Start-up costs hit Genting HK in first half

 Genting Dream during final construction at MV Werften in Germany

Genting Dream during final construction at MV Werften in Germany

Genting Hong Kong has attributed a first half 2017 loss of US$203.2 million mainly to the launch of new brands for the cruise division and its new shipyards in Germany. 

Total revenue for the period rose to $532.5 million, up from $435.8 million, with revenue from cruise and cruise-related activities up nearly 23%, to US$417.2 million from US$384 million.

Total operating expenses, excluding depreciation and amortisation, increased more than 38% mainly due to the full six months’ operation of Genting Dream and Crystal Mozart, start-up costs for the new Crystal river vessels and AirCruises operations, and shipbuilding activities at MV Werften.

In an upbeat commentary on the outlook for the company, Genting said it has been encouraged by the market reception to Genting Dream. 

“After a six months startup period, we are pleased that Genting Dream achieved profitability standards comparable to global industry standards in the first seven weeks of the third quarter of this year,” said Tan Sri Lim Kok Thay, chairman and CEO of Genting Hong Kong. 
The company’s latest ship, World Dream, is arriving in November to replace the Genting Dream in the Pearl Delta. 

Genting Dream will then be homeported in Singapore at which time SuperStar Gemini will move from Singapore to her new homeport in Bangkok. 

And with the repositioning of the SuperStar Libra to a homeport in Port Klang, the Star Cruise and Dream Cruise brands will have homeports and destinations covering China, Japan, Singapore, Malaysia, Thailand, Philippines, Indonesia, Myanmar, Cambodia and Vietnam. 

Genting said the demand for cruise ships in China had resulted in more demand than supply, leading to a historic high order book.
“With the unavailability of slots for large cruise ships for nearly the next decade, we have taken the strategic step of buying MV Werften shipyards in order to build ships for our three cruise brands,” says Colin Au, group president of Genting Hong Kong.  

“After delivering our first of four “Rhine Class” river ships this month, we are now focused on building the first 20,000 gross tonne “Endeavor Class” cruise ship by late 2019, and the first 204,000 gross tonne “Global Class” cruise ship by late 2020.”

Steel cutting of the two types of vessels is planned for March next year.