PNG Ports Corporation Limited (PNG Ports) has announced a net profit of over K100 million, for the third consecutive year.
The State Owned Enterprise announced a total of around K110,053,586 as Net Operating Profit after Tax (NOPAT) for the 2023 fiscal year, showing positive growth, after recovering from the significant impact the COVID pandemic had on the entire maritime industry.
From this profit, PNG Ports has declared a dividend of approximately K27.5 million to Kumul Consolidated Holdings, for the 2023 fiscal year.
In 2021 and 2022, PNG Ports made profits of K102.6 million and K104.5 million respectively. Together with the 2023 profit, this represents a total of almost K320 million in profits over the past three years.
CEO of PNG Ports, Neil Papenfus, has attributed the 2023 profit to efficiency improvements and prudent financial management with regard to PNG Ports’ core revenue streams of wharfage, berthage, storage, pilotage and terminal leasing, as well as an increase in vessel traffic.
PNG Ports operates in a demand-driven industry where an increase in the demand for trade causes higher vessel calls and greater cargo volumes in and out of a port. However, PNG Ports’ overall capacity to generate a profit is impacted by its requirement to operate and look after its 12 Community Service Obligation (CSO) ports, which all run at a loss.
“These CSO ports,” says Mr Papenfus, “are essentially subsidized by the profitable ports of Lae, Port Moresby and Kimbe.”
“To continue to generate profits and simultaneously operate and maintain all 15 ports, PNG Ports is developing new revenue streams such as a Pilotage School, embarking on a program of process improvement and re-engineering, with plans to overhaul its IT system.
He said these initiatives would improve PNG Ports’ efficiency as well as customer experience, whilst positioning PNG Ports to meet the current and future industry demands.
Mr Papenfus, who took on the role of CEO in May, commended Chief Commercial Officer, Ian Hayden-Smart, who looked after the SOE, after the shock passing of late CEO, Fego Kiniafa, in 2022.
He also paid tribute to the late Kiniafa for the decisions made which were now producing results, and the guidance of the Board, as well as the management and staff for the hard work and commitment in PNG Ports’ ongoing profitability and success.
He added that the 2024 fiscal year had started off strong, with good results also expected as the SOE reviews its corporate strategies to strategically align itself to continue serving this nation.
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