Steamships Trading Company (SST) H1 2024 earnings summary

Executive summary

• Revenue rose 7.4% year-over-year to K338.96 million for the half-year ended 30 June 2024, with net profit attributable to shareholders up 4.3% to K25.27 million.

• Growth was primarily driven by the Property and Logistics divisions, despite soft economic conditions and delays in major resource projects.

• Interim dividend of 40 toea per share proposed, subject to Board approval.

Financial highlights

• Profit before tax increased to K37.79 million from K33.25 million year-over-year.

• Net operating cash flow slightly decreased to K53.37 million from K54.26 million.

• Capital investment for the period was K69.64 million, down from K114.69 million in 2023.

• Cash and bank balances at period end were K30.73 million, up from K5.70 million a year earlier.

• Basic and diluted EPS increased to 81.5 toea from 78.1 toea.

Outlook and guidance

• Second half expected to be stronger, with improved project activity and reopening of the Porgera mine anticipated to boost economic activity.

• Inflation and foreign currency access remain challenges, but agricultural commodity prices and resource sector developments offer optimism.