PNG Economics Bulletin

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Prime Minister Marape Emphasises Commitment to Securing Maximum Benefits for PNG in Wafi-Golpu Mine Development

Prime Minister Marape Emphasises Commitment to Securing Maximum Benefits for PNG in Wafi-Golpu Mine Development Port Moresby, 18 March 2025 – Prime Minister Hon. James Marape has reinforced...

MINISTER FOR WORKS AND HIGHWAYS RESPONSE TO CENTRAL GOVERNOR’S CONCERNS ON THE CONNECT PNG PROGRAM

The Marape – Rosso Administration acknowledges the concerns raised by the Governor for Central Province in the news media on the 4th March 2025, regarding security risks associated with the...

Captain Beverley Pakii Sets New Milestone as Papua New Guinea’s First Airbus A220 Captain

Air Niugini’s Captain Beverley Pakii continues to record milestones in the aviation industry, this time becoming the first Papua New Guinean Airbus A220 Captain after successfully completing her type...

Santos Reviews CEPA Directive for K50 Million Compensation to Kutubu Landowners

Santos, the operator of the Kutubu oil fields says it is reviewing a direction by the PNG lead  environment regulator to pay millions of kina to Kutubu landowners for damages to two river...

MRA Management, Staff Welcome New Mining Minister Wake Goi

The Mineral Resources Authority (MRA) management and staff officially welcomed the newly appointed Mining Minister, Hon. Wake Goi MP, to the MRA on yesterday.  Minister Goi, who serves as the...

Bougainville Labour Mobility Alumni Celebrate Successful Pilot Program

Bougainvillians returning from seasonal work in Australia are leveraging their newly acquired skills and earnings to launch agricultural projects and businesses within their communities. Recently...

Santos announces refinancing of syndicated debt facility

Santos this week announced it had executed documentation to refinance its 2025 maturing syndicated bank loan facility. Santos holds leading shares in the PNGLNG Project following the successful merger...

Twinza’s Pasca A Gas Project on the cards to boost PNG Economy: PM satisfied with Progress

Prime Minister James Marape yesterday convened with State Lead Negotiator Dairi Vele yesterday to discuss key developments related to the Pasca Gas Condensate Project, located offshore from Kerema...

Kina Asset Management Ltd Declares Record Interim Dividend for 2024

Kina Asset Management Ltd (KAML) has announced a historic interim dividend of 20 toea per share for the half-year ending 30 June 2024, following a strong net profit of K9.9 million. This record...

CPL Group Reports Challenges and Strategic Resilience Amid PNG’s Economic Slowdown

PNG leading retailer CPL Group has announced its financial results for the first half of the year, highlighting a 13% decline in revenues, totaling K239.5 million, as the company grapples with the fallout from the January 10 riots which resulted in the closure of four stores.

Group Chairman Stan Joyce in a company statement released to the Port Moresby Stock Exchange said broader economic slowdown affecting various sectors in Papua New Guinea (PNG) has compounded these challenges, leading to a loss before tax of K13.8 million.

“Despite a slight improvement in gross profit margins, which increased by 1.9% to 33.9%, the group’s overall expenses rose by 4.6%. A significant portion of these expenses arose from the financial losses resulting from the riots, overshadowing the support received from the National Government” Mr. Joyce said.

In a bid to adapt and recover, CPL Group successfully reopened the SNS Badili store and launched a new SNS outlet at 8 Mile. The relocation of the SNS Gerehu store to a new site marks a proactive effort to enhance customer access and operational efficiency. The group’s pharmacy division, under the City Pharmacy brand, has experienced a 9% increase in sales, contributing an additional K6.3 million compared to last year, underscoring a sustained demand for health services amid economic uncertainty.

Conversely, the hardware division has struggled due to diminished project activity in rural areas and increased competition, which has adversely impacted sales. While joint ventures with Prouds DFS and Jacks of PNG managed to generate revenue growth, rising operational costs have eroded profit margins by K728,000 compared to the previous year.

In light of the challenges presented by the January events, CPL Group is focusing on strategic initiatives to foster sustainable growth. The appointment of Mr. Kee Lim as Executive Director reflects a commitment to improve operational efficiencies and better navigate the current economic landscape.

The company remains cautiously optimistic about achieving a break-even result by the end of the year, driven by ongoing efforts to adapt to changing economic conditions.

CPL Group emphasized its commitment to retaining staff throughout this difficult period, despite the significant impact on cash flow stemming from the January riots. The collaboration with banks and suppliers has been instrumental in managing these challenges effectively.

The company expressed appreciation to the PNG Government for its financial assistance, which has been critical in addressing the repercussions of the riots. CPL Group hopes that such disruptive incidents can be avoided in the future.

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