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Genting HK issues profit warning and director resigns for health reasons

Genting HK issues profit warning and director resigns for health reasons
Excluding its share of the results of Norwegian Cruise Line Holdings and Travellers International Hotel Group, Genting Hong Kong expects to post a 2014 net profit of no less than US$235m, down from $483m in 2013.

In a profit warning to the Hong Kong Stock Exchange, Genting HK pinned the decrease on several factors, including a reduction in gain from its decreased stake in NCLH. Genting HK's 2014 interim report put that gain at approximately US$153m, compared to $US452m in 2013.

Other factors include the absence of gain on disposal of certain stakes in NCLH and Travellers as a result of their initial public offerings, completed in 2013 (2013: US$219m), a gain of approximately US$124m from the disposal of certain stakes in NCLH as a result of its issuing new shares for the acquisition of Prestige Cruises in 2014, a fair value gain of approximately US$18m related to the disposal of certain financial assets (2013: impairment and fair value losses of US$94m), a gain of approximately US$14m from the recovery of a loan (2013: impairment loss of US$14m) and reduction of net finance costs of approximately US$16m.

Apart from these factors, Genting HK expects its EBITDA for 2014 to remain stable with that of 2013.

Consolidated results are still being finalized and the net profit comparison doesn't take into account Genting HK's share of results of NCLH and Travellers, both listed on overseas stock exchanges. In issuing its profit warning, the company said its board will consider making a supplemental announcement, if necessary, after NCLH and/or Travellers report their results.

Genting HK expects to announce its 2014 earnings in March.

In other news, Heah Sieu Lay tendered his resignation as an independent non-executive director effective Feb. 3, due to health reasons. Heah has chaired Genting HK's audit committee. In a filing, the company said Heah had no disagreement with the board and there is no matter in relation to his resignation that needs to be brought to shareholders' attention. The board thanked Heah for his contributions.

With Heah's resignation, the number of independent non-executive directors and the number of members of the audit committee fall below the minimum required by the Hong Kong listing rules. Genting HK said it is seeking a suitable candidate or candidates to fill the vacancies as soon as possible and within the three months from the date of Heah's resignation, as required under the listing rules.

The board currently has two executive directors, Tan Sri Lim Kok Thay and Lim Keong Hui; two independent non-executive directors, Alan Howard Smith and Lam Wai Hon; and one non-executive director, Justin Tan Wah Joo.

 

 

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