Interim report
Page 1
Appendix 4D Half yearly report Appendix 4D Page 1 Rule 4.2A.3 Appendix 4D Half yearly results Name of entity Steamships Trading Company Limited ARBN Half year ended (‘current period’) 055836952 30 June 2026 Results for announcement to the market K'000 Revenues from ordinary operations Up/Down 14.3% to 413,373 Profit (loss) from ordinary operations after tax Up/Down (10.2%) to 23,591 Profit (loss) attributable to members Up/Down (12.2%) to 21,809 Dividends (distributions) Amount per security Franked amount per security Final Dividend – 2025 65t 0t Interim Dividend – 2026 35t* 0t Record date for determining entitlements to the dividend Not Applicable Refer Pages 3 and 4 for commentary. This report is to be read in conjunction with the most recent annual financial report. * Proposed interim dividend, subject to Board approval.
Page 2
Appendix 4D Half yearly report Appendix 4D Page 2 Directors’ Report The directors present their report together with the condensed interim consolidated financial information for the half-year ended 30 June 2026. Directors: The directors of the Company during or since the end of the half-year are: G.L. Cundle Director since 2013 and Chairman since 2015 Chairman P.J. Aitsi, MBE Director since 2021 L.M. Bromley Director since 2019 D.H. Cox OL, OBE Director since 2003 C.K. Daniells Director since 2024 C.D. Hansor Appointed as Director on 25 May 2026 C. Kasou Director since 2024 A. Mistroni Director since 2024 J.B. Rae Smith Director since 2019
Page 3
Appendix 4D Half yearly report Appendix 4D Page 3 Commentary Half Year Report to the Stock Exchange The Directors of Steamships Trading Company Limited (Steamships) announce an unaudited profit after tax and minority interests of K21.8 million for the six months to June 2026, a decrease of 12.2% over the same period in 2025. Profit before tax includes the following items: K6.8 million cash spend related to ongoing upgrade of enterprise resource planning (ERP) system K1.1 million insurance proceeds K0.4 million net gain on property disposals Revenue from ordinary operations increased 14.3% to K413.4 million compared to the same period last year. Underlying profit attributable to shareholders increased 27.2%, reflecting continued growth across the Group's portfolio. All divisions delivered results consistent with management's expectations. 6 months ended 30 June 2026 6 months ended 30 June 2025 Change K000's K000's Net Profit attributable to shareholders 21,809 24,840 (12.2%) Add / (Less) impact of significant items (post tax and minority interest) ERP implementation expensed 4,731 6,671 Net insurance claim settlement income – property damages (785) - Gain on disposal of assets (298) (11,491) Total impact of significant items 3,648 (4,820) Underlying profit attributable to shareholders 25,457 20,020 27.2% The charge for depreciation for the year to date of K62.4 million compared to K60.0 million in the same period in 2025. Capital investment increased for the six months, being K164.0 million (through existing facilities and available funding arrangements) against K130.5 million in 2025. The Group’s net operating cash flow generation increased to K115.8 million from K69.3 million in 2025. The Group had K28.0 million in cash and bank on 30th June 2026 (K37.9 million on 30th June 2025). An interim dividend of 35 toea has been proposed, subject to Board approval.
Page 4
Appendix 4D Half yearly report Appendix 4D Page 4 Trading Performance The Hospitality division delivered results in line with expectations during a period of continued extensive refurbishment programs across its Port Moresby properties. These renovations are expected to be completed over the next 12 months and will significantly strengthen the customer experience and quality of the product offering. The Property division performed in line with expectations with demand across its commercial and residential property portfolio remaining healthy. The first phase of the Dobel Shopping Centre is expected to open next quarter, with Phase 2 scheduled for completion in 2027. The Logistics division delivered results in line with expectations and reported growth on prior year supported by an increase in freight volumes underpinned by an improvement in reliability across the Marine business. Colgate-Palmolive (PNG) Limited, a PNG-incorporated joint venture, continued to deliver results consistent with expectations despite foreign exchange pressures on margins. Trading outlook Steamships remains cautiously optimistic about trading conditions for the second half of the year, supported by the ongoing investments in its product upgrades and service improvements across its portfolio and the strengthening business sentiment attributable to the uptick in activity from the resource sector.
Page 5
Appendix 4D Half yearly report Appendix 4D Page 5 CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2026 6 months ended 30 June 2026 K'000 6 months ended 30 June 2025 K'000 Revenue Revenue from operations 413,373 361,597 Other income (Note 3) 1,548 16,412 Operating expenses Cost of goods and services (75,258) (72,189) Staff costs (126,224) (98,253) Depreciation and amortisation (62,364) (59,996) Electricity and fuel (30,592) (29,601) Motor vehicle and vessel expenses (20,711) (17,376) Security costs (6,536) (7,124) Insurance (5,586) (4,318) Finance costs - net (4,826) (5,773) Other operating expenses (53,372) (48,674) Share of net profit of associates and joint venture entities accounted for using the equity method 4,051 3,290 Profit from operations before income tax 33,503 37,995 Income tax expense (Note 6) (9,912) (11,730) Profit for the six-month period 23,591 26,265 Other comprehensive loss Exchange differences arising from a foreign operation (100) - Total comprehensive income attributable to Continuing Operations 23,491 26,265 Total comprehensive income is attributable to: Owners of Steamships Trading Company Limited 21,809 24,840 Non-controlling interests 1,682 1,425 23,491 26,265 Basic and Diluted Earnings per security 70.3t 80.1t
Page 6
Appendix 4D Half yearly report Appendix 4D Page 6 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2026 Share Retained Other Non- controlling Total Capital Earnings Reserves Total Interests Equity K’000 K’000 K’000 K’000 K’000 K’000 Balance at 1 January 2025 24,200 1,083,520 (40,295)1,067,425 17,498 1,084,923 Profit for the period - 24,840 - 24,840 1,425 26,265 Dividends - (9,302) - (9,302) - (9,302) Balance at 30 June 2025 24,200 1,099,058 (40,295)1,082,963 18,923 1,101,886 Profit for the period - 42,220 - 42,220 1,607 43,827 Dividends - (12,404) - (12,404) - (12,404) Balance at 31 Dec 2025 24,200 1,128,874 (40,295)1,112,779 20,530 1,133,309 Profit for the period - 21,909 - 21,909 1,682 23,591 Dividends - (20,155) - (20,155) - (20,155) Other comprehensive loss – foreign currency translation reserve - - (100) (100) - (100) Balance at 30 June 2026 24,200 1,130,628 (40,395) 1,114,433 22,212 1,136,645
Page 7
Appendix 4D Half yearly report Appendix 4D Page 7 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Current Assets As at 30 June 2026 K’000 As at 31 Dec 2025 K'000 As at 30 June 2025 K’000 Cash and cash equivalents 28,001 37,670 37,860 Receivables and prepayments 166,016 202,213 181,918 Inventories 61,428 52,856 50,326 Income tax receivable 503 8,580 16,030 Assets held for sale (Note 4) 614 - - Total Current Assets 256,562 301,319 286,134 Non-Current Assets Property, plant and equipment 842,176 843,852 879,198 Investment properties 552,526 445,708 401,310 Investments in related companies 79,697 75,585 72,999 Intangible assets 76,433 76,433 76,433 Loans to related companies 191,146 167,039 158,188 Deferred tax assets 4,528 8,065 6,632 Total Non-Current Assets 1,746,506 1,616,682 1,594,760 Total Assets 2,003,068 1,918,001 1,880,894 Current Liabilities Trade and other payables 98,651 99,945 139,171 Lease liabilities 2,872 2,344 2,326 Provisions for other liabilities and charges 6,058 7,328 7,456 Loans from related companies 4,656 3,158 2,772 Loan from a minority shareholder 160 160 160 Borrowings 30,000 170,530 89,675 Total Current Liabilities 142,397 283,465 241,560 Non-Current Liabilities Other payables 25,405 25,405 29,414 Lease liabilities 53,398 52,256 52,923 Deferred tax liabilities 38,107 49,858 39,217 Borrowings 590,171 359,985 402,845 Provisions for other liabilities and charges 16,945 13,723 13,049 Total Non-Current Liabilities 724,026 501,227 537,448 Total Liabilities 866,423 784,692 779,008 Net Assets 1,136,645 1,133,309 1,101,886 Equity Share capital 24,200 24,200 24,200 Retained earnings 1,130,628 1,128,874 1,099,058 Other reserves (40,395) (40,295) (40,295) Capital and reserves attributable to the Company’s shareholders 1,114,433 1,112,779 1,082,963 Non-controlling interests 22,212 20,530 18,923 Total Equity 1,136,645 1,133,309 1,101,886
Page 8
Appendix 4D Half yearly report Appendix 4D Page 8 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2026 6 months ended 30 June 2026 K'000 6 months ended 30 June 2025 K'000 Cash flows related to operating activities Receipts from customers 450,691 339,667 Payments to suppliers and employees (317,878) (244,050) Interest and other items of similar nature received 5,144 1,068 Interest and other costs of finance paid (13,248) (18,494) Income taxes paid (8,946) (8,890) Net cash from operating activities 115,763 69,301 Cash flows related to investing activities Purchases of property, plant and equipment (163,957) (130,475) Loan issued to a joint venture (27,369) - Net loans repaid by related companies 1,228 5,179 Proceeds from sale of property, plant and equipment 543 19,499 Subscription of additional shares in joint venture companies - (20,873) Dividends received from an associate - 2,500 Net cash used in investing activities (189,555) (124,170) Cash flows related to financing activities Proceeds from borrowings 100,000 93,000 Dividends paid to shareholders (20,137) - Repayments of borrowings (14,332) (25,242) Lease repayments (1,408) (1,264) Net cash from financing activities 64,123 66,494 Net (decrease) / increase in cash held (9,669) 11,625 Net cash at beginning of the period 37,670 26,235 Net cash at end of the period (see Reconciliation of cash) 28,001 37,860 Reconciliation of cash Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows: Current period K'000 Previous corresponding period K'000 Cash on hand and at bank, term deposits 28,001 37,860 Bank overdraft - - Total cash at end of period 28,001 37,860
Page 9
Appendix 4D Half yearly report Appendix 4D Page 9 OTHER NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 1. Ratios Current period Previous corresponding Period Profit before tax / revenue Consolidated profit from ordinary activities before tax as a percentage of revenue 8.1% 10.5% Profit after tax / equity interests Consolidated net profit from ordinary activities after tax attributable to members as a percentage of equity (similarly attributable) at the end of the period 2.0% 2.3% Earnings per security (EPS) Calculation of the following in accordance with IAS33: Earnings per Share (a) Basic EPS (b) Diluted EPS (c) Weighted average number of ordinary shares outstanding during the period used in the calculation of the Basic EPS 70.3t 70.3t 31,008,237 80.1t 80.1t 31,008,237 NTA backing Net tangible asset backing per ordinary security K34.19 K33.07
Page 10
Appendix 4D Half yearly report Appendix 4D Page 10 2. Material interests in entities which are not controlled entities Name of entity Percentage of ownership interest held at end of period or date of disposal Equity accounted for contribution to net profit (loss) Equity accounted associates and joint venture entities Current period Previous corresponding period Current period - K'000 Previous corresponding period - K'000 Colgate Palmolive Limited Riback Stevedoring Limited Makerio Stevedoring Limited Nikana Stevedoring Limited Harbourside Development Limited Pacific Rumana Limited Viva No. 31 Limited Wonye Limited Wonye No. 2 Limited Gulf Maritime Services Limited Hebamo Transport Limited 51 49 45 45 50 50 50 50 50 47.5 49 51 49 45 45 50 50 50 50 50 47.5 49 2,721 - (83) 158 - 499 34 632 121 (28) (3) 1,712 - 17 258 - 364 75 759 105 - - Total 4,051 3,290 3. Other income Other income relates to net insurance proceeds and net gain on property and logistics assets sale. 4. Assets held for sale Assets held for sale relate to Madang, Lae and Kokopo properties. 5. Basis of Accounting This interim consolidated financial information has been prepared in accordance with IAS 34 Interim Financial Reporting. For more details on the accounting policies, please refer to the annual report of Steamships Trading Company Limited for the year ended 31 December 2025. The Group applies International Financial Reporting Standards and other generally accepted accounting practice in Papua New Guinea. These policies have been consistently applied to all periods presented. There were no changes in significant accounting policies in the current half year period.
Page 11
Appendix 4D Half yearly report Appendix 4D Page 11 6. Income Tax Expense The effective rate of tax charged differs from the statutory rate of 30% as follows: Current period K'000 Previous corresponding period K'000 Net profit before income tax 33,503 37,995 Prima facie tax on profit before income tax at 30% 10,051 11,399 Tax on non-assessable income (1,215) (987) Tax on non-deductible expenses 550 483 Adjustments of current tax of prior periods (655) 531 Unrecognised deferred tax asset on losses 1,181 304 9,912 11,730 7. Contingent and Other Liabilities There were contingent liabilities at the Balance Sheet date as follows: (a) Steamships Trading Company Limited holds a 51% interest in an associated company, Colgate Palmolive (PNG) Ltd, (“CP (PNG Ltd”). In 2022 CP (PNG) Ltd received a notice from PNG Customs seeking to reassess the historic rate of import duty applied to a specific product, known as soap noodles, resulting in an additional duty of K11.1 million and an intention to apply the higher rate on future imports. CP (PNG) Ltd has disputed the interpretation of the product characteristics by PNG Customs and formally appealed against this higher assessed rate of duty. The appeal process remains in progress. To the extent that any of the additional duty is deemed payable by CP (PNG) Ltd following the appeal process, the Group’s share of profits from associates and the equity accounted investment in CP (PNG) Ltd will be reduced by 51% of the amount payable, net of any tax effect. (b) The parent entity has given a secured guarantee in respect of the bank overdrafts and loans of certain subsidiaries, associates and joint ventures. (c) The parent entity has given letters of comfort of continuing financial support in respect of certain subsidiaries, associates and joint ventures. No material losses are anticipated in respect of these guarantees. 8. Capital Commitments As at 30 June 2026, the Group had contracts outstanding for capital expenditure of K39.9 million in respect of property developments, tugs and vessels and all due within 12 months (prior year capital commitments of K46.8 million all due within 12 months).
Page 12
Appendix 4D Half yearly report Appendix 4D Page 12 9. Divisional Segments The Group operates in the following commercial areas: Property and Commercial and Hospitality Logistics Investment Total K'000 K'000 K'000 K'000 June 2026 External revenue and other income 147,461 262,793 4,667 414,921 Interest revenue - 18 10,091 10,109 Interest expense (2,860) - (12,075) (14,935) Segment results 45,361 14,453 (30,362) 29,452 Add: Share of associate and joint venture profit - - 4,051 4,051 Total segment result 45,361 14,453 (26,311) 33,503 Income tax credit /(expense) 30 (3,100) (6,842) (9,912) Group profit from continuing operations 45,391 11,353 (33,153) 23,591 Segment assets 1,389,316 415,064 198,688 2,003,068 Segment liabilities (272,720) (218,372) (375,331) (866,423) Net assets 1,116,596 196,692 (176,643) 1,136,645 Capital expenditure 88,403 65,574 9,980 163,957 Depreciation (23,232) (37,715) (1,417) (62,364) Cost of goods and services 13,385 (87,515) (1,128) (75,258) Staff costs (29,639) (80,446) (16,139) (126,224) Significant items: ERP costs - - (6,759) (6,759) Net insurance proceeds 1,121 - - 1,121 Net gain on asset disposal - 427 - 427
Page 13
Appendix 4D Half yearly report Appendix 4D Page 13 Property and Commercial and Hospitality Logistics Investment Total K'000 K'000 K'000 K'000 June 2025 External revenue and other income 151,604 224,948 1,457 378,009 Interest revenue - 40 5,045 5,085 Interest expense (2,360) - (8,498) (10,858) Segment results 58,994 4,160 (28,449) 34,705 Add: Share of associate and joint venture profit - - 3,290 3,290 Total segment result 58,994 4,160 (25,159) 37,995 Income tax (expense) / credit (17,698) (1,248) 7,216 (11,730) Group profit from continuing operations 41,296 2,912 (17,943) 26,265 Segment assets 1,044,023 625,537 211,334 1,880,894 Segment liabilities (105,456) (404,785) (268,767) (779,008) Net assets 938,567 220,752 (57,433) 1,101,886 Capital expenditure 93,078 37,397 - 130,475 Depreciation (22,177) (36,522) (1,297) (59,996) Cost of goods and services (34,862) (36,384) (943) (72,189) Staff costs (28,272) (56,232) (13,749) (98,253) Significant items: Net gain on asset disposal 16,428 (16) - 16,412 ERP costs - - (9,531) (9,531)
Page 14
Appendix 4D Half yearly report Appendix 4D Page 14 10. Subsequent events On 7th July 2026, the Group completed the sale of its Madang property for a total consideration of K5.2 million. Signed in accordance with a resolution of, and on behalf of the Board. A. Mistroni C.K. Daniells Finance Director Managing Director
Page 15
PricewaterhouseCoopers, PwC Haus, Level 6, Harbour City, Konedobu, PO Box 484 Port Moresby, Papua New Guinea T: +675 321 1500 / +675 305 3100 www.pwc.com/pg Report on review of the condensed interim consolidated financial information to the Directors of Steamships Trading Company Limited Introduction We have reviewed the accompanying condensed consolidated statement of financial position of Steamships Trading Company Limited (the Company) and its subsidiaries (together the Group) as at 30 June 2026 and the related condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-month period then ended and notes, comprising material accounting policy information and other explanatory notes. The Directors are responsible for the preparation and presentation of this consolidated interim condensed financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this condensed interim consolidated financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’. Restriction on distribution or use This report is made solely to the Directors of the Company, as a body. Our review work has been undertaken so that we might state to the Directors those matters which we are required to state to them in our review report and for no other purpose. We do not accept or assume responsibility to anyone other than the Directors of the Company, as a body, for our review work, for this report or for the conclusion we have formed. PricewaterhouseCoopers Chris Wickenhauser Partner P o r t M o r e s b y Registered under the Accountants Act 1996 28 August 2026