Genting triples earnings in Q4

PETALING JAYA: Genting Bhd's net profit for the fourth quarter ended Dec 31, 2016 more than tripled to RM1.14 billion from RM338.95 million a year ago due to a one-off gain of RM1.3 billion from the disposal of its investment in Genting Hong Kong Limited.
In a filing with Bursa Malaysia yesterday, it said that most of its divisions reported higher earnings before interest, tax, depreciation and amortisation (Ebitda), except for the power division, which suffered a loss due to lower construction profit recognised and higher operating expenses incurred on the Banten Plant in Indonesia.
Revenue for the quarter fell 3.38% to RM4.75 billion from RM4.92 billion a year ago due to higher revenue from most of its divisions.
Resorts World Sentosa in Singapore posted higher revenue due to higher gaming revenue as a result of higher rolling win percentage in the premium player business and the revised strategy to focus on better margin business.
Resorts World Genting in Malaysia also posted higher revenue, due to higher business volume from the mid to premium segment.
The plantation business posted higher revenue due to stronger palm product selling prices in Malaysia and Indonesia, and higher FFB production from Indonesia while the oil and gas division's revenue improved due to higher average oil prices.
Meanwhile, the casino business in the UK, leisure and hospitality business in the US and Bahamas, and the power division reported lower revenues.
For the financial year ended Dec 31, 2016, net profit rose 54.64% to RM2.15 billion from RM1.39 billion a year ago while revenue for the year rose 1.47% to RM18.37 billion from RM18.10 billion a year ago.
The group recommended a final single-tier dividend of 6 sen per share for FY16, subject to shareholders' approval. It also declared a special single-tier dividend of 6.5 sen per share payable on March 30, 2017.
For FY17, the group said it will remain focused on the development of the Genting Integrated Tourism Plan in Malaysia, with the remaining attractions and facilities to be opened progressively this year.
In Singapore, it is optimistic in delivering sustainable earnings growth but is cautious of the uncertain global political setting, which could create a volatile exchange rate regime. Genting Singapore PLC is also tracking the progress of the IR Execution Bill which will pave the way for the formal bidding process for a Japan gaming licence.
Meanwhile, the plantation segment will largely be driven by the direction of palm oil prices and FFB production. The addition of newly-mature areas and the progress of existing mature areas into higher yielding brackets in Indonesia will remain the major growth driver.