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Genting falls to $500m loss for 2016

Hong Kong cruiseship and yard giant blames depreciation and impairments.

Cruiseship and shipyard group Genting Hong Kong has fallen into the red in 2016.

The net loss was $504.23m, compared to a profit of $2.1bn in 2015 as depreciation and impairments rose.

Revenue grew to $1.01bn from $689.9m for the owner of Star Cruises, Dream Cruises, Crystal Cruises and German shipyards Lloyd Werft and MV Werften, the former Nordic Yards.

It blamed the absence of a one-off gain of $1.56bn in 2015 from reclassifying its investment in Norwegian Cruise Line Holdings (NCLH), as well as a gain of $658.6m from selling stock in NCLH.

It also cited an impairment loss of $305m in 2016 on NCLH shares classed as available for sale, while depreciation was up at $259m.

Passenger ticket revenue and onboard revenue increased significantly in 2016 due to the full year contribution from Crystal Cruises, it added.

However, one-time start-up and marketing costs for the launch of new Dream and Crystal Cruises’ brands and products in 2016 resulted in an increase in the cruise division's loss.

Revenue from cruise and cruise-related activities increased 39.1% to $908.1m as capacity increased.

Non-cruise revenue rose 192.5% to $108.6m after it added the yards in Germany.

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