Genting HK forecasts major H1 operating losses
Genting Hong Kong Ltd. (Genting) warned in a Friday filing that it forecast an operating loss for the first half of 2020 of up to US$300 million, expecting to record an unaudited consolidated net loss of at least US$600 million for the six months ended 30 June, compared to a $56.5 million loss for the same period last year.
In addition, deliveries of Crystal Endeavor and Global Dream, currently under construction at the Genting-owned MV Werften, now face delays as a result.
The Hong Kong-listed investor and operator of casino cruise ships and shipyards said their lacklustre performance can be attributed to wider losses as a result of suspended operations during lockdowns relating to COVID-19.
Apart from Superstar Aquarius, Superstar Gemini and Explorer Dream, which began sailing from Taiwan 26 July, the rest of Genting’s ships are laid up.
Dream Cruises’ Global Dream is one of the largest cruise ships in the world and will be able to accommodate up to 9,500 passengers and 2,200 crew members, more people than any other cruise vessel.
Genting has made efforts to reduce costs, including suspending capital expenditures unrelated to ship, employee and passenger health and safety, as well as trimming shoreside operating expenses. The company also secured a deferral of up to 12 months for debt principal repayments amounting to approximately US$220 million, and sought funding from Germany’s Economic Stabilisation Fund to resume construction work at the shipyards.
Genting didn’t specify new delivery dates but expects to announce results for the period ended 30 June by the end of this month.
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