GENTING ... Jun 09

GENTING NET PROFIT DECLINES 51% FOR 1QE MAR 2009

GENTING reported a 51.5% decline in Net Profit to RM213.1m for 1QE Mar 31, 2009 from RM439.4m a year ago. Earnings were impacted by Impairment Loss from STAR CRUISES ltd and weaker plantations performance.

In the Company's results announcements on May 28, 2009, the Company expressed concerns about the remaining period of this year as its prospects may be impacted by the uncertainty from the pace of global economic recovery. Concerns about the spread of the Influenza A (H1N1) virus (Swine Flu) might also affect consumers' sentiments and visitations to Genting Highlands Resort, it added.

For 1QE Mar 2009, GENTING's Revenue declined 4% to RM2.07 bil compared with RM2.16 bil. EPS fell to 5.77 sen from 11.87 sen.

LEISURE DIVISION RECORDS LOWER REVENUE
The Group's eisure and hospitality division recorded marginally lower revenue for 1QE Mar 2009, despite better performance from the Malaysian-based operations. Genting Highlands Resort posted higher revenue and profit due to increased volume of business. This increase was offset by the lower revenue from the UK casino operations due to the weaker UK economy.

POWER DIVISION
The power division saw its revenue rising mainly from the Kuala Langat power plant, which benefited from higher energy charges. This was offset by higher operating cost of its China-based Meizhou Wan plant, arising from higher coal prices.

PLANTATION DIVISION
The plantation division was affected by lower palm products prices and a decrease in fresh fruit bunches production.

PROPERTY DIVISION
The Property Division was impacted by the softer property market conditions.

OIL & GAS DIVISION
The Oil & Gas Division was affected by lower average prices, resulting in lower revenue and profit.

IMPAIRMENT LOSS TO INVESTMENTS
" .... The Group was also impacted by an impairment loss of RM30.4m in respect to the Group's investment in STAR CRUISES ltd, no one-off gains and lower share of profit from jointly controlled entities and associates in 1QE Dec 2009 ...." it added.