Steamships Trading : SST_Full_Year_Accounts_2016_FINAL

A N N U A L R E P O R T

2016

ConteCOnNTEtNsTS

Brief Profile of Steamships Trading Company Limited . . . 2 Financial Highlights . . . . . . . . . . . . . . . . . . . . 4

Chairman's Report . . . . . . . . . . . . . . . . . . . . . 6

Directors' Review . . . . . . . . . . . . . . . . . . . . . 7

Review of Operations - LOGISTICS . . . . . . . . . . . . 8 Consort Express Lines . . . . . . . . . . . . . . . . 8

Pacific Towing . . . . . . . . . . . . . . . . . . . . 9 Transport & Port Services . . . . . . . . . . . . . 10

Review of Operations - PROPERTY . . . . . . . . . . . 11 Coral Sea Hotels . . . . . . . . . . . . . . . . . . 11 Pacific Palms Property . . . . . . . . . . . . . . . 12

Review of Operations - COMMERCIAL . . . . . . . . . 13 Laga Industries . . . . . . . . . . . . . . . . . . . 13

Colgate Palmolive . . . . . . . . . . . . . . . . . 14

Sustainability . . . . . . . . . . . . . . . . . . . . . . . 15

Corporate Governance . . . . . . . . . . . . . . . . . . 16

Financial Section . . . . . . . . . . . . . . . . . . . . . 17 Statements of Comprehensive Income . . . . . . . 17 Statement of Changes in Equity . . . . . . . . . . 18 Balance Sheets . . . . . . . . . . . . . . . . . . . 19 Statements of Cash Flows . . . . . . . . . . . . . 20 Notes to the Financial Statements . . . . . . . . . 21 Independent Auditor's Report . . . . . . . . . . . 52 Directors' Report . . . . . . . . . . . . . . . . . . 58 Stock Exchange Information . . . . . . . . . . . . 62

Company Directory . . . . . . . . . . . . . . . . . . . IBC

Steamships Annual Report 2016 1

BRIEF PROFILE OF STEAMSHIPS GROUP

Steamships Trading Company (Steamships) is a committed investor in Papua New Guinea with a near 100 year history. The group is a well-established business conglomerate with diverse commercial interests and listings on both the Australian and Port Moresby 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.

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 3,500 PNG citizens and non-citizens in 6 diverse divisions grouped under the 3 operating categories of Logistics, Property and Commercial.

  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.

• 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.

Ninety-eight years on, Steamships is still showing it has the resources and capacity, vision and capability to meet the dynamic needs of a growing country.

2 Steamships Annual Report 2016