Cruise ship operator Genting Hong Kong says it expects its loss to narrow significantly in the six months to 30 June 2021, aided by the resumption of some business activities and reduced finance costs.
Issuing a profit warning on Wednesday, the company said it anticipates recording a consolidated operating loss of not more than US$280 million and a consolidated net loss of not more than US$330 million, reduced from US$323 million and US$743 million respectively during the same period in 2020.
The improvement is attributable to the resumption of short cruises out of Taiwan from July 2020 until May 2021 and from Singapore since November 2020, a reduction in expenses, a reduction in finance costs from debt restructuring and a US$25 million share in profit from its stake in Resorts World Manila.
Genting Hong Kong had previously suffered a US$1.72 billion loss in 2020, having announced in August 2020 that it wassuspending all payments to financial creditorsin order to preserve liquidity due to the impact of the COVID-19 pandemic on its businesses.
The company said at the time it needed to use all remaining available cash to maintain critical services for the groups operations.
Negotiations with creditors around debts totaling US$2.6 billion ultimately saw agreements put in place granting Genting Hong Kong new loans and extensions to maturities of its existing debt.