Friday, August 26, 2011

Genting 2Q net profit dips 8.92% to RM673.22m

KUALA LUMPUR: GENTING BHD [] net profit for the second quarter ended June 30, 2011 fell 8.92% to RM673.22 million from RM739.17 million a year earlier, while revenue for the quarter rose 9.3% to RM4.46 billion from RM4.09 billion in 2010.

Genting said on Thursday, Aug 25 that its earnings per share was 18.17 sen compared to 20 sen in 2010, while net asset per share was RM4.53.

Genting declared a gross interim dividend of 3.5 sen per share of 10 sen each, to be paid on Oct 27.

For the six months ended June 30, Genting’s net profit jumped 54.2% to RM1.49 billion from RM971.61 million in 2010, on the back of a 29.9% increase in revenue to RM9.35 billion from RM7.19 billion.

Reviewing its performance for the six months ended June 30, Genting said the increase in revenue and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came mainly from the leisure & hospitality, power and PLANTATION [] divisions.

Revenue from the Singapore IR increased compared with revenue in the first half of 2010 due to a first full half year of operations, it said.

The higher revenue contributed to the higher adjusted EBITDA in the current half year, it said.

“The revenue and adjusted EBITDA of the leisure and hospitality business in Malaysia increased in the current half year due to higher hold percentage in the premium players business,” it said.

Genting said the increase in revenue of its power division arose mainly from the Meizhou Wan power plant as a result of higher dispatch in the current half year.

The current half year revenue had also included a compensation from the Fujian provincial government in respect of an increase in tariff rate, it said.

The increase in the adjusted EBITDA was attributable to the higher revenue in the current half year, it said.

Meanwhile, it said the plantation division’s revenue and adjusted EBITDA in the current half year increased due mainly to higher palm products prices and higher FFB production.

It also said there was no revenue from the oil and gas division following the disposal of Genting Oil & Gas (China) Limited (GOGCL) on Dec 10, 2010.

The loss incurred during the current half year arose mainly from general and administrative expenses, it said.

On its prospects, Genting said it was cautious on the outlook of the leisure and hospitality industry as the global economy was showing signs of increasing uncertainties.

It said the power division might be affected by higher coal prices which would however be mitigated by an increase in tariff rate for the Meizhou Wan power plant which has been agreed with the provincial government and expected higher summer generation hours.

Meanwhile, it said the performance of Genting Plantations Bhd was expected to be better than that of the previous financial year.

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