Genting reports loss – to be hit by COVID-19

2020-04-14T08:34:54+00:00 April 14th, 2020|Finance|

Genting Hong Kong has reported a 2019 net loss of $158.6 mill, or $1.79 per share, on revenues of $1.5 bill, compared to a net loss of $213.3 mill, or $2.49 per share, on revenues of $1.6 bill for the previous year.

Cruise segment revenues were $1.4 bill last year, a slight improvement from $1.3 bill recorded in 2018, despite a 6% reduction in a capacity days. The occupancy load factor was 93%, compared to 91% for 2018.

Cruise EBITDA was $189.8 mill for 2019, compared to $152.4 mill in 2018, while overall group EBITDA was $142.5 mill, up from $72.3 mill for 2018.

This increase was driven by a combination of improved cruise revenues and higher shipyard utilisation, Genting said.

The overall revenue reduction was said to be due to a lower third party revenue recognised in the shipyard segment, which was offset by an improved net yield.

As for the COVID-19 outbreak, the group suspended most of its of its cruise operations in 1Q20, as well as operations at all three of its MV Werften shipyards, where work has been suspended for four weeks from 21st March.

Cost control measures include office management accepting a temporary 20% – 50% salary reductions, on board crews have been reduced, and there is a freeze on recruitment across the group.

However, Genting admitted that it anticipated posting an operating loss for 2020.

Genting also said that it will resume operations when the Singapore Port Authority reopens the cruise terminal.

Meanwhile, the company will also continue to evaluate alternative deployment plans for the ‘World Dream’, which is currently lying in Rotterdam having drydocked at Damen, while Star Cruises’ fleet has suspended operations until the Asian situation improves.