A view of Genting Singapore's Resorts World Sentosa casino and hotel in Singapore in this January 26, 2016 file photo
KUALA LUMPUR: Genting Singapore PLC Group is eyeing the Integrated Resorts (IR) Promotion Bill in Japan under its diversification plan and it has sufficient financial resources and is well placed to bid for this opportunity.
The Genting Group said on Thursday that Genting Singapore was encouraged by the recent passage of the IR Promotion Bill in that country.
“It continues to track the progress of the IR Execution Bill which will pave the way for the formal bidding process for a Japan gaming licence. The Genting Singapore Group has sufficient financial resources and is well placed to bid for this opportunity,” it said.
“Genting Singapore has completed a study of its capital structure, and over the next three years will execute a corporate finance strategy that fulfills its various investment requirements including IR projects, and yet maintaining an efficient capital funding model,” it said.
In its outlook, Genting Group said due to the ongoing uncertainty in the macroeconomic and political environment, coupled with a difficult Asian gaming market, Genting Singapore group continues to adopt a measured approach in the VIP gaming business.
“The impairment of receivables relating to this business segment has reduced since it calibrated its credit policies and remodeled its commission structure. Profit margins have improved in this segment.
“Coupled with the Genting Singapore Group’s marketing focus on growing the regional premium mass business, Genting Singapore is optimistic in delivering sustainable earnings growth.
“However, with the uncertain global political setting and its attendant effect that creates a volatile exchange rate regime, its marketing programs may be negatively impacted,” it said.
The Genting Group comprises Genting Bhd
and its listed subsidiaries Genting Malaysia Bhd, Genting Plantations Bhd and Genting Singapore PLC. The group is involved in leisure and hospitality, oil palm plantations, power generation, oil and gas, property development, life sciences and biotechnology activities.
As for the Malaysian operations, it said the Genting Malaysia Bhd Group remains focused on the development of the Genting Integrated Tourism Plan (GITP), with some offerings opened last year.
Genting Group said GITP's remaining attractions and facilities will be open progressively in 2017.
As for the UK, it said the non-premium players business has continued to perform commendably.
“The Genting Malaysia Group remains committed to further strengthening its position in this segment and improving its business efficiency.
“While the premium players business remains a volatile segment, it has delivered encouraging results on a full year basis following the revised strategies adopted to reposition this part of the business,” it said.
Genting Malaysia will place emphasis on stabilising the operations and growing the business at Resorts World Birmingham as well as the online operation;
In the US, Resorts World New York City (RWNYC) has maintained its position as the market leader in terms of gaming revenue in the Northeast US region despite growing regional competition, and has successfully achieved sustained business growth.
“The Genting Malaysia Group will continue to step up its direct marketing efforts to increase visitations and frequency of play,” it said.
As for the construction of the Indonesian Banten coal fired power plant continues to progress towards its anticipated completion in the first half of 2017.
“ The recognition of construction revenue and its cost for the final 5% of construction in accordance with IC Interpretation 12 will be in the quarter the power plant commences commercial operations.
“Contribution from the Jangi wind farm in Gujarat, India is expected to be lower as a result of the low wind season expected for the first four months of 2017,” it said.
On the Genting CDX Singapore Pte Ltd production oil field in the Chengdaoxi block in China, it expected it to improve compared with 2016 in view of the global recovery in oil prices and better than expected oil production coming from wells drilled in 2016.
“ Work on the preparation of the Plan of Development (POD) continues for the Kasuri block in Indonesia. The approval of the POD is targeted before the end of 2017,” it said.
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