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Credit Corp attributes fall in profit to PNG LNG project

Staff Reporter | 4:31 AM | |
ANOTHER major company says the completion of the PNG LNG project construction phase last year impacted its financial performance. 
Credit Corporation Ltd chief executive Robert Allport said with the project moving from construction to production, the demand for both the company’s core business of finance and property slowed considerably during 2014. 
He said Credit Corporation recorded a net profit of K24.52 million last year, 3 per cent less than the previous year.   
“The 2014 financial year was very challenging one for the Credit Corporation (PNG) Ltd group,” Allport said in the group’s annual report.
“Despite a slowdown in the PNG economy during the year, the group recorded solid results for 2014. With the PNG LNG project moving from its construction phase into production phase, the demand for both our core business of finance and property slowed considerably during the year.”
Allport said an adjustment of K14.02 million was booked against the profit and loss account due to a write down in the fair value of the group’s investment property portfolio. 
He added that a negative adjustment of K34.42 million was largely due to the reduction in the value of BSP shares traded on the Port Moresby stock exchange.
The company held its annual general meeting yesterday where acting chairman Sir Wilson Kamit said that directors had resolved to pay a dividend of 13 toea per share.
Chairman Garth McIlwain in his report said the group’s total assets reached K1.1 billion at end of last year, which indicated a moderate increase from K1.03 billion in previous corresponding period.
He said shareholders equity was K719.21 million, a slight reduction from K736.98 million from end of previous year.
McIlwain said that was largely as a result of fair value and mark to market adjustments and a dividend payment of K41.23 million distributed to shareholders last August.