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Credit Corp PNG posts profit

19 March 2014
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THE Credit Corporation (PNG) Ltd has reported a K85.20 million operating profit for last year, up K4.66 million from the previous year’s K80.54 million.

The consolidated results for the year ended December 31, 2013 were released last week by Garth Mcllwain, chairman of the board.

Total assets posted was K1.042 billion at year end, up from K1.008 billion at the end of 2012.

A dividend payment of K38.19 million was distributed to shareholders last August, up 20% compared with the K31.74 million paid in August of the previous year.

Last year, the fair value assessment of investment property resulted in a negative adjustment of K6.86 million.

Bank South Pacific (BSP) shares traded at K7.98 million at year end, down from K8.06 million at the end of 2012.

This was the reason for a negative adjustment of K1.73 million booked in the investments revaluation figure.

Credit Corp said that an extraordinary expenditure of K1.93 million was incurred in respect to the BSP offer of K250 million for the purchase of the four subsidiaries of the finance company.

This was rejected by the shareholders.

Following these adjustments, a group after-tax profit of K59.11 million was achieved.

“Ongoing trading prospects for 2014 are challenging as the PNG economy adjusts to the ongoing low agricultural commodity prices and reduced LNG and mining activity,” Mcllwain said.

“However, reasonable finance business volumes were settled during January and February 2014.

“The completion of the Era Dorina Stage 5 project will boost rental revenue for 2014.

“Vacancies are anticipated in the Credit House office building in terms of current tenancy agreements and necessary measures are in place to address this.

McIIwain said all group subsidiary companies continued to trade with very strong liquidity and generous capital.

He said that the board has remained confident that this year would continue to produce good profit and the company group would maintain its respected status among the largest locally-owned corporations in the South Pacific.

The group company’s operations included financing and property.

Port Moresby (The National)

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