KUALA LUMPUR (Aug 18): Genting Hong Kong Ltd saw its net loss for the six months ended June 30, 2017 (1HFY17) widen to US$202.18 million, from US$53.64 million last year, due mainly to start-up of new brands for the Cruise Division and MV Werften Shipyard.
Genting Hong Kong explained it is as the start-ups readied itself for steel cutting of the 20,000 gross ton “Endeavor Class” and the 204,000 gross ton “Global Class” cruise ships in March 2018.
For its 6MFY17, Genting Hong Kong’s revenue was up 22.18% to US$532.51 million against US$435.83 million a year ago, due to higher cruise and cruise-related activities. Genting Hong Kong also attributed the higher revenue to increase in Capacity Days.
“The increase in Capacity Days of 39.3% was primarily due to the inclusion of full six months’ operation of Genting Dream and Crystal Mozart in 1H2017, pursuant to its launch in late October 2016 and July 2016 respectively,” Genting Hong Kong said.
Revenue from non-cruise activities from external customers increased 18.1% to US$61.3 million in 1HFY17, compared with US$51.9 million in 1HFY16, primarily contributed by revenue from its shipyard activities, the company said.
“We are pleased with the market reception of the Genting Dream, the first newbuild ship for the Dream brand of Genting Cruises, after nearly 20 years,” said Genting Hong Kong’s chairman and chief executive Tan Sri Lim Kok Thay in a statement today.
“After a 6 months startup period, we are pleased that Genting Dream achieved profitability standards comparable to global industry standards in the first seven weeks of the third quarter of this year,” Lim said.
The World Dream arriving in November 2017, will replace the Genting Dream in the Pearl Delta and Genting Dream will be homeport in Singapore with much faster market acceptance, as travel agents and passengers have experienced the luxury standards of Dream Cruises in the Pearl Delta homeport, the statement said.
Meanwhile, with the arrival of the Genting Dream in Singapore, SuperStar Gemini will move from Singapore to her new homeport in Bangkok, Thailand and with the repositioning of the SuperStar Libra to the homeport in Port Klang, the Star Cruise and Dream Cruise brands will have homeports and destinations that will cover the entire East Asia, Genting Hong Kong added.
“Genting Cruises have the largest passenger capacity, more homeports and destinations than any other cruise brands in Asia,” the company added.
Cruise ships demand and supply growth of about 6% to 7% a year were roughly in balance for almost all of the last 25 years and the demand of cruise ships for China this decade has resulted in more demand than supply, leading to a historic high order book with deliveries announced as far as 2026, nine years from now.
“With the unavailability of slots for large cruise ships for nearly the next decade, we have taken the strategic step of buying MV Werften shipyards, in order to build ships for our three cruise brands,” the company's Group President, Colin Au, said.
“After delivering our first of four “Rhine Class” river ship this month, we are now focused on building the first 20,000 gross ton “Endeavor Class” cruise ship by late 2019 and the first 204,000 gross ton “Global Class” cruise ship by late 2020, with steel cutting of the two types of vessels planned for March next year,” Au added.