Written by Chong Jin Hun
Wednesday, 25 November 2009 20:10
KUALA LUMPUR : GENTING BHD [] leapt into a net profit of RM371.33 million in the third quarter ended Sept 30, 2009 (3Q2009) from a net loss of RM40.38 million a year earlier. Revenue rose 1.3% to RM2.4 billion from RM2.37 billion, Bursa was told today.
Its cumulative nine-month net profit climbed 15.8% to RM798.94 million from RM690.08 million, while revenue was down 1.8 % to RM6.57 billion from RM6.69 billion.
Genting said its 3Q net profit was helped by higher gains from Resorts World Genting in Malaysia, and the group's casino operations in the UK. Its power unit also registered more profit as turnover rose amid lower operating cost at its Meizhou Wan electricity-generation plant in China.
"The lower profit from the other business divisions is due primarily to lower revenue," Genting said. During the quarter, the group's leisure & hospitality, and power divisions recorded higher revenue, while other units registered lower turnovers.
Revenue from its oil palm PLANTATION [] operations fell mainly due to lower prices amid less output of the commodity, while the real estate division was affected by a slower property market. The poorer performance at its oil & gas division was due to lower crude oil prices.
Looking ahead, Genting said it would incur significant pre-opening costs at its Resorts World Sentosa in Singapore as the conglomerate accelerated its human resource recruitment, training, besides sales and marketing programmes for the integrated resort.
"The performance of Meizhou Wan power plant could continue to be affected by lower than expected tariff increases, which are being negotiated, and a slight uptrend in coal prices," Genting said.