Capital Markets
From The Report: Papua New Guinea 2016
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After a number of challenging years, Papua New Guinea’s capital markets seem to be finding their footing and may be on the cusp of great and positive change. In 2015 the country had its first initial public offering in three years, and it was a significant listing: a major local financial services group with part ownership of the stock exchange. Also, in 2016 a key stock started trading again after having been suspended in 2014. Significant reforms are being discussed, with Prime Minister Peter O’Neill weighing in, and these could result in much-needed consolidation and modernization of capital markets regulation and oversight.
This chapter contains a viewpoint from Richard Borysiewicz, General Manager, BSP Capital.
Articles from this Chapter
Trading up: An expected modernisation of regulations and infrastructure will transform local markets
Time for change: The debt market is expected to benefit from a slew of reformsOBGplus
Like the equity markets, the debt markets in Papua New Guinea are set for a major overhaul. Work is being contemplated and being done, with World Bank support, on the relevant market infrastructure, regulators and regulations, and the processes and procedures for the issuing and trading of securities. The debt markets at the moment are largely over the counter (OTC) and manual, with a low level of transparency. If all goes according to plan, in a few years bonds will be trading electronically,…
Knock-on effects: Richard Borysiewicz, General Manager, BSP Capital, on the impact of the UK exit from the EUOBGplus
Viewpoint:Richard Borysiewicz Inevitably there will be a certain degree of speculation around this question for quite some time, as it will take months or perhaps years before the new UK-EU relationship will be finally defined. During this period of uncertainty, the markets are expected to experience consistent volatility, as investors will be increasingly wary about taking risks, with the focus on protecting interests and returns. From an asset allocation point of view, it means that people…
NGIP Agmark: Agro-industryOBGplus
The Company New Guinea Islands Produce Agmark (NGIP Agmark) is a diversified agri-business based in PNG and operating plantations, coastal shipping, hardware, machinery, trucking, logistics, stevedoring, retailing, engineering, and property development and investment. Headquartered in Kokopo, East New Britain Province, it was formed due to the amalgamation of two companies, New Guinea Islands Produce Company and Agmark Pacific, which joined in 2005. NGIP Agmark is PNG’s leading cocoa company and its largest cocoa grower, trader and exporter, selling to markets including Asia, Europe and the US. NGIP Agmark has faced major challenges…
NGIP Agmark: Agro-industryOBGplus
The Company New Guinea Islands Produce Agmark (NGIP Agmark) is a diversified agri-business based in PNG and operating plantations, coastal shipping, hardware, machinery, trucking, logistics, stevedoring, retailing, engineering, and property development and investment. Headquartered in Kokopo, East New Britain Province, it was formed due to the amalgamation of two companies, New Guinea Islands Produce Company and Agmark Pacific, which joined in 2005. NGIP Agmark is PNG’s leading cocoa company and its largest cocoa grower, trader and exporter, selling to markets including Asia, Europe and the US. NGIP Agmark has faced major challenges…
City Pharmacy: RetailOBGplus
The Company City Pharmacy Limited (CPL) Group is a leading retailer in PNG and has a combined retail operation of 64 stores nationwide. It employs 3700 people, of which 97% are Papua New Guinean citizens. CPL’s retail network spans health and beauty chains, supermarkets, hardware stores, coffee shops, a multiplex cinema, a clothing company and duty-free shops. Established in 1986, CPL started as the City Pharmacy chain, offering health care products to population centres across the country. Sales revenue increased from PGK401.11m ($136.9m) to PGK462.08m ($157.7m) in FY 2015. Meanwhile, net profit after tax was PGK7.35m ($2.5m), slightly…
City Pharmacy: RetailOBGplus
The Company City Pharmacy Limited (CPL) Group is a leading retailer in PNG and has a combined retail operation of 64 stores nationwide. It employs 3700 people, of which 97% are Papua New Guinean citizens. CPL’s retail network spans health and beauty chains, supermarkets, hardware stores, coffee shops, a multiplex cinema, a clothing company and duty-free shops. Established in 1986, CPL started as the City Pharmacy chain, offering health care products to population centres across the country. Sales revenue increased from PGK401.11m ($136.9m) to PGK462.08m ($157.7m) in FY 2015. Meanwhile, net profit after tax was PGK7.35m ($2.5m), slightly…
Oil Search: Oil and gasOBGplus
The Company Oil Search (OSH) has been incorporated in Papua New Guinea since 1929 and has a market capitalisation of PGK28bn ($9.6bn). OSH has a 29% interest in the PNG Liquefied Natural Gas (LNG) project, which is operated by ExxonMobil PNG. The PNG LNG project has a capacity of 6.9m tonnes per annum (tpa) that came on-stream in 2014. This project has transformed OSH into a significant oil and gas producer with a long-term, low-cost high-quality LNG revenue stream. The company also holds a significant interest (28%) in the proposed Papua LNG project, operated by Total (40.1%), which has the potential to become PNG’s next major LNG…
Oil Search: Oil and gasOBGplus
The Company Oil Search (OSH) has been incorporated in Papua New Guinea since 1929 and has a market capitalisation of PGK28bn ($9.6bn). OSH has a 29% interest in the PNG Liquefied Natural Gas (LNG) project, which is operated by ExxonMobil PNG. The PNG LNG project has a capacity of 6.9m tonnes per annum (tpa) that came on-stream in 2014. This project has transformed OSH into a significant oil and gas producer with a long-term, low-cost high-quality LNG revenue stream. The company also holds a significant interest (28%) in the proposed Papua LNG project, operated by Total (40.1%), which has the potential to become PNG’s next major LNG…
Kina Securities: Financial servicesOBGplus
The Company Established in 1985, Kina Securities (Kina) is a diversified financial services provider offering financial solutions including savings accounts, small business loans, investments, mortgages, stockbroking and financial advice, investment management and fund administration. Kina saw its net assets grow by 146%, shifting the company into a dynamic, diversified financial services group with scale. The expansion was enhanced by the acquisition of Maybank PNG for PGK350m ($119.5m) in 2015. The acquisition provided Kina with a banking licence, which has had a positive impact in reducing funding costs, enabling access to new markets,…
Credit Corporation: Financial servicesOBGplus
The Company Credit Corporation (CCP) commenced business in 1978 as a general finance company. CCP specialises in providing a range of financial products, including chattel mortgage, lease finance, variable rate contracts and insurance premium funding, and it also offers attractive investment facilities. In addition, CCP manages and owns a portfolio of prime real estate assets. The general slowdown across the region impacted profitability in FY 2015. Core business operating profit from finance, property and dividend revenues totalled PGK75.8m ($25.9m), compared to PGK82.5m ($28.2m) in FY 2014. Group total assets were PGK1.16bn ($396m)…
Newcrest Mining: MiningOBGplus
The Company Newcrest Mining (NCM) is an Australian-based company engaging in the exploration, development, mining and sale of gold and gold-copper concentrate. NCM emerged from the merger of Newmont Australia and BHP Gold in 1990. Newcrest has been listed on the Australian Securities Exchange since 1987 (initially as Newmont Australia). Newcrest also listed on the Port Moresby Stock Exchange following the acquisition of Lihir Gold in 2010. As of 2015 Newcrest was the world’s sixth-largest gold producer. Newcrest has six operational mines, and the gold reserve has an estimated life of around 28 years. The primary gold and copper producer…
Newcrest Mining: MiningOBGplus
The Company Newcrest Mining (NCM) is an Australian-based company engaging in the exploration, development, mining and sale of gold and gold-copper concentrate. NCM emerged from the merger of Newmont Australia and BHP Gold in 1990. Newcrest has been listed on the Australian Securities Exchange since 1987 (initially as Newmont Australia). Newcrest also listed on the Port Moresby Stock Exchange following the acquisition of Lihir Gold in 2010. As of 2015 Newcrest was the world’s sixth-largest gold producer. Newcrest has six operational mines, and the gold reserve has an estimated life of around 28 years. The primary gold and copper producer…
