GGRAsia – Casino cruise op Genting HK to slim 1H loss via biz uptick

Casino cruise op Genting HK to slim 1H loss via biz uptick

Aug 18, 2021 Newsdesk Latest News, Rest of Asia, Singapore, Top of the deck

Casino ship operator Genting Hong Kong Ltd expects to narrow its first-half operating loss and consolidated net loss, judged year-on-year.

It said in a Wednesday filing to the Hong Kong Stock Exchange it anticipated a consolidated operating loss – before finance costs – of not more than US$280 million for the six months to June 30, and a consolidated net loss of not more than US$330 million.

That compared to a consolidated operating loss – before finance costs – of US$323 million and a consolidated net loss of US$743 million for the corresponding period in 2020.

The anticipated decrease in the unaudited consolidated net loss of the group was attributable to a number of factors.

They included: a resumption of cruises by the group’s Explorer Dream vessel in Taiwan waters between July 2020 until early May 2021; and of its World Dream vessel (pictured in a file photo) in Singapore since November 2020.

Other factors in the anticipated improvement were “continued efforts” to control the headcount in terms of employees at the company, and “burn rates” relating to costs for vessels laid up.

There was also a reduction in depreciation expense due to “lower carrying amount of the group’s assets following impairment losses recorded against these assets in 2020”.

Further aspects in the expected narrowing of first-half 2021 loss included a reduction in finance costs from debt restructuring.

Genting Hong Kong said additionally that it had received for the first half, a share of the profit of Travellers International Hotel Group Inc, an associate of the group and that runs the Resorts World Manila casino resort in the Philippine capital, amounting to approximately US$25 million.

Last week, Alliance Global Group Inc, the other partner in the Travellers International entity, reported Travellers International had recorded a second-quarter profit, based on a one-off item.

Genting Hong Kong further stated in its Wednesday filing it had lower impairment losses in respect of the group’s assets in first-half 2021 as compared to the first half of 2020.

In late June, the casino cruise ship operator said it had concluded a series of deals aiming “to provide further capital and stability to the group”.

The arrangements, first announced in May, involved: access to new loan facilities amounting to about US$700 million; amendment and extension of its existing financial indebtedness; and provision of “backstop funding” arrangements to address future liquidity needs.