by Delly Waigeno – EM TV News, Port Moresby
Nambawan Super have announced strong financial results for the first half of 2015, highlighted by a pre-tax profit of K168 million representing a return of approximately 3.5%.
Nambawan Super Board Chairman, Anthony Smare, who announced the highlights was joined by Chief Investment Officer, Dr Stephen Nash and Chief Finance Officer, Chetan Chopra.
“Our net asset value is nearing K5 billion and our management expenses remain contained. The 3.5% return is an excellent return in challenging conditions,” Smare announced.
Smare also stressed that the return of K168 million excludes any valuation adjustments for unlisted equity and their property portfolio.
“Again it is important to note that the return of K168 million does not include any valuation adjustments for our unlisted equity or our property portfolio which includes our newly completed treasury building and our nearly completed Vele Rumana building in Lae.
“You will note that it also does not include the strong performance of our investment on Kina Securities Limited which listed last month on the Australian Stock Exchange and is currently trading 25% higher than the listing price,” he explained.
The earnings came from a range of investments but the main contribution came from investment in GIS bonds.
The positive results were however followed by warnings to members of the challenges that PNG will be facing in the later part of the year. These relate to recent economic developments.
“The recent challenging economic times have led to moderate revenue estimations in the Mid-Year Economic and Fiscal Outlook (MYEFO) statement. Instead of the budgeted GDP growth, in 2015 of 15.5%, the MYEFO states that it will be now be much lower; around 11.0% in 2015,” Smare said.
“I would encourage all members to continue to save, and to not be distracted from saving. Saving remains critical to the long-term financial survival of all our members, and it remains too important to ignore; either now, or at any time in the future.”
The Nambawan Super Board have assured its members that it will continue to prudently manage the portfolio for the benefit of the members through these challenging times ahead.