Genting Dream is Dream Cruises' inaugural cruise ship. Photo: Dream Cruises
KUALA LUMPUR: Cruise operator Genting Hong Kong Ltd (Genting HK), which has in the past one year gone on a buying spree to develop its shipbuilding capability, on Monday issued a profit warning for the six-month period ended June 30, 2016,
Genting HK, which is 16.87% owned by Genting Malaysia Bhd
, told the Hong Kong Stock Exchange that the group was expected to record a consolidated net loss ranging from US$60mil to US$75mil (RM243mil to RM304mil) for the half-year, excluding the share of results of Travellers International Hotel Group Inc (operator of Resorts World Manila).
This compared with a net consolidated profit of US$2.1bil (RM8.5bil) (without including Travellers’ contribution) .for the corresponding period last year,
Genting HK, which has operated Star Cruises for over two decades, is expected to announce its unaudited consolidated results for FY15 this month.
Genting HK said the forecast poorer results were due mainly to one-off gains made last year, one-time start-up and marketing costs to launch the new Dream and Crystal cruise brands this year, and higher overall operating and selling, general and administrative expenses, including depreciation and amortisation as a direct result of the integration of the group’s recently acquired businesses.
The gains last year included a one-off accounting gain of US$1.57bil (RM6.36bil) recognised arising from the reclassification of the group’s investment in Norwegian Cruise Line Holdings Ltd from “Interest in associates” to “Available-for-sale investments” in May 2015 as well as a gain of US$599.6mil (RM2.43bil) from selling certain stakes in Norwegian Cruise in the six months to June 30, 2015.
In Monday’s announcement to the stock exchange, Genting HK reminded investors that the company was still in the process of finalising its consolidated results for the period and the above comparison did not take into account the group’s share of results of Travellers, which is listed on the Philippine Stock Exchange and has not announced its results for the half-year to June 30, 2015.
Genting Malaysia Bhd’s (GenM) non-interested shareholders recently extended by a year the board’s mandate for GenM’s indirect unit Resorts World Ltd to dispose its 16.87% stake in Genting HK off-market at a minimum price of 29 US cents per GenHK share.
The group’s original cost of investment in the disposal shares was US$604.1mil, representing an average purchase price of 42 US cents per GenHK share.
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