Business Description:
Steamships Trading Company Limited (SST) is a diversified trading company operating in Papua New Guinea (PNG). The company has interests in Shipping, Road Transport, Product Manufacture, Property, Hotels and Information Technology industries.

Strategy Analysis:
SST's strategy is to expand its range of operations through acquisitions and joint venture agreements. Performance in the shipping division has been driven by higher international trades and increased efficiency. The hotel division has experienced growth through the acquisition and development of real estate sites throughout Papua New Guinea. The manufacturing division is focused on the development of new products with product lines continue to be evaluated. SST continues to explore innovative training and skills development solutions, forming close relationships with institutions such as the National Maritime College to reinforce the company's skills succession strategies. The greatest threat to SST's operations is the political and economic environment that it operates in. Steamships Trading Company reported NPAT up 13.3% to K64.54m for the half-year ended 30 June 2011. Revenues from ordinary activities were K423.85m, up 15.6% from the same period last year. Basic and Diluted EPS was 208.1 toeas compared to 183.7 toeas last year. Net operating cash flow was K113.42m compared to K59.01m last year. The interim dividend declared was 50 toeas compared with 50 toeas last year. Looking ahead, the directors anticipate that the second half of 2011 will continue to see an improvement in earnings as the current economic conditions persist and the LNG project continues.