Genting, which is the parent company of Genting Malaysia Bhd and Genting Plantations Bhd, said business momentum for its Resorts World Sentosa and Resorts World Genting remained healthy, with both seeing increased revenue in the quarter

PETALING JAYA: Genting Bhd posted a stronger net profit of RM456.33mil in its second quarter ended June 30, mainly attributable to firmer topline and a gain on disposal of available-for-sale financial assets.

In a filing with Bursa Malaysia, the group said its bottom line was up by 57.45% year-on-year (y-o-y), compared to RM289.82mil a year earlier. Revenue in the quarter rose 17.22% y-o-y to RM4.95bil.

Genting, which is the parent company of Genting Malaysia Bhd and Genting Plantations Bhd, said business momentum for its Resorts World Sentosa and Resorts World Genting remained healthy, with both seeing increased revenue in the quarter.

“Increased revenue from the plantation division was due to the combination of stronger palm product selling prices, better fresh fruit bunch production and higher sales of biodiesel and refined palm products.

“Revenue for the power division rose mainly on the sale of electricity by the Indonesian Banten coal-fired power plant, following the start of its commercial operations on March 28,” it said.

Higher revenue from the oil and gas division was mainly due to improved average oil prices, it added.

For the first half of financial year 2017, the group’s net profit more than doubled to RM1.05bil, in contrast to RM416.09mil posted in the previous corresponding period.

The surge in bottom line was driven by higher earnings before interest, tax, depreciation and amortisation.

It was also driven by a gain of RM302.2mil recognised from the disposal of Genting Singapore PLC Group’s 50% interest in its associate, Landing Jeju Development Co Ltd, and a gain on disposal of available-for-sale financial assets.

The group’s overall revenue increased by about 8.87% to RM9.72bil for the period.

Genting expects the development of the new Genting Integrated Tourism Plan (GITP) facilities at Resorts World Genting to have a positive impact on Genting Malaysia and the group itself.

Note that Genting Malaysia’s net profit for the second quarter ended June 30 dropped by 59.4% to RM193.42mil, despite an improved topline.

This was due to a foreign exchange translation loss on its US dollar-denominated assets and higher operating costs.

“In Malaysia, the development of the new GITP facilities remains the focus of Genting Malaysia.

“As the group continues to ramp up pre-opening activities in preparation for the progressive rollout of the remaining attractions and facilities, it remains committed to enhancing service delivery, as well as optimising yield management, database marketing efforts and overall operational efficiencies at Resorts World Genting.”

It said the performance of the plantation segment in the second half of 2017 tracked the movements in palm product prices and crop production.

Based on the crop trend observed in the first half of 2017 and barring any weather anomalies, Genting Plantation expects a continued y-o-y recovery in the second half of 2017, particularly from its Indonesian estates.