Genting Bhd 3Q earnings dn 22% to RM597m on-yr

KUALA LUMPUR (Nov 24): GENTING BHD []’s earnings fell 22% to RM597.19 million in the third quarter ended Sept 30, 2011 (3QFY11) from RM765.92 million a year ago in the absence of one-off items including a net gains of RM413.60 million recorded a year ago.

It said on Thursday, pretax profit for 3QFY11 included gain on disposal of available-for-sale financial assets of RM77.6 million.

However, it was impacted by net impairment loss of RM25.10 million mainly from the group’s investments in certain jointly controlled entities and associate. There was also a net fair value loss of RM16.4 million on financial assets at fair value through profit or loss.

(In 3Q10, the pre-tax profit had then included one-off items comprising a net gain of RM413.6 million arising from the entitlement to the deferred consideration in relation to the sale of the whole of the issued share capital of Cairns Ltd by Laila Ltd, an indirect 95% owned subsidiary, to BP Global Investments Ltd; and also net impairment loss of RM250.6 million.)

Genting Bhd’s revenue rose 31.6% to RM5.143 billion in 3QFY11 from RM3.909 billion while earnings per share were 16.16 sen compared with 20.72 sen.

“The increase in the revenue of the leisure & hospitality division was contributed by all of the group’s leisure and hospitality businesses in Singapore, Malaysia, the UK and the US,” it said.

On Resorts World Sentosa (RWS), it said there was an increased due to the gaming and non-gaming segments.

The power division’s revenue increased mainly due to better dispatch and a higher 2011 tariff rate in the Meizhou Wan power plant and higher energy charge in the Kuala Langat power plant. However, the EBITDA of this division is lower than that of the previous year due to higher coal prices.

The increase in the PLANTATION [] division’s revenue and EBITDA in 3QFY11 was principally due to higher palm products prices and higher FFB production.

The share of results in jointly controlled entities and associates increased in 3QFY11, mainly due to the higher profits generated by the Indian power plants.

For the nine-month period, its earnings increased by 20.5% to RM2.094 billion from RM1.737 billion in the previous corresponding period. Its revenue rose by a stronger pace of 30.4% to RM14.495 billion from RM11.108 billion a year ago.

Genting Bhd said the group’s profit before tax for the nine-months included gain on disposal of available-for-sale financial assets of RM221.6 million; property related termination costs of RM39.4 million; and net impairment loss of RM29.0 million mainly from the group’s investments in certain jointly controlled entities and associate.

It added that profit before tax included net impairment loss of RM1.554 billion; net gain on dilution of RM436.3 million in the company’s shareholding in Genting Singapore plc when the convertible bonds were fully converted into new Getting Singapore shares in the first half of 2010 and net gain of RM413.6 million arising from the entitlement to the deferred consideration.