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Genting Hong Kong warns on $1.5bn loss in 2020

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Genting Hong Kong became the latest public cruise company likely to chalk up more than a billion dollars in losses during 2020.

The group signaled its expectation of losing at least US$600m in fourth quarter 2020 and at least $1.5bn in the full year.

This compares to a $159m loss in 2019.

In the first half of 2020, the impact of the coronavirus pandemic pushed Genting HK to a $742.6m loss.

The past year loss results from suspended operations for Dream Cruises, Crystal Cruises and Star Cruise, as well as the suspension of shipbuilding operations at MV Werften’s German yards between March and October. This led to impairment losses for certain intangible assets, property, plant and equipment and other assets and loss on disposal of interest in certain subsidiaries which owned non-core assets.

Restarts recapped

Starting last July, Dream Cruises' Explorer Dream began operating two-, three- and four-night Taiwan island-hopping cruises departing from Keelung to Kinmen, Penghu and Matsu islands, making Taiwan one of the earlier markets to reopen cruise travel. Dream Cruises’ World Dream has been sailing domestic cruises from Singapore since November, with a positive EBITDA contribution.

Crystal Cruises is scheduled to resume sailing with Crystal Serenity from the Bahamas in July. 

41% of lower berths in operation, more than any other line

With that, Genting Cruise Lines will have 41% of its fleet in operation, based on lower berths. The company said this is the highest proportion of all cruise companies in the world. 

Plus, Star Cruises from Malaysia

On top of that, Star Cruises just announced plans to begin sailing from Malaysia's Penang on May 13.

Genting HK expects to release final 2020 results before the end of March.

For comparison

At Norwegian Cruise Line Holdings, 2020 adjusted net loss was $2.2bn, and the company lost $683.8m in the fourth quarter.

Royal Caribbean Group's full-year adjusted net loss was $3.9bn, of which $1.1bn came in Q4.

And Carnival Corp. & plc incurred a $10.2bn net loss last year, $1.9bn in Q4.

 

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