Genting 1Q net profit falls 51.5% to RM213m

KUALA LUMPUR: Genting Bhd reported a 51.5% decline in net profit of RM213.12 million for the first quarter ended March 31, 2009 from RM439.41 million a year ago, as earnings were impacted by impairment loss from Star Cruises Ltd and weaker plantations performance.

Announcing the results on May 28, it expressed concerns about the remaining period of this year as its prospects may be impacted by the uncertainty from the pace of global economic recovery. Concerns about the spread of the Influenza A (H1N1) virus might also affect consumers’ sentiments and visitations to Genting Highlands Resort, it added.

During the first quarter ended, Genting’s revenue declined 4% to RM2.07 million compared with RM2.16 billion. Earnings per share fell to 5.77 sen from 11.87 sen.

Its leisure and hospitality division recorded marginally lower revenue for 1Q09, despite better performance from the Malaysian-based operations. Genting Highlands Resort posted higher revenue and profit due to increased volume of business. This increase was offset by the lower revenue from the UK casino operations due to the weaker UK economy.

However, the power division saw its revenue rising mainly from the Kuala Langat power plant, which benefited from higher energy charges. This was offset by higher operating cost of its China-based Meizhou Wan plant, arising from higher coal prices.

The plantation division was affected by lower palm products prices and a decrease in fresh fruit bunches production, while the Property Division was impacted by the softer property market conditions. The Oil & Gas Division was affected by lower average prices, resulting in lower revenue and profit.

“The group was also impacted by an impairment loss of RM30.4 million in respect to the Group’s investment in Star Cruises Ltd, no one-off gain and lower share of profit from jointly controlled entities and associates in 1Q09,” it added.

http://www.theedgemalaysia.com/business-news/15218-genting-1q-net-profit-falls-515-to-rm213m.html