Minimum of US$1.5bln loss for 2020: Genting Hong Kong

Genting Hong Kong Ltd- an operator of a casino ship awaits a non-audited loss of not less than US$1.5 billion for the year to 31st of December in comparison to a US$159-million that was lost early last year, according to a Friday filing to the Stock Exchange of Hong Kong. Genting Hong Kong made it known that the increased annual loss would be “majorly attributed to the extended suspension of operations of fleet-wide across the group’s business that are related to cruise” as a result of the pandemic. “Since the beginning of February 2020”, there had been the commencement of such suspension.

The company – part of the agenting group located in Malaysia is in charge of the Dream Cruises, Star Cruises brand, and Crystal Cruise which are home to popular casinos that allow people to skirt local gambling laws as there is nothing stopping people from gambling while at sea. As such, there are xoslot and classic slots, roulette, blackjack, Sic Bo, Craps, poker, and baccarat games available at sea making this a popular attraction for clientele.

Genting also has an investment in the Resorts World Manila Casino resort located in the country. The filings on Friday pointed out that from the previous years’ March to October, operations have been suspended at the German MV Werften shipyards controlled to the group.

The several stops in business during covid-19 resulted in “loss of impairment which was on record on some intangible assets, plant and machinery, property, including other assets and loss on interest disposal in some subsidiaries in which non-core assets are owned”, according to the company in its statement. Last year November, the company had decided to sell a 50% stake in Genting Macau Holdings Ltd subsidiary taking part in the hotel project development in Macau. Genting Hong Kong’s consolidated operating loss for the previous year would be nothing less than US$600 million compared to 2019’s US$96 million.

Since November, permission has been given to Dream Cruises’ World Dream Vessel for running ‘domestic cruises’ in Singapore, contributing positively to the company’s earnings before interest, depreciation of tax, and amortization, according to the filing.

Also, the filing made it known that announcements have been made by the company that Crystal Cruises would operate what it termed “Escaped of Bahamas near-to-home” from Nassau and Bimini in the Bahamas starting in July of 2021.

The group stated this would mean its Crystal Serenity would be “the number one ocean ship that would sail from the US since there has been a voluntary stop in activities by the cruise industry about 12 months ago”. With Crystal Cruise’s resumption, Genting cruise lines will see 41% of all its ship operating (depending on the sum of lower berths)