KUALA LUMPUR: Genting Bhd posted a higher net profit of RM520.52 million in the third quarter ended Sept 30, 2023 (3Q FY2023) from RM128.02 million in 3Q FY2022.
Revenue climbed to RM7.37 billion from RM6.12 billion contributed mainly by the leisure and hospitality division domestically and overseas, it said in a filing with Bursa Malaysia today.
It said Resorts World Sentosa (RWS) continued to be boosted by the sustained recovery of travel and tourism, while Resorts World Genting (RWG) recorded higher revenue mainly due to a higher volume of business.
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On the other hand, the plantation division’s revenue was lower in the quarter due to lower sales volume at downstream manufacturing, partly compensated by the oil palm plantation, which recorded higher revenue on the back of stronger fresh fruit bunches (FFB) production.
It said the downstream manufacturing segment recorded losses, while the oil and gas division registered a lower revenue mainly due to weaker global crude oil prices.
For the nine-month period, the group was back in the black with a net profit of RM779.10 million from a net loss of RM131.19 million on the back of stronger revenue of RM19.85 billion.
Going forward, it said the positive outlook for international tourism is expected to be sustained, although macroeconomic concerns could continue to be a critical factor in the effective recovery of the travel and tourism sectors.
In addition, the regional gaming market is expected to continue recovering as airline capacity and air connectivity in the region improve.
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For Malaysia, it said Genting Malaysia Bhd
(GENM) will continue to strengthen the resilience of the business amid an increasingly challenging operating environment, capitalising on the long-term growth trajectory in travel from the wider region.
In the overseas market, GENM will continue to explore opportunities to reinforce its competitive position.
"Genting Plantations Bhd’s (GENP) prospects for the remaining months of 2023 will track the performance of its mainstay plantation segment, which is in turn dependent principally on the movements in palm products prices and FFB production,” it noted.
GENP anticipates the palm oil price to be under pressure in view of the steadily rising inventory in Malaysia and key importing countries.
Genting said its property segment will continue to offer products which cater to a broader market segment, taking into consideration the prevailing market sentiments, while the downstream manufacturing segment continues to face stiff competition for its refined palm products due to Indonesia's export tax structure.
On the other hand, the segment’s palm-based biodiesel will continue to cater mainly for Malaysian biodiesel mandate as biodiesel export remains challenging.
"The group maintains a positive outlook on its 49 per cent working interest in the petroleum contract for petroleum exploration, development and production in the Chengdaoxi Block in the shallow waters of Bohai Bay, China, arising from anticipated stable production and the favourable outlook for global crude oil prices.
"This is also driven by tightening global supply and demand which is forecast to improve,” it noted. - Bernama
