Genting Hong Kong expects 2020 operating loss
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 01 April 2020 01 April 2020
Genting Hong Kong, which operates three cruise brands and has the MV Werften shipbuilding group in Germany, expects a full year operating loss on the back of the coronavirus outbreak.
In 2019, the group’s operating loss amounted to $96.2 million, a 32% reduction on the previous year.
Life is starting to return to normal in China, which is an encouraging sign albeit slow improvement in consumer sentiment. “Genting Dream will recommence operation when Singapore authority reopens its cruise terminal.,” the company said in a statement.
“In the interim, the Company will continue to evaluate alternative deployment plans for World Dream while the Star Cruises fleet has suspended operations until the situation in the region improves.”
The company has decided to suspend operations in all three shipyards of MV Werften in Wismar, Rostock and Stralsund, Germany for approximately four weeks commencing from 21 March.
“The magnitude of the impact on the Group’s performance is difficult to quantify as the COVID-19 outbreak continues to spread globally. The Group will continue to monitor its business closely during this temporary disruption and adjust its plans in the best interest of the Group," Genting Hong Kong said.
Higher net yields drove Genting Hong Kong cruise EBITDA higher in 2019
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 01 April 2020 01 April 2020
Genting Hong Kong, the listed parent company of Dream Cruise, Star Cruise and Crystal Cruises plus Mv Werften, doubled its EBITDA n 2019 on stronger net yields and occupancy ratios, the company said in a statement.
Cruise EBITDA rose to $189.8 million in 2019 from $152.4 million in 2018 as net yield per passenger and day rose to $202.4 from $189.0. This was the main driver behind the improvement.
Net cruise costs, including fuel, rose to $166.9 from $162.1
“Overall occupancy grew by 1.9% to 93.3% in 2019 from 91.4% in 2018 with improvements in Gross Yield and Net Yield at 8.8% and 7.1% respectively,” Genting Hong Kong said
Shipyard EBITDA posted a lower loss of $23.3 million in 2019 compared to US$59.6 million in 2018 as a result of higher utilisation of the shipyard.
The group’s cruise segment recorded a 3% increase in revenue to $1,384 million despite a reduction in capacity day of 6%. Occupancy grew by 2% to 93% in 2019 from 91% in 2018 with improvements in both Gross Yield and Net Yield at 9% and 7% respectively.
Construction of Crystal Endeavor and Global Dream achieved 68% and 51% progressive completion respectively as at the end of 2019.
Group EBITDA was $142.5 million, doubled that of $72.3 million in 2018, mainly driven by a combination of improved cruise revenues and higher utilisation of the shipyard.
Group operating loss reduced by 32% to $96.2 million with cruise segment at breakeven. Net loss was 26% lower compared to 2018 at US$158.6 million, the company said.
Carnival plc shares fall 11% on equity, debt issue and dividend suspension news
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 31 March 2020 31 March 2020
Shares in Carnival plc fell more than 10% in London following the news that the group would issue both dent and equity plus suspend dividend payments to combat the negative effects of the coronavirus pandemic.
However, the shares remained well above their 52 week low despite the sharp fall today.
At 14.19 local time, shares in Carnival plc traded 10.9% down since the opening at £8.10 after hitting a session’s low of £7.74. Even given this sharp decline, the shares are off their 52-week low of £6.06.
The FTSE100 index of leading shares on the London market was 0.8% higher at the same.
Trading in New York in the shares of Carnival Corporation would start at 14.30 UK time.
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