wages and salaries
Retirement benefit contributions
Accommodation and other benefits
90,448
5,062
16,918
112,428
85,730
3,877
9,821
99,428
Number of staff employed by the Group at year end:
Full Time
2,507
2,412
-
-
-
-
-
-
-
-
-
-
Steamships Annual Report 2021 35
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
3. Operating results (continued)
Consolidated
Parent Entity
2021
2020
2021
2020
(d) The operating profit before income tax is arrived at after charging and crediting the following specific items:
After charging:
Audit fees
Fees for non-audit services to Auditors
Bad and doubtful debts provided
Donations
After crediting:
Gain on sale of property, plant and equipment
Bad and doubtful debts released
Net foreign exchange transaction gains
(e) Cost of financing – net:
Interest expense*
Interest income
Net finance costs
1,046
1,083
5,379
1,103
2,063
1,484
-
1,044
530
5,610
1,258
9,278
185
96
13,835
(9,817)
4,018
16,406
(7,110)
9,296
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(98)
(98)
(72)
(72)
*The interest expense excludes capitalised interest which is KNil in 2021 (2020: KNil).
(f) Earnings per share
Basic earnings per share are calculated by dividing the net profit attributable to shareholders by the average number of ordinary
shares on issue during the year. There is no difference between the basic and diluted earnings per share.
Net profit attributable to shareholders
Average number of ordinary shares on issue (thousands)
Basic earnings per share (continuing and discontinued)
Basic earnings per share (continuing)
Basic earnings per share (discontinued)
90,550
31,008
292 toea
276 toea
16 toea
78,855
31,008
254 toea
251 toea
3 toea
4.
Investments in subsidiaries, associates and joint ventures
Consolidated
Parent Entity
2021
2020
2021
2020
(a) Investments are accounted for in accordance with the policy set out in Note 1(c) and relate to:
Investments in subsidiary companies (note 21)
Investments in associates (note 22)
Investments in joint ventures (note 23)
(b) Share of after tax profit in associates and joint ventures
Share of profit in associates
Share of profit in joint ventures
-
5,541
33,826
39,367
199
4,863
5,062
-
51,752
101,838
5,529
31,463
36,992
276
3,750
4,026
-
-
-
-
51,752
101,838
-
-
-
-
-
-
36 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
5.
Income tax
(a) Income tax expense
Current tax
Deferred tax
Adjustments for current and deferred tax of prior periods
Utilisation of losses in prior year tax return, Note 5(b)
Tax losses utilised in current year– previously unrecognised
(25,600)
Recognition of deferred tax asset for previously unrecognised
tax losses
(12,500)
1,694
Consolidated
Parent Entity
2021
2020
2021
2020
25,128
178
14,488
-
19,281
(2,822)
(2,460)
(10,518)
(14,679)
-
257
(149)
168
-
-
-
214
(27)
-
-
-
-
(11,198)
276
187
(b) The income tax in the Statement of Comprehensive Income is determined in accordance with the policy set out in note 1(f).
The effective rate of tax charged differs from the statutory rate of 30% for the following reasons.
Prima facie tax on profit before income tax
26,529
20,098
13,350
3,091
Non-taxable income - dividends
Expenses not deductible for tax
Tax losses utilised in current year– previously unrecognised
Income not assessable for tax
Adjustments for current and deferred tax of prior periods
Utilisation of tax losses in prior year tax return
Recognition of deferred tax asset for previously unrecognised
tax losses
Others
-
146
(25,600)
(1,966)
14,488
-
(12,500)
597
1,694
-
460
(14,679)
(3,408)
(2,460)
(10,518)
-
(691)
(2,197)
(2,833)
-
-
(11,045)
168
-
-
-
-
-
(71)
-
-
-
-
(11,198)
276
187
During 2020 the Registrar of Companies approved the amalgamation of Consort Express Line Limited and its subsidiary Consort
Investments Limited with Steamships Limited (Note 24). Upon amalgamation, the unrecognised tax losses of Consort Express Line
Limited are able to be utilised by Steamships Limited.
(c) The deferred tax (liability)/asset comprises:
Provisions
Tax losses
Lease liabilities
Prepayments and consumables
Property, plant and equipment
Right-of-use assets
Deferred tax asset
Deferred tax liability
13,301
12,500
18,466
(8,147)
(34,582)
(17,437)
(15,899)
2,571
(18,470)
(15,899)
9,212
-
21,927
(3,429)
(19,516)
(21,927)
(13,733)
1,010
(14,743)
(13,733)
-
-
-
-
661
-
661
661
-
661
-
-
-
-
512
-
512
512
-
512
Steamships Annual Report 2021 37
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
5.
Income tax (continued)
(d) The gross movement on the deferred tax account is as follows:
Consolidated
Provisions & accruals
Tax losses
Lease liabilities
Prepayments & consumables
Property, plant and equipment
Right-of-use assets
Total
Parent Company
Property, plant and equipment
Total
Beginning
Balance
Charge to
profit
Ending
Balance
9,212
-
21,927
(3,429)
(19,516)
(21,927)
(13,733)
4,089
12,500
(3,461)
(4,718)
(15,066)
4,490
(2,166)
13,301
12,500
18,466
(8,147)
(34,582)
(17,437)
(15,899)
512
512
149
149
661
661
(e) Income tax (receivable)/ payable is represented as by:
At 1 January
Income tax provision
Prior year (over) / under provisions
Utilisation of losses in prior year tax return, Note 5(b)
Tax losses utilised in current year
Utilisation of tax credits
Others
Tax payments made
Classified as:
- Current
- Non-current
Consolidated
Parent Entity
2021
2020
2021
2020
(23,923)
25,128
-
-
(25,600)
-
1,687
(919)
(23,627)
(10,000)
(13,627)
(23,627)
(9,507)
19,281
(2,460)
(10,518)
(14,679)
(2,670)
18
(3,388)
(23,923)
(23,923)
-
(23,923)
(325)
257
168
-
-
-
-
(164)
(64)
(64)
-
(64)
60
214
-
-
-
-
(172)
(427)
(325)
(325)
-
(325)
6. Cash and cash equivalents
Consolidated
Parent Entity
2021
2020
2021
2020
Cash and short-term deposits
63,788
63,788
142,424
142,424
-
-
-
-
The maximum exposure to credit risk at the reporting date is the fair value of cash and cash equivalents on the balance sheet. Cash
and short-term deposits are held with the banks resident in Papua New Guinea who have appropriate long term credit ratings.
38 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
7. Trade and other receivables
Trade receivables
Trade receivables related parties (Note 18)
Provision for impairment
Other receivables
Prepayments
(i) Credit losses
Consolidated
Parent Entity
2021
2020
2021
83,522
36,494
(12,736)
107,280
54,421
16,594
178,295
66,216
4,039
(11,359)
58,896
58,774
7,898
125,568
-
36,494
-
36,494
3,020
-
39,514
2020
-
-
-
-
2,473
-
2,473
As at 31 December 2021 and 31 December 2020, loss allowance was determined as follows for trade receivables:
31 December 2021
Current
More than 30 More than 60 More than 90
days past due
days past due
days past due
Total
Expected credit loss rate
0.1%-1%
1%-5%
5%-20%
20%-80%
10.6%
Gross carrying amount - trade receivables
Loss allowance
84,718
353
13,925
304
5,675
431
15,698
11,648
120,016
12,736
31 December 2020
Current
More than 30 More than 60 More than 90
days past due
days past due
days past due
Total
Expected credit loss rate
0.2%-3%
3%-8%
8%-24%
24%-60%
16.2%
Gross carrying amount - trade receivables
Loss allowance
33,901
709
13,692
767
5,619
568
17,043
9,315
70,255
11,359
Movement in the provision for impairment of trade receivables is as follows:
Opening balance
Impairments recognised during the year
Provision released
Write off
Total
Consolidated
Parent Entity
2021
11,359
5,379
(1,484)
(2,518)
12,736
2020
2021
2020
7,108
5,610
(185)
(1,174)
11,359
-
-
-
-
-
-
-
-
-
-
The creation and release of the provision for impaired receivables is included in operating expenses in the statement of comprehensive
income. Amounts charged to the provision account are generally written off when there is no expectation of recovering the balance
outstanding.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Group
does not hold any collateral as security in relation to these receivables.
(ii) Other receivables and prepayments
Other receivables generally arise from transactions outside the usual operating activities of the Group. These mostly include
receivables for rental bonds, re-insurance receivables and other tax receivables (such as GST receivables) and other non-financial
assets. These receivables are not interest bearing. Collateral is not normally obtained.
As at 31 December 2021 and 31 December 2020, most of the Group’s other receivables are current and classified as Stage 1 for
impairment provisioning purposes. The amount of other receivables overdue more than 30 days is not material, and the impairment
provision based on expected loss model is immaterial.
Prepayments relate to advance payments for expenses not yet incurred.
Steamships Annual Report 2021 39
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
8.
Inventories
Finished goods
Provision for obsolescence
Consolidated
Parent Entity
2021
2020
2021
2020
23,153
(144)
23,009
18,778
(1,496)
17,282
-
-
-
-
-
-
Inventories recognised as an expense during the year ended 31 December 2021 and included in cost of sales and cost of providing
services amounted to K20.1 million (2020: K13.1M). The provision for obsolescence of inventories during the year decreased by
K1.4 million (2020: by K0.1M increase).
9. Loans to/(from) related companies
Non-Current
John Swire & Sons Limited
Colgate Palmolive (PNG) Limited
Huhu Rural LLG
Pacific Rumana Limited
Harbourside Development Limited
Viva No.31 Limited
Wonye Limited
Wakang Inc.
Croesus Re PCC Limited
Loans to subsidiaries
Loans from associates and joint ventures:
Stevedoring associates
Loans from subsidiaries
Consolidated
Parent Entity
2021
2020
2021
2020
8,899
500
955
28,930
123,333
2,000
2,851
16
198
2,641
500
1,054
28,930
68,529
2,000
2,802
-
-
167,682
106,456
-
-
167,682
106,456
9,399
-
9,399
8,899
500
-
500
-
-
-
-
-
-
-
-
-
-
-
-
-
500
-
500
(2,787)
(4,864)
-
-
(2,787)
(4,864)
-
(29,957)
(29,957)
-
(44,290)
(44,290)
The loan to Harbourside Development Limited is secured and earns interest at 6.5%. The loan to Pacific Rumana Limited is unsecured
and earns interest at 9%. The loan from stevedoring associates is unsecured and incurs interest at 2%.
40 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
10. Property, plant and equipment
Consolidated
2021
Cost
Accumulated depreciation
(including impairment losses)
Property
Ships
Plant and
Vehicles
Right-of-use
Assets
Total
572,929
252,730
375,355
41,733
1,242,747
(216,831)
(162,013)
(309,155)
(9,182)
(697,181)
Net book value
356,098
90,717
66,200
32,551
545,566
329,927
103,856
72,515
44,439
550,737
44,633
12,232
22,363
-
-
-
-
-
(18,462)
356,098
-
-
4,370
-
(3,247)
(26,494)
90,717
-
530
(8,820)
-
-
-
-
-
-
-
-
(28,678)
66,200
(3,598)
32,551
79,228
530
(8,820)
4,370
-
(3,247)
(77,232)
545,566
Opening value
IFRS 16 adjustment
Additions
Lease agreements made during the year
Disposals
Writeback of impairment
Transfer to/from investment properties
Asset held for sale
Depreciation
Closing value
2020
Cost
Accumulated depreciation
(including impairment losses)
Net book value
637,910
246,719
449,013
50,023
1,383,665
(307,983)
329,927
(142,863)
103,856
(376,498)
(5,584)
(832,928)
72,515
44,439
550,737
Opening value
IFRS 16 Adjustment
Additions
Lease agreements made during the year
Disposals
Impairment
Transfer to investment properties
Asset held for sale
Depreciation
Closing value
364,841
112,661
-
15,815
-
(277)
-
(34,144)
-
(16,308)
329,927
-
21,030
-
(354)
(919)
-
(4,987)
(23,575)
103,856
87,828
-
13,793
-
-
-
-
-
45,316
(3,230)
-
5,441
-
-
-
-
(29,106)
72,515
(3,088)
44,439
610,646
(3,230)
50,638
5,441
(631)
(919)
(34,144)
(4,987)
(72,077)
550,737
The Group is committed to its plan to sell cargo vessels within 12 months from the reporting date. As the sales are considered highly
probable, the vessels are available for immediate sale and actions were taken to locate potential buyers (including active marketing
of the vessel for sale) prior to 31 December 2021 and 2020 respectively, these vessels are classified within line ‘Assets held for sale’
as at 31 December 2021 and 2020. In 2020, K0.9m impairment was recognised to reflect asset held for sale at its fair value less cost
to sell. Refer to Note 1(j).
Steamships Annual Report 2021 41
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
10. Property, plant and equipment (continued)
Parent Entity
2021
Cost
Accumulated depreciation (including impairment losses)
Net book value
Opening value
Additions
Disposals
Impairments
Depreciation
Closing value
2020
Cost
Accumulated depreciation (including impairment losses)
Net book value
Opening value
Additions
Disposals
Impairments
Depreciation
Closing value
Property
Plant and
Vehicles
Total
79,104
(56,864)
22,240
23,875
125
-
-
(1,760)
22,240
78,985
(55,110)
23,875
22,484
3,144
(15)
-
(1,738)
23,875
6,617
(5,265)
1,352
1,227
453
-
-
(328)
1,352
6,159
(4,932)
1,227
912
625
-
-
(310)
1,227
85,721
(62,129)
23,592
25,102
578
-
-
(2,088)
23,592
85,144
(60,042)
25,102
23,396
3,769
(15)
-
(2,048)
25,102
(a) Assets in the course of construction
The carrying amounts of the assets disclosed above include the following expenditure recognised in relation to property, plant and
equipment and investment properties which are in the course of construction:
Consolidated
Parent Entity
2021
2020
2021
2020
Property (classified as investment properties in note 11)
Plant and vehicles
Total assets in the course of construction
13,240
59,750
72,990
7,851
17,948
25,799
-
-
-
-
-
-
The cost of additions in 2021 did not include any capitalised borrowing costs (2020:KNil) in relation to qualifying assets. The Group
used a capitalisation rate of 4.13% p.a. to determine the amount of borrowing costs eligible for capitalisation.
(b) Impairment losses
During the year the Directors performed an impairment review on certain assets with impairment indicators. As a result of this
assessment, an impairment reversal of K4.4 million was recorded related to ships in the Consort business (2020: K0.9m impairment to
reflect asset held for sale at its fair value less cost to sell).
Recoverable amount of ships is based on market valuations. Ships have been assessed against market value on an annual basis using a
valuation technique of market comparable prices. The valuation as at 31 December 2021 was carried out by two independent firms
of valuators, Australian Independent Shipbrokers and GPA Maritime & Engineering Consultants Pty Ltd, who both hold a recognised
and relevant professional qualification and who have recent experience in valuation of assets of similar location and category. The
assessed average market value of ships is K114.7M (2020: 77.5M). If market price of ships had been 10% lower, recoverable amount
would be K97.5M (2020: K69.8M) resulting in a reduced impairment reversal of K1.4M (2020: an additional impairment charge of
K1.3M).
There are no other further conditions that indicate impairment of property, plant and equipment as at 31 December 2021 in other
businesses of the Group.
42 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
10. Property, plant and equipment (continued)
(c) Right-of-use assets
The recognised right-of-use assets relate to properties leased by the Group for its use (i.e. leased buildings). The movement of
right-of-use assets classified under property, plant and equipment is provided below:
As at 31 December 2021
Opening net book amount
Lease agreements made during the year
Disposal
Depreciation
Closing net book amount
At cost
Accumulated depreciation
As at 31 December 2020
Opening net book amount
IFRS 16 adjustment
Lease agreements made during the year
Depreciation
Closing net book amount
At cost
Accumulated depreciation
Properties
Total
PGK’000
PGK’000
44,439
530
(8,820)
(3,598)
32,551
41,733
(9,182)
32,551
45,316
(3,230)
5,441
(3,088)
44,439
50,023
(5,584)
44,439
44,439
530
(8,820)
(3,598)
32,551
41,733
(9,182)
32,551
45,316
(3,230)
5,441
(3,088)
44,439
50,023
(5,584)
44,439
11. Investment properties
Investment properties represent the Group’s residential and commercial properties that are available for external lease rather than
internal use. Properties used by the Group are shown in ‘Property’ within note 10.
Cost
Accumulated depreciation
Net book value
Opening value
Additions
Transfers (to) / from property, plant & equipment
Right of use of assets movement
Depreciation
Closing value
Consolidated
Parent Entity
2021
2020
2021
2020
561,809
(173,392)
388,417
394,338
10,515
-
106
(16,542)
388,417
593,181
(198,843)
394,338
360,282
16,078
34,144
85
(16,251)
394,338
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Steamships Annual Report 2021 43
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
11. Investment properties (continued)
(a) Right-of-use assets
The recognised right-of-use assets relate to state land leases related to properties owned by the Group (including investment
properties). The breakdown of right-of-use assets classified within investment properties is provided below:
As at 31 December 2021
Opening net book amount
Lease agreements made during the year
Terminated
Depreciation
Closing net book amount
At cost
Accumulated depreciation
As at 31 December 2020
Opening net book amount
IFRS 16 adjustment
Lease agreements made during the year
Terminated
Depreciation
Closing net book amount
At cost
Accumulated depreciation
State Land
Leases
25,987
107
-
(431)
25,663
26,923
(1,260)
25,663
25,902
(669)
1,167
(72)
(341)
25,987
26,816
(829)
25,987
Total
25,987
107
-
(431)
25,663
26,923
(1,260)
25,663
25,902
(669)
1,167
(72)
(341)
25,987
26,816
(829)
25,987
2021
2020
(b) Amounts recognised in profit/loss for investment properties
Rental income
Repairs and maintenance attributable to rental properties under non-cancellable leases
Operating expenses directly attributable to rental properties under non-cancellable leases
105,887
(2,970)
(10,431)
108,424
(3,897)
(11,475)
(c) Valuation basis
Properties include commercial and residential properties occupied by Group businesses together with commercial and residential
investment properties which are available for external lease. An analysis of the carrying amount and estimated range of fair values
for each category of property is shown below. Fair values have been estimated internally, based on market evidence of property
values, supported by independent professional valuations from previous years, adjusted by observable market trends related to PNG
residential and commercial properties, as well as land values, on an annual basis.
Investment properties
Other properties (note 10)
Total
NBV
Lower
Higher
Valuation Range
362,754
356,098
718,852
1,332,964
398,144
1,731,108
1,666,205
497,680
2,163,885
The management has utilised certain historical facts and available relevant market data in reaching their opinion as to the valuation
of the properties up to the date of valuation, including use of comparable sales and capitalisation rates.
(d) Non-current assets pledged as security
Refer to note 16 for information on non-current assets pledged as security by the Group.
44 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
11. Investment properties (continued)
(e) Contractual receivables
Minimum lease receivables under non-cancellable operating leases of investment properties not recognised in the financial statements
are receivable as follows:
Within one year
Later than one year but not later than five years
Later than five years
12. Intangible assets
Opening balance
Disposal of Subsidiary
Closing balance
Consolidated
Parent Entity
2021
2020
2021
2020
85,706
88,094
18,290
192,090
94,118
122,175
53,778
270,071
-
-
-
-
-
-
-
-
Consolidated
Parent Entity
2021
2020
2021
2020
76,433
-
76,433
76,433
-
76,433
-
-
-
-
-
-
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to operating segment. The goodwill balance of
K76.4M (2020: K76.4M) is attributable to various business acquisitions in the logistics segments including Pacific Towing (K67.4M) and
New Britain Shipping (K9M). The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations
use pre-tax cash flow projections based on financial budgets approved by management covering a three-year period. Growth beyond
year three for the purpose of the impairment testing is set at 3% for New Britain Shipping and 5% for Pacific Towing (2020: 5% for
New Britain Shipping and 8% for Pacific Towing). A discount rate of 12.0% per annum (2020: 12.5% per annum) has been used and
reflects specific risks relating to the operating segment. The recoverable amount of the Pacific Towing CGU and New Britain Shipping
CGU exceed their carrying amounts by K23.1M (2020: K64.2M) and K12.1M (2020: K13.2M), respectively. Management believes
that growth rate of revenue of 5% p.a. for Pacific Towing is appropriate, and approved three-year financial budgets are based on
conservative assumptions.
Management determined the budgeted gross margin based on past performance and its market expectations. If the revised growth
rate beyond three years had been 1% lower than management’s estimates the Group would need to reduce the carrying value of
goodwill of Pacific Towing by K6.9M and the carrying value goodwill of New Britain Shipping by KNil. The CGUs’ carrying amount
would exceed the value in use at a growth rate lower than 4.3% p.a. for Pacific Towing and negative growth rate of 0.7% p.a. for New
Britain Shipping.
The discount rates used reflect specific risks relating to the relevant CGUs. If the revised estimated discount rate applied to the
discounted cash flows of the Pacific Towing CGU and New Britain Shipping CGU had been 1% higher than management’s estimates,
the carrying value of goodwill of Pacific Towing and New Britain Shipping would exceed their carrying amounts by KNil and KNil. The
CGUs’ carrying amount would be equal to value in use at a discount rate of approximately 13.3% p.a. and 20.2% p.a. respectively.
13. Trade and other payables
Trade payables
Trade payables related parties (Note 18)
Accruals
Other payables
Consolidated
Parent Entity
2021
2020
2021
2020
23,503
272
51,330
16,699
91,804
18,697
468
40,772
1,752
61,689
-
-
-
-
-
-
-
-
-
-
All trade and other payables are due and payable within 12 months.
14. Lease Liabilities
As disclosed in Note 10 and 11, the right-of-use assets and related lease liabilities are recognised in relation to the following types
of assets: state land leases related to properties owned by the Group (including its investment properties) and properties (i.e.
buildings leased by the Group for its use).
Steamships Annual Report 2021 45
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
14. Lease Liabilities (continued)
State land leases
Properties
Total lease liabilities
2021
26,464
35,090
61,554
2020
26,553
46,537
73,090
Total lease liabilities as of 31 December 2021 include current liabilities of K2.1M (1 January 2021: K2.7M) and non-current liabilities
of K59.4M (1 January 2021: K70.4M).
Minimum lease payments:
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Total
Less: Unexpired finance charges
Present value of lease liabilities:
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Total
Interest on lease liabilities recognised in profit or loss by the Group amounts to PGK3.3M.
Movement in net lease liabilities as per below:
Opening
Lease agreements made during the year
Disposal during the year
Finance costs
Repayment
4,869
18,067
117,831
140,767
(79,213)
61,554
2,080
13,127
46,347
61,554
73,090
655
(9,371)
3,167
(5,987)
61,554
6,088
23,108
128,088
157,284
(84,194)
73,090
2,662
21,022
49,406
73,090
72,236
2,627
-
3,946
(5,719)
73,090
The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 31 December 2020 and 31 December
2021 was 4.5% p.a. Management assessed that the weighted average interest rate on borrowings obtained from financial institutions
during 2021 and previous years approximates the incremental borrowing rate at the date of initial adoption of IFRS 16 and at 31
December 2021. For related management judgments refer to Note 1(z).
The Group recognised expenses relating to short-term leases and expenses relating to leases of low-value assets that are not short-
term leases of K7.5M and K9.8M for the year ended 31 December 2021 (K10.4M & K5.5M – 2020), respectively. These expenses are
included in operating expenses.
The Group’s leases have no variable payments.
15. Provisions for other liabilities and charges
Opening value
Charged to profit and loss
Utilised during year
Closing value
Current
Non-current
Employee
16,020
8,443
(9,306)
15,157
5,229
9,928
15,157
Insurance
Claims
2021
Total
49,315
-
(6,305)
43,010
43,010
-
43,010
65,335
8,443
(15,611)
58,167
48,239
9,928
58,167
2020
Total
62,779
10,690
(8,134)
65,335
55,398
9,937
65,335
A description of employee provisions is disclosed in note 1(p). Provision for insurance claims mostly relates to provision for a
disputed insurance claim, as criteria for recognition of provision were met. Refer to Note 1(p).
46 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
16. Borrowings
Current:
Bank overdrafts (secured)
Bank loans
Other loans (unsecured)
Non-current:
Bank loans (secured)
Total Borrowings
Consolidated
Parent Entity
2021
2020
2021
2020
2,534
51,084
160
53,778
209,500
209,500
263,278
2,506
102,500
160
105,166
199,500
199,500
304,666
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Mortgages over certain of the Group’s properties and a registered equitable charge over the remainder of the Group’s assets,
undertakings and uncalled capital are held by the Group’s bankers as security for the bank overdrafts and secured loans.
Interest is paid on all loans at commercial rates at a discount to Indicator Lending Rates. The effective interest rate on bank facilities
at the balance sheet date was 4.13% (2020: 3.9%). Bank overdrafts are interest-only with no agreed repayment schedule. Bank loans
are secured loans with varying 1 to 3 year terms. The effective interest rate on other loans is 2% (2020: 2%).
The fair value of borrowings approximates their carrying amounts. Borrowing terms, margins and credit risk factors approximate
currently obtainable levels for similar facilities.
17. Issued capital
Consolidated
Parent Entity
2021
2020
2021
2020
(a) Issued and paid up capital
Ordinary shares
24,200
24,200
24,200
24,200
(b) Number of shares
Number of shares (000’s)
Ordinary shares
31,008
31,008
31,008
31,008
In accordance with the Papua New Guinea Companies Act 1997 the shares have no par value.
The Company’s securities consist of ordinary shares which have equal participation and voting rights.
(c) Dividends
The Directors advise that a dividend of 65 toea per share will be paid immediately after the Annual General Meeting on 17th June
2022. Dividends payable to shareholders resident outside of Papua New Guinea will be converted to Australian Dollars at the
prevailing rate which the Company is able to secure. During the year the Company paid dividends totalling 115 toea per share which
relate to the final dividend of 2020 at 80t per share amounting to K24.8 million, and interim dividend for the 2021 financial year of
K10.9 million at 35t per share.
Steamships Annual Report 2021 47
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
18. Related party disclosures
(a) Loss of control:
In September 2021 Steamships sold its wholly-owned subsidiary Croesus Holdings Ltd, and indirect wholly-owned subsidiary,
Croesus Re PCC Ltd, both incorporated in the Isle of Man, to its ultimate parent company, John Swire & Sons Ltd. at the net
book value of the two entities. The value of the transaction represents less than 5% of the equity interests of Steamships, as
reported in the last set of accounts submitted to the ASX, being 30th June 2021 (total equity of PGK 969,934,000 equivalent
to approximately USD276,000,000).
(b) Interest in subsidiaries, associates and joint ventures:
These are set out in notes 21, 22 and 23 respectively.
(c) Remuneration:
Income received or due and receivable both by Directors and general managers in connection with the management of the
Group companies is shown in the Directors’ Report.
Consolidated
Parent Entity
2021
2020
2021
2020
Key management personnel disclosure
Wages and salaries
Other short-term benefits
13,112
958
12,567
1,298
159
10
88
-
-
-
2
-
-
-
59
-
-
-
186
154
8,171
136
1
(1,384)
-
9,952
-
-
-
-
11
-
(d) Material transactions:
Sales of goods and services
- Associates and joint ventures
- Key management
- Associated groups
- Other shareholders
Lease and rental income
- Associates and joint ventures
- Other shareholders
Management fee received
- Associates and joint venture
- Associated groups
Container and charter hire
- Associates and joint venture
- Shareholders and associated companies
Purchase of goods and services
- Associates and joint ventures
- Associated groups
- Key Management
Purchase of assets
- Associated groups
48 Steamships Annual Report 2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
18. Related party disclosures (continued)
Lease rental expense
- Associates & Joint ventures
- Associated groups
Finance Cost
- Associates & joint ventures
Dividends paid
- Other shareholders (minority interest)
- Controlling shareholder
- Significant shareholder
Loans to/(from) related companies
- Other shareholders
Consolidated
Parent Entity
2021
2020
2021
2020
330
-
-
344
471
-
-
-
-
-
-
-
(1,804)
(25,717)
(9,942)
(946)
(12,300)
(4,755)
-
(25,717)
(9,811)
-
(12,300)
(4,755)
-
(160)
All transactions with related parties are made on normal commercial terms and conditions.
Balances with related companies:
Associates and joint ventures:
Stevedoring associates (note 9)
Basiloc Limited (note 16)
Due from related Companies:
Colgate Palmolive Limited (note 9)
Harbourside Development Limited (note 9)
Subsidiary Companies (note 9)
Pacific Rumana Limited (note 9)
Huhu Rural LLG (note 9)
Viva No. 31 Limited (note 9)
Wonye Limited (note 9)
Wakang Inc. (note 9)
John Swire & Sons Limited (note 9)
Croesus Re PCC Limited (note 9)
Total trade receivables from related companies (note 9)
Balances receivable / (payable) from / to related companies:
Receivables
Pacific Rumana Limited (note 7)
Harbourside Development Limited (note 7)
Wonye Limited (note 7)
Makerio Stevedoring Limited (note 7)
Nikana Stevedoring Ltd (note 7)
Colgate Palmolive (PNG) Limited (note 7)
Swire Shipping (note 7)
John Swire & Sons Limited (note 7)
Total trade receivables from related companies (note 7)
Payables
Makerio Stevedoring Limited (note 13)
Nikana Stevedoring Ltd (note 13)
Swire Shipping (note 13)
Croesus Limited (note 13)
Total trade payables to related companies (note 13)
(2,787)
(160)
(4,864)
(160)
500
123,333
-
28,930
955
2,000
2,851
16
8,899
198
167,682
-
-
-
-
-
-
-
36,494
36,494
-
-
-
(272)
(272)
500
68,529
-
28,930
1,054
2,000
2,802
-
2,641
-
106,456
514
938
5
14
18
10
2,540
-
4,039
(141)
(60)
(267)
-
(468)
-
-
-
500
-
-
-
-
-
-
-
8,899
-
9,399
-
-
-
-
-
-
-
36,494
36,494
-
-
-
-
-
-
-
-
500
-
-
-
-
-
-
-
-
-
500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Steamships Annual Report 2021 49
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
19. Reconciliation of cash flows
(a) Cash generated from operations
Profit for the year after tax
Depreciation and impairment
Dividend and interest income
Net gain on sale of fixed assets
Share of profit of associates and joint ventures
Refund of SWT assessment
Gain on disposal of a subsidiary
Change in operating assets and liabilities
(Increase)/decrease in trade debtors and other receivables
(Increase)/decrease in inventory
(Increase)/decrease in deferred tax asset
(Increase)/decrease in other operating assets
(Increase)/decrease in trade creditors and other payables
Increase/(decrease) in other operating liabilities
Decrease in income tax receivable
Increase/(decrease) in deferred tax liability
Net cash inflow from operating activities
(b) Net loan reconciliation
Consolidated
Parent Entity
2021
2020
2021
2020
91,616
93,774
-
(2,063)
(5,062)
-
-
(14,854)
(5,727)
(1,561)
-
30,115
(3,000)
296
3,727
187,261
79,037
88,328
-
(9,278)
(4,026)
(12,699)
44,224
2,088
(7,323)
-
-
-
-
(36,494)
22,550
(3,931)
1,301
(6,187)
(13,718)
1,442
10,781
(4,123)
149,477
-
-
(149)
1,953
-
-
261
-
4,560
10,116
2,048
(9,443)
-
-
-
-
-
-
-
(2,002)
-
(23)
104
-
800
Lease
liabilities
Bank
Loans
Other
Loans
Total
Net debt as at 31 December 2019
(72,236)
(302,000)
(15,822)
(390,058)
Repayments
Lease agreements made during the year
Finance costs
Payment of lease liabilities
-
(2,627)
(3,946)
5,719
-
-
-
-
Net debt as at 31 December 2020
(73,090)
(302,000)
Repayments
Lease agreements made during the year
Disposal during the year
Finance costs
Payment of lease liabilities
-
(655)
9,371
(3,167)
5,987
42,523
-
-
(1,107)
-
10,798
-
-
-
(5,024)
2,077
-
-
-
-
10,798
(2,627)
(3,946)
5,719
(380,114)
44,600
(655)
9,371
(4,274)
5,987
Net debt as at 31 December 2021
(61,554)
(260,584)
(2,947)
(325,085)
20. Retirement benefit plans
The total cost of retirement benefits of the Group in 2021 was K5.1M (2020: K3.9M). The Group participates in the National
Superannuation Fund of Papua New Guinea, a multi-employer defined contribution fund, on behalf of all citizen employees with
minimum employer and employee contribution rates established by legislation.
The parent entity does not employ staff directly; consequently, there was no charge during the year.
50 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
21. Subsidiaries and transactions with non-controlling interests
Significant investments in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with
the accounting policy described in Note 1 (c):
Equity Holdings(1) Equity Holdings(1)
Name of Entity
Country of Incorporation
Class of Shares
2021
2020
Consort Express Lines Limited(6)
Croesus Limited
Kavieng Port Services Limited
Kiunga Stevedoring Company Limited
Lae Port Services Limited(5)
Madang Port Services Limited
Morobe Terminals Limited(4)
Motukea United Limited
New Britain Shipping Limited(2)
Oro Port Services Limited
Pacific Towing (PNG) Limited(7)
Palm Stevedoring & Transport Limited
Port Services PNG Limited(5)
Steamships Limited
United Stevedoring Limited(3)
Windward Apartments Limited
Croesus Holdings Limited(8)
Croesus Re PCC Limited(8)
Pacific Towing SI Limited
Sandaun Agency & Stevedoring Limited(9)
Gazelle Port Services Limited(10)
Wonye No. 2 Limited(11)
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Papua New Guinea
Isle of Man
Isle of Man
Solomon Islands
Papua New Guinea
Papua New Guinea
Papua New Guinea
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
-
100
60
100
51
60
50.5
64.1
50
100
-
66.7
54
100
70
100
-
-
100
-
100
100
-
100
60
100
51
60
50.5
64.1
50
100
-
66.7
54
100
100
100
100
100
100
-
-
-
(1) The portion of ownership is equal to the proportion of voting power held.
(2)
Consolidated by virtue of control over the operating decisions and returns. As at 31 December 2021, Steamships Trading
Company Limited still has control over this entity.
(3) United Stevedoring Limited became subsidiary in May 2019.
(4) Morobe Terminals Limited became subsidiary in May 2019 and is in liquidation.
(5) Lae Port Services and Port Services Limited are in liquidation.
(6)
(7)
(8)
(9)
As disclosed in Note 24, Steamships Trading Company Limited acquired the minority shareholding (29.76%) of Consort Express
Lines Limited in May 2019 to increase its shareholding to a fully owned subsidiary. In March 2020, The Investment Promotion
Authority approved the application to amalgamate Consort Express Lines Limited into Steamships Limited. The amalgamation is
effective as at 31 December 2020.
As disclosed in Note 24, the Registrar of Companies approved the amalgamation of Pacific Towing (PNG) Limited with
Steamships Ltd on 7 April 2021. The effective date of amalgamation is 31 December 2020.
As disclosed in Note 18, Steamships sold its wholly-owned subsidiary Croesus Holdings Ltd, and indirect wholly-owned subsidiary,
Croesus Re PCC Ltd, both incorporated in the Isle of Man, to its ultimate parent company, John Swire & Sons Ltd. in September 2021.
Incorporated since 9 March 2012 and is 100% owned by Steamships Limited. This Company is operating as an agency of
Consort. JV Port Services will assume control of the management in 2022 with its 3-year Stevedoring license validity.
(10) Incorporated on 21 July 2021 and is domiciled in Rabaul. The company is still under start-up phase.
(11) Incorporated on 8 October 2021
Shares in subsidiary companies have been stated at cost or fair value on acquisition less dividends received from pre-acquisition
profits.
Steamships Annual Report 2021 51
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
21. Subsidiaries and transactions with non-controlling interests (continued)
The summarized financial information of the Group’s largest subsidiaries with non-controlling interest as at 31 December 2021 and 31
December 2020 is as follows:
2021
Madang Port Services Limited
New Britain Shipping Limited
Motukea United Limited
Kavieng Port Services Limited
United Stevedoring Limited
2020
Madang Port Services Limited
New Britain Shipping Limited
Motukea United Limited
Kavieng Port Services Limited
Ownership
Interest %
Assets
Liabilities
60
50
64.1
60
70
60
50
64.1
60
5,439
19,456
2,906
3,989
2,908
6,047
25,759
3,576
4,368
(508)
(1,690)
(1,050)
(919)
(2,398)
(1,295)
(7,204)
(1,192)
(1,051)
Carrying
Value
4,931
17,766
1,856
3,070
510
4,752
18,555
2,384
3,317
Revenue
Profit
4,764
12,017
7,674
4,787
15,898
5,699
10,855
7,566
3,925
274
1,602
15
338
440
190
1,807
146
433
22. Investment in associates
(a) Movement in carrying amounts
Opening value
Share of profits before tax
Income tax expense
Change in control of associate companies to subsidiaries
Dividends received
Closing value
Consolidated
Parent Entity
2021
2020
2021
2020
5,529
285
(86)
-
(187)
5,541
11,373
394
(118)
-
(6,120)
5,529
-
-
-
-
-
-
-
-
-
-
-
-
The equity method is used to account for all interests in associates on a consolidated basis.
(b) Summarised financial information of equity accounted associates.
The Group’s share of the results of its principal associates and its aggregated assets (including goodwill) and liabilities are as follows:
2021
Ownership
Interest %
Assets
Liabilities
Makerio Stevedoring Limited
Nikana Stevedoring Ltd
Riback Stevedores Ltd
45
45
49
1,499
1,841
2,501
5,841
161
139
-
300
Carrying
Value
1,338
1,702
2,501
5,541
840
781
-
1,621
Revenue
Profit
2020
Ownership
Interest %
Assets
Liabilities
Carrying
Value
Revenue
Makerio Stevedoring Limited
Nikana Stevedoring Ltd
Riback Stevedores Ltd
45
45
49
1,351
1,723
2,514
5,588
(17)
63
13
59
1,368
1,660
2,501
5,529
791
597
-
1,388
The associates provide stevedoring services to various external and Group shipping entities.
All associated companies are incorporated and operate in Papua New Guinea.
There are no contingent liabilities relating to the Group’s interest in the associates.
52 Steamships Annual Report 2021
183
138
(122)
199
Profit
/(loss)
113
185
(22)
276
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
23. Investment in joint ventures
(a) Movement in carrying amounts
Opening value
Share of profits before tax
Income tax expense
Elimination of gain on sale of land to associate company
Dividends received
Closing value
2021
2020
31,463
6,947
30,213
5,357
(2,084)
(1,607)
-
(2,500)
33,826
-
(2,500)
31,463
The interest in joint ventures is accounted for in the financial statements using the equity method of accounting.
(b) Information relating to the joint ventures is set out below.
2021
Colgate Palmolive (PNG) Limited
Harbourside Development Limited
Pacific Rumana Limited
Viva No. 31 Limited
Wonye Limited
2020
Colgate Palmolive (PNG) Limited
Harbourside Development Limited
Pacific Rumana Limited
Viva No. 31 Limited
Wonye Limited
Ownership
Interest
%
50
50
50
50
50
Ownership
Interest
%
50
50
50
50
50
Assets
Liabilities
Carrying
Value
Revenue
Profit
/Loss
24,133
10,177
13,956
159,022
159,380
3,663
10,490
28,559
87
7,062
15,335
225,867
192,041
Assets
Liabilities
(358)
3,576
3,428
13,224
33,826
Carrying
Value
36,236
10,705
2,180
862
3,258
4,351
218
254
(187)
227
53,241
4,863
Revenue
Profit
22,725
10,687
12,038
44,363
3,867
115,969
116,147
3,171
10,756
26,092
(174)
7,198
13,392
178,713
147,250
(178)
3,345
3,558
12,700
31,463
9,884
1,731
881
2,588
(178)
(15)
(171)
247
59,447
3,750
The Group’s share of the capital commitments of joint ventures at 31 December 2021 is K79.3M (2020: K103.2M).
There are no contingent liabilities arising from the Group’s interests in the joint ventures.
Steamships Annual Report 2021 53
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
24. Business Combinations and Transactions with Non-Controlling Interests
On 18 March 2020, the Investment Promotion Authority approved the application to amalgamate Consort Express Lines Limited
and Consort Investments Limited into Steamships Limited effective as at 31 December 2019 using the short-form amalgamation
process under section 235 of the Companies Act 1997. The name of the amalgamated company is Steamships Limited. Under the
amalgamation, Steamships Limited took control of all the assets of Consort Express Lines Limited and Consort Investments Limited
and assumed the responsibility for their liabilities.
On 7 April 2021, the Registrar of Companies approved the amalgamation of Pacific Towing (PNG) Limited with Steamships Ltd.
The effective date of amalgamation is 31 December 2020. Pacific Towing (PNG) Limited was amalgamated into the Company using
the short-form amalgamation process under section 235 of the Companies Act 1997. The name of the amalgamated company is
Steamships Ltd. Under the amalgamation, the Company took control of all the assets of Pacific Towing (PNG) Limited and assumed
the responsibility for their liabilities.
The amalgamations were accounted for based on predecessor accounting with book value accounting used for the purposes of
the transaction. Amalgamation had no impact on the Group’s assets, liabilities, equity, and profit or loss account, as amalgamated
entities have been fully controlled by the Group and consolidated prior to the amalgamation and after the amalgamation. Further,
amalgamation had no impact on the Group’s cash flows.
25. Discontinuing Activities
On 28th September 2021, the Group disposed of its 100% interest in Croesus Holdings Ltd, and its indirect wholly owned subsidiary,
Croesus Re PCC Limited. The 31st December 2021 results (K’000) from the discontinued activities are derived from:
(a) Profit for the period:
Revenue
Other operating income / (expenses) - net
Profit before tax
Profit after tax
(b) An analysis of the cash flows of discontinued operations is as follows:
Operating cash flows
Investing cash flows
Financing cash flows
Net cash flows
Opening balance
Cash disposed on sale of Croesus Re and Croesus Holdings Ltd
Closing cash flow balance
(c) Details of the sale of subsidiary are as follows:
Total disposal consideration receivable (Note 18)
Carrying amount of net assets sold
Gain on sale before income tax
Gain on sale after income tax
The parent company has recognised gain of K36.5M on the sale of subsidiary in 2021 (Note 3).
2020
1,079
(234)
845
845
2021
746
4,134
4,880
4,880
2021
(7,340)
5,406
-
(1,934)
45,990
44,056
-
2021
2020
36,494
36,494
-
-
-
-
-
-
54 Steamships Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
25. Discontinuing Activities (continued)
(d) Assets and liabilities of disposed subsidiary on the transaction date are presented below:
Cash and cash equivalents
Prepayments and other receivables
Total assets
Accounts payable and accruals
Insurance reserves
Borrowings
Total liabilities
Net assets
2021
44,056
5,152
49,208
189
3,395
9,130
12,714
36,494
(e) Restatement of previous year (2020) figures
The 2020 comparative results have been restated to present the results of Croesus Holdings Ltd and Croesus Re PCC
Limited as discontinued operations.
Statement of comprehensive income – including discontinued operations:
31st December
2020
Discontinued
Operations
31st December
2020 (Restated)
506,144
(433,341)
72,803
7,416
(16,406)
4,026
67,839
11,198
79,037
(1,079)
540
(539)
(306)
-
-
(845)
-
(845)
505,065
(432,801)
72,264
7,110
(16,406)
4,026
66,994
11,198
78,192
Revenue (after reclassifications)
Operating expenses (after reclassifications)
Operating profit
Finance income
Finance costs
Share of profit of associates and joint ventures
Profit before income tax
Income tax expense
Profit from continuing operations
26. Segmental reporting
(a) Description of segments
The Board monitors the business from a product perspective and has identified three reportable segments. A brief description of
each segment is outlined below:
•
Property and Hospitality – consist of the hotels owned and operated by the Group and also its property leasing division. The
assets are stated at historical cost net of accumulated depreciation and include new assets in the course of construction.
•
Logistics – consists of shipping and land-based freight transport and related services divisions.
• Commercial and investment – consists of commercial, head office administration function and insurance activities.
Steamships Annual Report 2021 55
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
26. Segmental reporting (continued)
(b) Segment information
The segment information provided to the Board for the reportable segments for the year ended 31 December 2021 is as follows:
2021
External revenue
- from continuing operations
- from discontinued operations
Interest revenue
Interest expense
Segment results
Share of joint ventures and associates profit
Total tax (expense) / benefit
Profit from continuing operations
Profit from discontinued operations
Segment assets
Segment liabilities
Net assets
Total assets include investment in joint ventures and associates
Capital expenditure
Depreciation
2020
External revenue
- from continuing operations
- from discontinued operations
Interest revenue
Interest expense
Segment results
Share of joint ventures and associates profit
Total tax (expense) / benefit
Profit from continuing operations
Profit from discontinued operations
Segment assets
Segment liabilities
Net assets
Total assets include investment in joint ventures and associates
Capital expenditure
Depreciation
56 Steamships Annual Report 2021
Hotels and
Property
Logistics
Commercial and
Investments
(and eliminations)
Total
240,286
321,168
-
494
(2,276)
81,739
-
(14,433)
67,306
-
-
371
(5,010)
23,520
-
(5,633)
17,887
-
2,475
746
8,952
(6,549)
(21,891)
5,062
18,372
1,543
4,880
563,929
746
9,817
(13,835)
83,368
5,062
(1,694)
86,736
4,880
697,144
351,345
468,500
1,516,989
(101,584)
(173,189)
(221,287)
(496,060)
595,560
178,156
247,213
1,020,929
19,870
41,419
45,908
5,541
47,672
43,193
13,956
652
4,673
39,367
89,743
93,774
197,520
304,886
-
378
(8,636)
53,697
(116)
(15,537)
38,044
-
-
716
(2,718)
14,750
276
(6,233)
8,793
-
2,659
1,079
6,016
(5,052)
(5,479)
3,866
32,968
31,355
845
505,065
1,079
7,110
(16,406)
62,968
4,026
11,198
78,192
845
740,382
324,848
422,983
1,488,213
(242,585)
(148,902)
(132,900)
(524,387)
497,797
175,946
290,083
963,826
19,425
30,325
45,217
5,529
35,842
40,023
12,038
549
3,088
36,992
66,716
88,328
NOTES TO THE FINANCIAL STATEMENTS
Steamships Trading Company Limited Year Ended 31 December 2021 (Amounts in Kina 000’s unless otherwise stated)
26. Segmental reporting (continued)
These figures include non-controlling interests share of operating profits and assets.
Revenue from the property and hospitality business mostly relates to the provision of services and is recognised over time.
A minor portion represents revenue from the sale of goods and is recognised at a point in time. Similarly, revenue from the logistics
business mostly relates to the provision of services and is recognised over time. Revenue from the commercial segment relates to
sale of goods and is recognised at a point in time.
(c) Geography
The Group operates almost wholly in Papua New Guinea. It is not practical to provide a segment analysis by geographical region
within Papua New Guinea. The Group has two insignificant business operations in the Solomon Islands and Isle of Man. The business
operations in Isle of Man were disposed of during 2021.
27. Contingent assets and liabilities
(a) Contingent Assets
During 2017 the Company received a salaries and wages tax default assessment of K15.2M, including penalties and interest, from
the Internal Revenue Commission of PNG (“IRC”) for the periods from 2006 to 2016. The Company recognised related expenses
in the 2017 financial statements. During 2017, the Company paid the assessment, and lodged the appropriate objections as required
by the IRC. The company successfully pursued recovery of K12.6M during the 2020 financial year and which was recognised in the
2020 financial year statement of comprehensive income as a salaries and wages tax recoverable.
(b) Contingent Liabilities
There were contingent liabilities at the Balance Sheet date as follows:
(a) The parent entity has given a secured guarantee in respect of the bank overdrafts and loans of certain subsidiaries.
(b) The parent entity has given letters of continuing financial support in respect of certain subsidiaries, associates and joint
ventures
No losses are anticipated in respect of these guarantees.
28. Commitments
(a) Capital commitments
Contracts outstanding for capital expenditure:
- less than 12 months
- 1-5 years
Consolidated
Parent Entity
2021
2020
2021
2020
9,842
-
9,842
6,079
-
6,079
-
-
-
-
-
-
29. Subsequent events
The Directors advised that a dividend of 65 toea per share will be paid immediately after the Annual General Meeting on 17th
June 2022. Dividends payable to shareholders resident outside of Papua New Guinea will be converted to Australian Dollars at the
prevailing rate which the Company is able to secure.
Steamships Annual Report 2021 57
INDEPENDENT AUDITOR’S REPORT
to the Shareholders of Steamships Trading Company Limited
Report on the audit of the financial statements of the Company and the Group
Our opinion
We have audited the financial statements of Steamships Trading Company Limited (the Company), which comprise the
statements of financial position as at 31 December 2021, and the statements of comprehensive income, statements of changes
in equity and statements of cash flows for the year then ended, and the notes to the financial statements which include a
summary of significant accounting policies and other explanatory information for both the Company and the Group. The
Group comprises the Company and the entities it controlled at 31 December 2021 or from time to time during the financial
year.
In our opinion, the accompanying financial statements:
•
•
comply with International Financial Reporting Standards and other generally accepted accounting practice in Papua New
Guinea; and
give a true and fair view of the financial position of the Company and the Group as at 31 December 2021, and their
financial performance and cash flows for the year then ended.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics
for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
Our firm carries out other services for the Group in the areas of taxation and other non-audit services. The provision of these
other services has not impaired our independence as auditor of the Company and the Group.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial
statements as a whole, taking into account the management structure of the Company and the Group, their accounting
processes and controls and the industries in which they operate.
PricewaterhouseCoopers, PwC Haus, Level 6, Harbour City, Konedobu, PO Box 484
Port Moresby, Papua New Guinea
T: +675 321 1500 / +675 305 3100, www.pwc.com/pg
58 Steamships Annual Report 2021
INDEPENDENT AUDITOR’S REPORT
to the Shareholders of Steamships Trading Company Limited
Materiality
Audit scope
Key audit matters
•
Amongst other relevant topics,
we communicated the following
key audit matter to the Audit
and Risk Committee:
- Goodwill impairment
assessment
•
This matter is further described
in the Key audit matter section
of our report.
•
•
•
•
For the purpose of our
audit of the Group we used
overall group materiality of
approximately 5% of the
Group’s profit before tax for the
year ended 31 December 2021.
We applied this threshold,
together with qualitative
considerations, to determine
the scope of our audit and
the nature, timing and extent
of our audit procedures
and to evaluate the effect of
misstatements on the financial
statements as a whole.
We chose Group profit before
tax because, in our view, it is
the metric against which the
performance of the Group is
most commonly measured
and is a generally accepted
benchmark.
We selected 5% based on our
professional judgement noting
that it is also within the range of
commonly acceptable related
thresholds.
•
•
•
•
We (PwC Papua New Guinea)
conducted audit work over the
Group’s significant operations
including the significant
subsidiaries included in the
Group consolidation sufficient
to express an opinion on the
financial statements as a whole.
All subsidiaries of the Group at
the year end are incorporated
and operating in Papua New
Guinea with the exception
of one subsidiary which has
operations in the Solomon
Islands.
All significant associates of the
Group are incorporated and
operating in Papua New Guinea
and audited by PwC Papua New
Guinea.
Our audit focused on where
the directors made subjective
judgements; for example,
significant accounting estimates
involving assumptions and
inherently uncertain future
events.
Steamships Annual Report 2021 59
INDEPENDENT AUDITOR’S REPORT
to the Shareholders of Steamships Trading Company Limited
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements for the current period. The key audit matters were addressed in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be a key matter to be communicated in our report. Further, commentary
on the outcomes of the particular audit procedures is made in that context.
Key audit matter
How our audit addressed the key matter
Goodwill impairment assessment
(Refer to note 12 of the financial statements)
The Group has goodwill totalling K76.4 million at
31 December 2021. In accordance with the accounting
policy in note 1(n) of the financial statements,
the Group has assessed the goodwill balance for
impairment at 31 December 2021.
The prolonged weakness in economic conditions in
a number of the markets in which the Group operates
in Papua New Guinea has increased the risk that the
carrying values of the components of goodwill may
be impaired.
The Group has calculated the value of the respective
cash generating units which the goodwill relates to
based on financial models comprising cash flow
projections. The cash flow projections use a number
of forward looking assumptions, including revenue
and cost growth, and the value calculation is sensitive
to these.
The value in use calculations incorporate judgements
regarding the impact of COVID 19 on forward looking
information.
We considered this a key audit matter because of the
significant judgements around future revenues and
costs, and the discount rate to be applied in
determining the values of the cash generating units.
We have considered and tested the financial models
used by the Group to determine the values of the
cash generating units. We compared the models with
the previous year’s models and found them to be
consistently structured and consistent with the basis of
preparation required by accounting standards. Together
with our valuation expert we reviewed the financial
model methodology used in determining the value of
the respective cash generating units.
We compared the forecast revenues and expenditures in
the financial models to approved budgets and obtained
an understanding of the Group’s budgeting procedures
upon which forecasts are based. We also evaluated the
reliability of estimates made by comparing forecasts
made in prior years to actual outcomes.
We benchmarked the assumptions used around
revenue and cost inflation with external forecasts, and
the discount rates with our expectation based on the
overall Weighted Average Cost of Capital (WACC) of the
Group. Together with our valuation expert we reviewed
the methodology used in determining the discount rate
applied in the financial models.
We performed sensitivity analysis on assumptions to
ascertain the extent of change that would be required in
key assumptions for the respective goodwill balances to
be impaired. We determined that the calculations were
more sensitive to inflation assumptions and discount
rates and focused our testing on these assumptions.
60 Steamships Annual Report 2021
INDEPENDENT AUDITOR’S REPORT
to the Shareholders of Steamships Trading Company Limited
Information other than the financial statements and auditor’s report
The directors are responsible for the annual report which includes other information. Our opinion on the financial statements
does not cover the other information included in the annual report and we do not express any form of assurance conclusion
on the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial statements
The directors are responsible, on behalf of the company for the preparation of financial statements that give a true and fair view
in accordance with International Financial Reporting Standards and other generally accepted accounting practice in Papua
New Guinea and the Companies Act 1997 and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud
or error .
In preparing the financial statements, the directors are responsible for assessing the ability of the Group to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of the financial statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
•
•
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
Steamships Annual Report 2021 61
INDEPENDENT AUDITOR’S REPORT
to the Shareholders of Steamships Trading Company Limited
Auditor’s responsibilities for the audit of the financial statements (continued)
•
•
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the financial statements. We are responsible for the direction, supervision and
performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements for the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulations preclude public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
62 Steamships Annual Report 2021
INDEPENDENT AUDITOR’S REPORT
to the Shareholders of Steamships Trading Company Limited
Report on other legal and regulatory requirements
The Companies Act 1997 requires that in carrying out our audit we consider and report on the following matters. We confirm
in relation to our audit of the financial statements for the year ended 31 December 2021:
• We have obtained all the information and explanations that we have required;
•
In our opinion, proper accounting records have been kept by the Company as far as appears from an examination of those
records.
Who we report to
This report is made solely to the Company’s shareholders, as a body, in accordance with the Companies Act 1997. Our audit
work has been undertaken so that we might state to the Company’s shareholders those matters which we are required to state
to them in an auditor’s report and for no other purpose. We do not accept or assume responsibility to anyone other than the
Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinions we have formed.
PricewaterhouseCoopers
Jonathan Grasso
Partner
Registered under the Accountants Act 1996
Port Moresby
31 March 2022
Steamships Annual Report 2021 63
DIRECTORS’ REPORT
Steamships Trading Company Limited Year ended 31 December 2021
Steamships Trading Company Limited and Subsidiary Companies
The Directors submit their Annual Report for the year ended 31 December 2021 for the Company and its subsidiaries.
Principal Activities and Review of Operations
Full details of the Group’s activities are given in the Directors’ Review on page 8. The Group continues to operate in the
segments of Hotels and Property, Logistics and Commercial & Investments.
The Directors believe that there will be no significant changes in the Group’s activities for the foreseeable future.
Changes in Accounting Policies
There are no changes in Accounting Policies in the year.
Result
The Group operating profit for the year attributable to shareholders was K90,550,000 (2020: K78,855,000).
Dividend
The Directors advise that a dividend of 65 toea per share will be paid after the Annual General Meeting on 17th June 2022.
Dividends payable to shareholders resident outside of Papua New Guinea will be converted to Australian Dollars at the
prevailing rate which the Company is able to secure.
Rounding Off
Amounts in the Directors’ Report and accounts have been rounded off to the nearest thousand Kina.
64 Steamships Annual Report 2021
DIRECTORS’ REPORT
Steamships Trading Company Limited Year ended 31 December 2021
Experience & Interests Register
Directors serving at the date of this report have disclosed the following experience and interests in shares in the Company and
provided general disclosure of companies in which the Director is to be regarded as interested as set out below:
G.L. Cundle
Chairman since 2015
Managing Director 2013 to 2015
Member of the Remuneration and Nomination Committee
Member of the Strategic Planning Committee Director since 2013
Mr Cundle joined the Swire Group in 1979 and has extensive corporate experience having worked with the Group in various
divisions in Hong Kong, Australia, Korea, Japan, and Papua New Guinea. He was a Non-Executive Director of Steamships
in 2006-2007 and General Manager of Steamships Shipping from 1989-1992. He was the Managing Director of Steamships
Trading Company Limited from 1st January 2013 to 12th January 2015. He is Chairman and Chief Executive Officer of John
Swire and Sons (Australia) Pty Limited.
P. J. Aitsi MBE
Director from 1st July 2021
Director 2014 to 2018
Peter was formerly Group CEO of Credit Corporation PNG Ltd; he has a long-standing involvement with anti-corruption
organisation Transparency International PNG (TIPNG) and is the current chair. He is chair of media organisation PNGFM Ltd
and has recently been appointed as a director with MiBank (PNG Micro-Bank), he currently serves as a member of a panel
appointed by the PNG Treasury Department and Bank of PNG reviewing the Superannuation and Life Insurance Act. Peter and
wife Teresa operate their family business Tricky Worx providing landscaping and property services to select clients.
His role with TIPNG is voluntary, as is his role on the Catholic Bishop Conference Finance Committee and the St Joseph’s
Parish Finance Committee.
R.P.N. Bray
Managing Director from 20th September 2020
Member of the Strategic Planning Committee
Member of the Remuneration and Nomination Committee
Director since 2018
Appointed Chief Operating Officer on 27th August 2018, Mr Bray was previously Marine Services Director of Singapore based
Swire Pacific Offshore Pte Ltd. He was responsible for Swire Pacific Offshore’s subsea, renewables, logistics, seismic, salvage
and oil spill divisions. He was formally Chief Operating Officer of Swire Oilfield Services and held various senior operational
and commercial positions in Cathay Pacific Airways Ltd in his earlier career. He holds directorship of various Steamships
Trading Company subsidiaries, joint ventures, and associated companies. He sits on a number of charitable advisory boards
and a number of PNG business groupings, including the PNG Property Developers Association and the Business Council’s
Energy Working Group. He graduated with a Bachelor of Science from Bristol University (UK) and holds a Master of Marine
Sciences from Nanyang Technical University (Singapore).
Steamships Annual Report 2021 65
DIRECTORS’ REPORT
Steamships Trading Company Limited Year ended 31 December 2021
L.M. Bromley
Chairperson of the Audit and Risk Committee since July 2021
Member of the Strategic Planning Committee since July 2021
Member of the Remuneration and Nomination Committee since July 2021
Director since 2019
Ms Bromley has been a Senior Executive of the Bromley Group of Companies for over 12 years. She is currently a Director
of the Bromley Group’s various commercial operating Companies some of which include Heli Niugini Ltd, Maps Tuna Ltd,
Hoia Investments Ltd and Western Drilling Ltd in Papua New Guinea, PT Sayap Garuda Indah and PT Air Bali in Indonesia,
Allway Logistics Limited and Merit Logistic Services Limited in Hong Kong and Aerolift (Singapore) Pte. Ltd. in Singapore and
is responsible for the aviation operation, logistic support and group investment functions.
She is the Managing Director of Merit Finance Limited which serves as the Bromley Group’s treasury arm. Louise also consults
on the Bromley Group’s property development and property management Companies through advisory roles in Papua New
Guinea and Australia.
She is a Director of Viva No 31 Ltd, a Steamships Trading Company joint venture Company, and has previously held positions
on the Divisional Boards of East West Transport and Steamships shipping. She graduated from Bond University in Australia and
holds a Bachelor of Commerce and a Bachelor of Laws.
D.H. Cox OL, OBE
Managing Director 2004 to 2012
Member of the Audit and Risk Committee
Member of the Strategic Planning Committee
Director since 2003
Mr Cox joined Steamships as a Manager in 1992, rising to become Managing Director from 2004-2012. He has extensive
experience in the Asia-Pacific business environment and holds an MBA in International Hospitality & BSc (Hons) in Accounting
& Business Management.
Lady W.T. Kamit CBE
Member of the Audit and Risk Committee
Director since 2005
Lady Winifred Kamit is a senior partner at Dentons PNG. Lady Kamit is a Director of Bunowen Services Ltd, Kamchild
Limited, Dentons Administration Services Ltd, Post Courier Limited and its subsidiaries, Brian Bell Group and Chairman of
ANZ Banking Group (PNG) Ltd.
Lady Kamit also serves on a number of non-government and charitable organisations, including Anglicare PNG Inc and is
Patron of the Business Coalition for Women Inc.
66 Steamships Annual Report 2021
DIRECTORS’ REPORT
Steamships Trading Company Limited Year ended 31 December 2021
J.B. Rae-Smith
Director since 2019
Mr Rae-Smith joined the Board of United States Cold Storage, Inc in June 2008 and has been its Chairman since January 2017.
He joined the Swire Group in 1985 and has worked with the Group in Australia, Papua New Guinea, Japan, Taiwan, Hong
Kong, the United States, Singapore, and the United Kingdom.
He was a Director of Swire Pacific Limited, a company listed in Hong Kong, from January 2013 to August 2016 and was the
Executive Director of the Marine Services Division from 2005 to 2016, the Trading & Industrial Division between 2008 and
2016 and Chairman of the Swire Group Charitable Trust. He has led or has been involved with many Swire Group businesses
over the years and was most recently the Chief Executive Officer of Swire Oilfield Services. He also a Director and Chairman
of the Audit and Risk Committee of Swire Shipping Co Ltd Pte and Swire Bulk Ltd Pte and a Director of Steamships Trading Co.
Ltd. He is also a member of the Supervisory Board of the UK Chamber of Shipping.
In addition, he has also been a Director of the Standard P&I Club, Deputy Chairman of the Hong Kong Ship Owners
Association, Chairman of the Lloyds Asian Ship Owners Committee, and a Director of the Singapore Environmental Council.
M.R. Scantlebury
Managing Director 2018 to 20th September 2020
Finance Director & Company Secretary since June 2016
Mr Scantlebury is a chartered accountant and was previously Director of the Office for Financial Planning at Swire Pacific Ltd
in Hong Kong and he has held various senior finance and commercial positions in the Swire group in his career. He holds
Directorship of various Steamships Trading Company subsidiaries, joint ventures, and associated companies.
J.H. Woodrow
Director since 2015
Mr Woodrow is Managing Director of Swire Shipping Pte Limited. He was formerly Director Cargo for Cathay Pacific (2013-
2015) and General Manager Cargo Sales & Marketing for Cathay Pacific (2010-2013). He joined John Swire and Sons Ltd in
September 1990 and spent 15 years in the sea freight industries in Japan and Australia.
He was also a Director of various companies across Asia including Air Hong Kong Ltd, Air China Cargo Ltd, Cathay Pacific
China Cargo Holdings Ltd, Cathay Pacific Services Limited.
Steamships Annual Report 2021 67
DIRECTORS’ REPORT
Steamships Trading Company Limited Year ended 31 December 2021
Remuneration of Directors
Directors remuneration received or receivable from the Company as directors during the year, is as follows:
G.L Cundle (Chairman)
G. Aopi
Lady W.T. Kamit
Sir M.R. Bromley
D.H Cox
G.J. Dunlop
J.H Woodrow
J.B Rae Smith
L.M. Bromley
P.J Aitsi
2021
K’000
243
70
189
125
244
139
133
133
201
40
1,517
2020
K’000
218
121
169
217
217
241
121
185
121
-
1,610
The directors fees vary in accordance with the required duties on various sub-committees of the board.
* Executive Directors receive no fees for their service as Directors during the year.
Remuneration of Employees
The number of employees whose remuneration and other benefits was within the specified bands are as follows:
Remuneration
K’000
2021
No.
2020
No.
Remuneration
K’000
2021
No.
2020
No.
Remuneration
K’000
2021
No.
2020
No.
100-110
110-120
120-130
130-140
140-150
150-160
160-170
170-180
180-190
190-200
200-210
210-220
220-230
230-240
240-250
260-270
270-280
280-290
5
10
5
7
7
4
4
3
5
4
4
3
2
4
4
5
1
1
4
7
7
14
6
5
4
1
2
1
3
1
-
4
5
1
3
2
290-300
300-310
330-340
350-360
360-370
370-380
380-390
390-400
410-420
420-430
430-440
440-450
460-470
480-490
500-510
530-540
540-550
560-570
1
2
1
1
1
2
1
-
1
1
2
1
-
-
1
2
1
-
2
-
2
1
-
-
-
2
-
-
-
-
1
3
1
1
2
1
570-580
600-610
620-630
650-660
660-670
710-720
720-730
770-780
810-820
820-830
840-850
850-860
910-1000
1,000-1,010
1,800-1,900
2,000-2,800
3,000-3,200
-
7
-
-
-
4
-
-
3
-
1
1
3
2
1
2
-
-
-
1
3
1
1
1
1
2
1
1
1
2
1
-
1
1
For and on behalf of the Board:
Port Moresby
31 March 2022
G.L. Cundle
Chairman
R.P.N. Bray
Managing Director
68 Steamships Annual Report 2021
STOCK EXCHANGE INFORMATION
Steamships Trading Company Limited Year ended 31 December 2021
Shares are listed on the Australian Securities Exchange and the Port Moresby Stock Exchange.
All shares carry equal voting rights.
Shareholdings
At 28 February 2022, there were 361 shareholders.
277 Holding
Holding
73
Holding
17
Holding
10
Holding
4
-
1
-
1,001
-
5,001
-
10,001
100,000 -
1,000 units
5,000 units
10,000 units
100,000 units
over
The number of shareholders holding less than a marketable parcel was 42.
The 20 largest shareholders were:
Number of shares
JS&S (PNG) LIMITED
BERNE NO 132 NOMINEES PTY LTD
NATIONAL SUPERANNUATION FUND LIMITED
BERNE NO 132 NOMINEES PTY LTD
JOHN E GILL OPERATIONS PTY LIMITED
HYLEC INVESTMENTS PTY LIMITED
BOND STREET CUSTODIANS LIMITED
MR RAMESH MAHTANI
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
BUDLEAF PTY LIMITED
INTERCONTINENTAL ASSETS PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
MRS LUCY ANN KING
MS JENNIFER MAY FORBES
CUSTODIAL SERVICES LIMITED
MRS JUDITH SCOTTHOLLAND
MRS MARY PATRICIA HAUGHTON
MRS ROBYN ANNE GOSTELOW
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
22,362,651
5,760,000
1,859,446
446,494
54,727
32,500
23,067
21,700
20,767
18,607
16,867
15,000
16,363
10,348
10,000
8,768
8,161
8,161
7,393
6,850
30,707,870
%
72.12
18.58
6.00
1.44
0.18
0.10
0.07
0.07
0.07
0.06
0.05
0.05
0.05
0.03
0.03
0.03
0.03
0.03
0.02
0.02
99.03
Applicable Legislation
The Company is incorporated in Papua New Guinea and is not generally subject to Australian Corporations Law including,
in particular, Chapter 6 of the Australian Corporations Law dealing with the acquisition of shares (including substantial
shareholdings and takeovers). The Company is subject to the requirements of the Papua New Guinea Companies Act 1997,
Securities Act 1997 and the Takeovers Code. The Companies Act and the Securities Act regulate the issue and buy-back of
shares and contain provisions as to the trading in securities, provisions as to financial benefits to related parties, substantial
shareholders provisions, remedies in cases of oppression or injustice and actions by, and access to, records by shareholders.
The Takeovers Code regulates offers where a person already holds more than 20% of the voting rights in a company or where
a person becomes the holder of more than 20% of the voting rights in a manner permitted by the Code.
A code offer, which can either be a full offer or a partial offer, must be extended to all holders of voting securities in the
Company. The Code also contains compulsory purchase and sale provisions if more than 90% of the shares are acquired
under an offer.
Steamships Annual Report 2021 69
70 Steamships Annual Report 2021
Steamships Annual Report
COMPANY DIRECTORY
CHAIRMAN
G. L. Cundle §&
MANAGING DIRECTOR
R.P.N. Bray §&
FINANCE DIRECTOR
M. R. Scantlebury
NON-EXECUTIVE DIRECTORS
P. J. Aitsi MBE
L.M. Bromley +§&
D. Cox OL, OBE +&
Lady W.T. Kamit, CBE +
J.B. Rae Smith
J. H Woodrow
+ Member of the Audit and Risk Committee
§ Member of the Remuneration and Nomination Committee
& Member of the Strategic Planning Committee
SECRETARY
M.R. Scantlebury
REGISTERED OFFICE
Part of Allotment 31, Section 140,
Walter Bay Industrial Centre Building 1, Units 1-4, Matirogo
Port Moresby, NCD
Papua New Guinea
Telephone: +675 313 7400 / 79987000
P.O. Box 1
Port Moresby, NCD
Papua New Guinea
AUDITORS
PricewaterhouseCoopers
P.O. Box 484
Port Moresby, NCD
Papua New Guinea
SHARE REGISTRARS
Computershare Investor Services Pty Limited
GPO Box 2975
Melbourne VIC 3001
AUSTRALIA
Telephone: (Aus) 1300 85 05 05
(Overseas)
Fax:
+61 (0)3 9415 4000
+61 3 9473 2500
STOCK EXCHANGE
Shares are listed on both the PNGX Markets Limited
and the Australian Securities Exchange Limited.
A. R. B. N.
055 836 952
Part of Allotment 31, Section 140, Walter Bay Industrial Centre Building 1
Units 1-4, Matirogo, Port Moresby, National Capital District, Papua New Guinea
P.O. Box 1, Port Moresby NCD 121, Papua New Guinea
P: +675 313 7400 / 79987000
steamships.com.pg
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