Genting Hong Kong warns shareholders of $1.5bn net loss for 2020

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Genting Hong Kong warns shareholders of $1.5bn net loss for 2020

Casino cruise ship operator Genting Hong Kong Limited has informed shareholders the group is expecting a consolidated operating loss of $600m and a consolidated net loss of no less than $1.5bn for the year ended 31 December 2020.

The figures are based on the preliminary review of its unaudited consolidated management accounts, and show a decline compared to the same period in 2019 when operating loss was $96m and net loss was $159m.

The loss is mainly attributable to the prolonged suspension of operations across the group’s cruise and cruise-related businesses since February 2020, including Dream Cruises, Crystal Cruises and Star Cruises.

Shipbuilding operations in a shipyard in Germany were also suspended from March to October 2020.

The group negotiated with various governments to start local cruises: Taiwan was one of the earlier countries to reopen cruise travel and since 26 July, the group was given the approval to operate two, three and four-night cruises from Keelung to Kinmen, Penghu and Matsu islands.

Domestic cruises in Singapore have been operating since November. In July 2021, the group plans to launch a cruise from Nassau and Bimini.

Despite the resumption of some of the operations, the group expects that the Covid-19 pandemic will continue to impact the business and stated it has no way to predict the effect it’ll have on the group’s financial performance.