Genting Hong Kong To Reduce Loss over the 2nd Half of 2021
Genting Hong Kong Ltd said in a filing to the Hong Kong Stock Exchange that it expects to further reduce its year-on-year first-half net loss. The company anticipates a consolidated net loss of not more than US$330 million before finance costs.
That would be way less than the consolidated net loss in a similar period in 2020, which was at US$743 million before finance costs.
The group attributed this decrease to several factors like the resumption of cruise operations by the World Dream Vessel from December 2020 in Singapore and the Explorer Dream vessel in Taiwan waters until early May 2021.
They also added that their efforts to control the number of employees at the company and reduce “burn rates” associated with costs for laid-up vessels helped. Their depreciation expenses were also reduced because of the “lower carrying amount of the group’s assets” due to impairment losses against these assets in 2020.
Furthermore, due to debt restructuring from late last year, the company has enjoyed a drop in finance costs.
Genting Hong Kong Ltd mentioned that it had also received a share of Travellers’ International Hotel Group Inc’s profits which was about US$25million.
The group is an associate of GHK and operates the Resorts World Manila casino resort in the Philippines. Travellers' International Hotel Group Inc already recorded a second-quarter profit in 2021, based solely on one item.
In late June 2021, the World Dream vessel operator stated that it had concluded a series of deals aimed at providing more capital and stability to the group. These deals involved access to new loan facilities adding up to US$700 million.
They also covered the amendment and extension of the group’s existing financial indebtedness, including providing “backstop funding” to address its future liquidity needs.