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Genting Bhd incurs RM130.75 million net loss for third quarter

27 Nov 2020 / 00:46 H.

PETALING JAYA: Genting Bhd saw a net loss of RM130.75 million for the third quarter ended Sept 30, against a net profit of RM305.68 million previously mainly due to the lower adjusted earnings before tax in the three months under review.

Revenue declined to RM3.3 billion, from RM5.3 billion in the year before, mainly due to its leisure & hospitality division.

In its Bursa filing, Genting said Resorts World Sentosa continues to experience weak demand with decline in its revenue and adjusted earnings before interest, tax, depreciation and amortisation (Ebitda).

Resorts World Genting saw lower revenue mainly due to lower business volume from the general market and non-gaming segments as the resort continues to operate with reduced capacity.

Consequently, a lower adjusted Ebitda was recorded due to the lower revenue which was partially mitigated by a reduction in payroll and related costs as a result of lower headcount and lower operating expenses.

Its leisure and hospitality business in the United Kingdom and Egypt saw an adjusted loss before interest, tax, depreciation and amortisation (Lbitda) was recorded due to the lower revenue and higher debts provision which were partially mitigated by lower payroll costs.

As for the leisure and hospitality business in the United States and the Bahamas, an adjusted Lbitda was recorded due to lower revenue which was partially mitigated by lower payroll costs and operating expenses of Resorts World Casino New York City.

Meanwhile, Genting Malaysia Bhd’s leisure and hospitality business worldwide reported a lower cost structure in the current quarter as a result of the recalibration of its operating structure and rightsizing of its workforce in response to the unprecedented disruptions to its operations amid the Covid-19 pandemic.

The plantation division’s revenue and adjusted Ebitda increased in the quarter mainly due to stronger palm products prices and higher demand for its refined palm products.

Revenue and adjusted Ebitda of the power division were impacted by the unscheduled closure of the Banten Plant during the third quarter, resulting in lower net generation from the Banten Plant. The revenue and adjusted Ebitda of the property division decreased in the third quarter mainly due to lower sales from Genting Plantations Bhd’s properties.

Lower revenue and adjusted Ebitda from the oil & gas division were mainly due to lower average oil prices in the quarter.

Over the nine-month period, the group incurred a net loss of RM1.05 billion from a net profit of RM1.5 billion previously whie revenue was nearly halved to RM8.52 billion, from RM16.3 billion a year before.

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