Genting Hong Kong records $200m loss as investment increases

Genting Hong Kong records $200m loss as investment increases Genting Dream was completed this year

Genting Hong Kong has reported a total comprehensive income for the first half 2017 period of $165 million, with a loss for the period of $203.2 million.

The losses were mainly due to the start-up of new brands for the cruise division and investment at the MV Werften Shipyard as it readies itself for steel cutting of the 20,000 gross ton Endeavour Class and the 204,000 gross ton Global Class cruise ships in March of 2018.

“We are pleased with the market reception of the Genting Dream, the first new build ship for the Dream brand of Genting Cruises after nearly 20 years. 

“After a six months start-up 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,” said Tan Sri Lim Kok Thay, chairman, Genting Hong Kong.

The World Dream arriving November of this year 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.

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, including China, Japan, Singapore, Malaysia, Thailand, Philippines, Indonesia, Myanmar, Cambodia and Vietnam.

Genting Cruises have the largest passenger capacity, more homeports and destinations than any other cruise brands in Asia.

ADVERTISEMENT

Cruise ships demand and supply growth of about six to seven per cent 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,” said Colin Au, group president of Genting Hong Kong.

“After delivering our first of four Rhine Class river ships this month, we are now focused on building the first 20,000 gross ton Endeavour 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,” he added.

Genting is a leading corporation principally engaged in the business of cruise and cruise related operations along with leisure, entertainment and hospitality activities.