‘Economy Would Rebound Later This Year’

by PNG Business News - September 06, 2021

According to Steamships Trading Company Ltd, the national economy would rebound later this year and beyond 2022.

In its half-year report for the fiscal year 2021, the corporation indicated that recent government announcements on key resource development projects were encouraging.

The group's Coral Sea Hotels had a strong start to the year, aided by the quarantine requirement for visitors to PNG.

“The Ela Beach Hotel food and beverage offering improved considerably with a new restaurant, bar and takeaway outlets which opened early this year,” the company said. “Cost management remained a key focus.

“Demand is currently stable but any relaxation of quarantine requirements will have a negative impact on second-half performance.

“Steamships is adapting to meet the changing demand in the economy and positioning its businesses for a medium-term economic recovery.”

In the meantime, the group successfully secured the renewal of a portion of its existing funding arrangements with a major bank in PNG.

“Also, after the period ended, Steamships agreed to sell its wholly-owned subsidiary, Croesus Holdings Ltd, an indirectly wholly-owned subsidiary, Croesus Re PCC Ltd, both incorporated in the Isle of Man, to its majority shareholder John Swire & Sons Ltd at net book value.

“The valuation was supported by an independent accounting expert.

“The transaction was recommended by a sub-committee of the independent directors of the Steamships board and approved by the Steamships board.

“Completion of the transaction remains subject to approval from the Isle of Man Financial Services Authority.”

 

Reference: The National (1 September 2021). “‘Economy to recover this year’



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