KUALA LUMPUR (April 8): Genting Bhd chairman and chief executive Tan Sri Lim Kok Thay said the casino and hotel operator will assess any good investment opportunities that could complement its existing businesses or provide new growth for the group at a time when global economic recovery from the impact of Covid-19 pandemic-driven movement restrictions is expected to continue on vaccination progress.

Lim, however, said downside risks to global economic growth remain, given uncertainties surrounding the evolution of the Covid-19 virus, heightened geopolitical tension, ongoing supply-chain disruptions, escalating energy prices and inflationary risk.

"We are encouraged by the positive reception received to the resumption of our leisure businesses and will work harder to drive more visitations to our leisure properties worldwide.

"Commodity prices, including palm oil, energy and crude oil prices, are expected to remain strong in 2022. We will closely monitor our business environment and take proactive measures to strengthen our businesses," he said in Genting Bhd's 2021 annual report, which was filed with Bursa Malaysia on Thursday (April 7).

According to Genting Bhd's website, the group's diversified businesses include oil palm plantation besides life sciences and biotechnology operations.

Meanwhile, according to Genting Bhd's annual report, it owned a 49.5% stake in Genting Malaysia Bhd and a 55.4% stake in Genting Plantations Bhd as at March 15.

Genting Bhd also owns, among others, a 52.7% stake in Genting Singapore Ltd, the annual report showed.

Lim said that as a group, Genting Bhd always advocates a discipline approach to the management of capital allocation and liquidity.

"This approach and our diversified business strategy have enabled us to weather through the adverse impact of the pandemic.

"The board is mindful of the need to strike a balance between rewarding shareholders through the distribution of dividends amid the current challenging business environment and the retention of resources to support long-term growth strategies," he noted.

According to Genting Bhd's financial summary in the annual report, the group's cumulative net loss widened to RM1.37 billion for the financial year ended Dec 31, 2021 (FY21) from a net loss of RM1.02 billion the year before.

Revenue, however, rose to RM13.53 billion from RM11.56 billion, while retained earnings fell to RM30.66 billion from RM32.26 billion.

Genting Bhd will seek its shareholders' approval in the coming annual general meeting (AGM) for the renewal of the authority to buy back its own shares of an amount which, when aggregated with the existing treasury shares, does not exceed 4% of its prevailing total number of issued shares at any time.

In a shareholder circular filed with Bursa on Thursday, Genting Bhd said that for illustrative purposes, based on its 3.88 billion issued shares and 26.32 million treasury shares as at the latest practicable date (LPD) of March 15, 2022, the maximum number of Genting Bhd shares that can be purchased pursuant to the proposed share buy-back is 128.76 million shares.

The company said its 54th AGM will be held virtually on June 3 at 10am.

"The proposed share buy-back renewal, if implemented, will provide the group with an additional option to utilise its financial resources more efficiently by purchasing Genting shares from the open market to help stabilise supply and demand for Genting shares traded on the Main Market of Bursa and thereby support its fundamental value," Genting Bhd said.

According to the group, the actual number of Genting shares that may be purchased will depend on the availability of funds and relevant cost factors, besides market conditions and sentiments.

"Genting [Bhd] did not purchase any Genting shares during FY21 and up to the LPD. As at the LPD, the company held 26.32 million Genting shares which were retained as treasury shares and none of the purchased treasury shares were resold, cancelled or transferred in the preceding 12 months," the group noted.

On Friday, Genting Bhd settled five sen or 1.09% higher at RM4.65 at the 12.30pm break, bringing the company a market capitalisation of about RM17.9 billion.

The stock was traded at between RM4.62 and RM4.66 so far on Friday.

Meanwhile, Genting Malaysia climbed one sen or 0.34% to RM2.99 after trading at between RM2.96 and RM2.99.

Genting Plantations was also one sen or 0.11% higher at RM8.92 after trading at between RM8.85 and RM9.01.