Startups increase Genting’s losses

2017-08-21T12:27:15+00:00 August 21st, 2017|Finance|

The start up of new cruise brands plus investment in MV Werften Shipyard has resulted in Genting Hong Kong recording an increased loss of $203.2 mill for the first half of 2017, compared to the $53.6 mill reported for 1H16.

Total income attributable to the company’s equity owners was $166.1 mill for 1H17, against a loss of $518.1 mill for the same period last year.

Genting is due to cut the first steel for the 20,000 gt Endeavor Class and the 204,000 gt Global Class cruise ships in March, next year.

Revenue from cruise and cruise-related activities increased 22.7% to $471.2 mill in 1H17 year-on-year due to an increase in capacity days primarily down to the inclusion of full six months’ operation of ‘Genting Dream’ and ‘Crystal Mozart’ during the period.

The company’s revenue from non-cruise activities increased 18.1% to $61.3 mill year-on-year, primarily emanating from its shipyard activities.

“We are pleased with the market reception of the ‘Genting Dream’, the first newbuild ship for the Dream brand of Genting Cruises after nearly 20 years. After a six-month startup period, we are pleased that ‘Genting Dream’ achieved profitability standards comparable to global industry standards in the first seven weeks of the third quarter of this year,” said Tan Sri Lim Kok Thay, Genting Hong Kong’s Chairman and CEO.

The ‘World Dream’ is due to arrive in November of this year and will replace the ‘Genting Dream’ in the Pearl Delta and she will move to Singapore.

With the arrival of the ‘Genting Dream’ in Singapore, ‘SuperStar Gemini’ will move to her new homeport of Bangkok with the repositioning of the ‘SuperStar Libra’ to Port Klang.

Once the repositions have taken place, the Star Cruise and Dream Cruise brands will have homeports and destinations covering the whole of East Asia, including China, Japan, Singapore, Malaysia, Thailand, Philippines, Indonesia, Myanmar, Cambodia and Vietnam, the company claimed.

Genting is due to hold the steel cutting ceremony for the 20,000 gt Endeavor Class and the 204,000 gt Global Class cruise ships in March, next year.