Moody’s Investors Service says cash flow will easily cover projected capital spending.<\/p>\n\n\n\n\n\n\n\n
Singapore.-\u00a0Moody’s Investors Service <\/strong>expects\u00a0Genting Singapore<\/strong>\u00a0to generate SG$1.4bn (US$1.0bn) in operating cash flow up to December 2024. Moody’s says this coupled with the company’s cash balance, will aptly cover\u00a0projected capital spending of approximately SG$1.0bn<\/strong>, an estimated dividend payout of around SG$0.6bn and minimal debt repayment.<\/p>\n\n\n\n According to analysts, as of June 30, Genting Singapore had a “strong net cash position” with a “cash balance of around SG$3.4bn, compared with lease liabilities of just SG$3m.\u201d It said Genting Singapore’s A3 issuer rating reflects\u00a0the company’s 100 per cent ownership of Resorts World at Sentosa, which operates Resorts World Sentosa (RWS), and that Genting Singapore expects to retain full access to the resort’s cash flow.<\/p>\n\n\n\n Genting Singapore is committed to a SG$4.5bn phased expansion of RWS, often referred to as “RWS 2.0.” Moody’s said the firm possesses ample liquidity to fund the expansion without incurring additional debt.<\/p>\n\n\n\n It forecasts that\u00a0Genting Singapore’s earnings before interest, taxation, depreciation, and amortization (EBITDA) will reach approximately SG$1.1bn in 2023 and 2024. This upswing is attributed to the ongoing recovery in Singapore’s tourism sector. Singapore recorded 9.01 million visitors from January to\u00a0August, a 204.5 per cent year-on-year increase. It received 1.4 million international visitors in July 2023, representing 79 per cent of the same month in 2019.<\/p>\n\n\n\n Nevertheless, Moody’s cautions that Genting Singapore’s earnings are not expected to return to 2019 levels in the short term due to challenges such as high utility and labour costs and increased casino tax rates since March 2022. <\/p>\n\n\n\n