Startups Widen Genting Hong Kong’s Loss

Startup of new brands for the cruise division and MV Werften Shipyard has pushed cruise operator Genting Hong Kong into a loss of USD 203.2 million during the first half of 2017.

The company’s loss has been further widened when compared to last year’s equivalent of USD 53.6 million.

Total comprehensive income attributable to equity owners of the company was USD 166.1 million for the first half of 2017, against a loss of USD 518.1 million for the same period last year.

The results have been announced as the company readies for the steel-cutting ceremony of the 20,000-gross ton Endeavor Class and the 204,000-gross ton Global Class cruise ships in March 2018.

In an interview with World Maritime News earlier this year Colin Au, Group President of Genting Hong Kong, said that the reason behind the launching of the new brand was a belief that Asia was ready for a luxury brand.

As disclosed, the demand for cruise ships for China this decade has resulted in demand outstripping supply, leading to a historically 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,” says Au.

“After delivering our first of four Rhine Class river ships 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,” he added.

Revenue from cruise and cruise-related activities increased 22.7% to USD 471.2 million in 1H2017 year-on-year amid an increase in capacity days mainly due to the inclusion of full six months’ operation of Genting Dream and Crystal Mozart during the first half of 2017.

The company’s revenue from non-cruise activities increased 18.1% to USD 61.3 million year-on-year primarily contributed by revenue from its shipyard activities.

“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. After a 6-month 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,” says Tan Sri Lim Kok Thay, Chairman and Chief Executive of Genting Hong Kong.

The World Dream arriving in November of this year will replace the Genting Dream in the Pearl Delta and Genting Dream will be homeported in Singapore.

With the arrival of the Genting Dream in Singapore, SuperStar Gemini will move from Singapore to its new homeport in Bangkok, Thailand and with the repositioning of the SuperStar Libra to 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, the company said.