Genting Bhd posted a 26.3% lower net profit

PETALING JAYA: Genting Bhd posted a 26.3% lower net profit of RM214.50mil for the second quarter ended June 30 against RM291.04mil for the previous corresponding period.

The company told Bursa Malaysia the lower profit was due to the share of loss in jointly-controlled entities and associates of RM30.6mil.

This arose mainly from the share of loss of jointly-controlled entity Genting Singapore Plc (GENS) of RM49.6mil as a result of the reduced value of a property owned by GENS in London, it said.

Its lower profit was also due to impairment loss incurred on the investment in Star Cruises Ltd (amounting to RM30.4mil) and the lower one-off gain of RM1.4mil compared with RM31.4mil net gain arising from the dilution of the company’s shareholding in GENS and Genting Malaysia Bhd (formerly Resorts World Bhd).

Its revenue fell 2.6% to RM2.10bil from RM2.16bil a year ago. Earnings per share (EPS) was at 5.8 sen versus 7.86 sen previously. It has declared a 3 sen dividend.

Genting said its performance in the second half may be impacted by the projected turnaround in the global economy, preparation for the opening of its integrated resort in Singapore and performance of its Meizhou Wan power plant that had been affected by lower-than-expected tariff increase.

Except for its power division, all its divisions – leisure and hospitality; plantation; property; and oil and gas – recorded lower revenue and profit, it said.

The improved profit in the power division was mainly because of higher revenue and lower operating costs incurred by the Meizhou Wan plant, primarily due to lower coal prices.

In the first six months, Genting reported a net profit of RM427.6mil on revenue of RM4.17bil, compared with RM730.5mil and RM4.32bil respectively in the previous corresponding period.

Genting Malaysia, in a separate statement, said its net profit fell 14% to RM330.5mil for the second quarter ended June 30 compared with RM384.3mil in the previous corresponding period as a result of weaker luck factor in the premium players business and lower interest income.

Its revenue dropped 3% to RM1.2bil from RM1.24bil while EPS stood at 5.78 sen against 6.69 sen previously. Genting Malaysia declared an interim dividend of 3 sen.

In the first six months, it posted a net profit of RM605.9mil, down 11% from RM681.6mil in the same period last year. Revenue was higher at RM2.38bil compared with RM2.33bil previously.

“With the forecast turnaround in the global economic outlook, the group is cautiously optimistic of its prospects and expects performance for the rest of the year to be satisfactory,” it said.

27/8/2009