Genting Hong Kong has shared its audited financial results for the year 2020 and has said it expects Covid-19 will continue to have a material impact on the group’s business.
Hong Kong.- Casino cruise ship operator Genting Hong Kong Limited has published its audited 2020 results. Although it remains optimistic about the future, the company has expressed some concern regarding 2021.
In 2020, Genting Hong Kong‘s total revenue fell from US$1.56bn to US$366.8m mainly due to the Covid-19 pandemic and the resulting suspension of cruise operations.
The company reported a net loss of US$1.72bn for 2020, which compares to a loss of US$158.6m in 2019.
As for the second half of 2020, Genting Hong Kong reported that total revenue was down from US$831.8m to US$140.6m. It reported a net loss of US$973m compared to US$102.1m in H2 2019.
The group restarted sailings in 2021 with reduced capacities in Taiwan and Singapore in a fully controlled environment in compliance with relevant local health requirements.
However, it suspended operations in Taiwan until at least June 8 after the country registered a rise in the number of Covid-19 cases. In Singapore, it reduced the capacity of its cruise from 50 per cent to 25 per cent following the announcement of new restrictions from May 16 to June 13.
Although the company remains optimistic that major economic and trade activities, including cruising, will resume as soon as practicable, it believes the Covid-19 pandemic will continue to have a material impact on the Group’s business.
Genting Hong Kong stated: “The company is currently in talks with the relevant authorities in the Asia Pacific region, intending to resume domestic cruise operations in various key markets soon.”
The group is seeking to reengineer its cost structure and efficiency to improve its performance and profitability, and it could implement a holistic consensual solvent restructuring proposal by the first half of 2021.
Last year it had announced it had decided to temporarily suspend all payments to financial creditors.
In May, it reached a recapitalisation proposal with its stakeholders that it said would grant the company an extension of a US$2.6bn debt.
The group said the new recapitalisation proposal would include a reduction in interest margins and the suspension of amortisation payment requirements of US$1.5bn for at least two years.
The package also guarantees a new US$261.5m loan, which includes a small stake in the company, to finish construction of its Crystal Endeavor and Global Dream vessels.