KUALA LUMPUR, Aug 27 — Genting Bhd’s net loss narrowed to RM563.53 million in the second quarter ended June 30, 2021 (Q2 FY2021) from a net loss of RM786.05 million.
Genting told the stock exchange the lower net loss in Q2 FY2021 was due to higher adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of RM958.9 million, compared with an adjusted loss before interest, tax, depreciation, and amortisation (EBITDA) of RM578.7 million.
Revenue during the quarter under review rose more than two-fold to RM2.94 billion from RM1.11 billion previously, mainly contributed by the leisure and hospitality segment, it said.
For its plantation division, Genting said the revenue increased in Q2 mainly due to higher palm products prices and higher fresh fruit bunches (FFB) production, spurred by the growth in Indonesia from increased harvesting areas and higher yields.
“Revenue and EBITDA from the power division increased mainly due to higher net generation from the Indonesian Banten plant, while the oil and gas division recorded higher revenue and EBITDA mainly due to higher average oil prices in the second quarter,” it said.
For the first half of the financial year ended June 30, 2021 (H1 FY2021), Genting’s net loss reduced to RM895.29 million from RM918.37 million in H1 FY2020, despite a lower revenue of RM5.19 billion versus RM5.22 billion previously.
“The decline (of the revenue for H1 FY2021) came primarily from the leisure and hospitality segment, which was partially offset by improved performance in the plantations segment.
“Group EBITDA, however, improved more than two-fold to RM1.5 billion in H1 FY2021 from RM630.0 million in H1 FY2020, mainly due to improved performance from the leisure and hospitality businesses in Singapore, the United States, and the Bahamas,” it said.
Moving forward, the group said global growth challenges may persist given the ongoing concerns surrounding the evolving Covid-19 situation worldwide, and potential risks of heightened financial market volatility.
“In Malaysia, economic recovery is expected to be delayed by the earlier re-imposition of containment measures nationwide and increased spread of Covid-19. While the regional gaming market is expected to remain challenging in the short-term, as the recent Covid-19 developments will continue to pose uncertainties to the outlook for the tourism, leisure, and hospitality sectors,” it said. — Bernama
