A week after announcing that it was suspending payments to its financial creditors to preserve liquidity while it seeks to refinance, Genting Hong Kong announced a larger anticipated loss but also provided more details on its situation. The company also pointed to several positive elements as it works to manage the financial challenges brought on by the suspension of cruising due to COVID-19 and its large debt.
While reporting a nearly 70 percent decline in revenues for the first half of 2020 due to the cruising suspension and an eight-fold increase in its operating loss, Genting also sought to provide assurances that it was managing its situation. The total loss for the period, which included large non-cash charges due to a previous refinancing of its cruise ship the Genting Dream, exceeded guidance at a loss of over $742 million. It increased more than thirteen times the total loss the company reported for the first half of 2019.
Genting Hong Kong, which owns cruise lines, a German shipyard, and a few other assets, outlined its challenges as its capital commitments which stand at $1.3 billion mostly due to new cruise ships construction and total loans and borrowings of nearly $3.3 billion. As of the end of June, the company reported it had just under $400 million in cash. However, the company said its directors based on the plans underway believed there was a reasonable prospect that the group will have sufficient working capital and cash flows to meet its financial obligations in the next 12 months.
The company reported that it has already been successful in deferring some obligations while it continues to work with its advisors seeking additional equity or debt financing. They reported that they have received interest to invest in one of their cruise brands from private investors. They reported that they believed there is a reasonable prospect that they would obtain funding before June 30, 2021.
Several short and longer-term efforts have also been taken to improve the company’s financial position. Construction of the company’s second 200,000 gross ton passenger ship, which had begun in Germany, is being deferred with no new timetable. Plans for a second expedition cruise ship for its Crystal Cruises brand have been suspended. They are deferring contracts for the large ship and canceling material contracts on the expedition cruise ship. This is in addition to an unspecified rescheduling of the construction of the first large cruise ship and the first expedition ship, which both were well underway in Germany. The expedition ship had been expected to enter service this summer.
While the company says it is laying up the majority of its cruise ships, they also say that they believe cruise operations will resume in January 2021. One of their cruise ships, the Explorer Dream, has been sailing domestic cruises in Taiwan. They report that the ship started operations at 50 percent of controlled capacity rising to 96 of capacity on the cruise sailing August 23 to 26. Genting also says that it “was informed by the Hainan Commercial Bureau (China) that Dream Cruises is welcomed to commence domestic cruise operation from Sanya. The group is also in the process of negotiation with other regional governments to start domestic cruises.”
With operations at the shipyard in Germany suspended since March, Genting reports a $36 million EBITDA loss at the yard in the first half of 2020. They are currently applying for long-term funding from the Germany government’s Economic Stabilization Fund to provide working capital for the shipyard. They anticipate that the shipyard will resume work in October 2020.
They also implemented immediate measures including cost rationalization initiatives, aggressively reducing non-essential operating expenses, pay freezes and reductions and reducing headcount across the company.
While providing a more balanced look at its financial issues, Genting Hong Kong also held its first meeting with the newly formed creditors committee. The company said that it expects a net loss for the full year and noted that there is no certainty that the current financing efforts can be completed.
Go to Source
A massive fire broke out at the Port of Beirut on Thursday, incinerating a warehouse full of tires and oil within the port’s free zone. The same area was heavily damaged in the ammonium nitrate explosion that leveled the central port area and the adjacent waterfront on August 4. According to Lebanon’s civil defense agency, […]
Over the course of the past five days, the Australian Maritime Safety Authority arranged a medical intervention for an injured aboard a freighter in the Indian Ocean. On Saturday evening, the Spliethoff tweendecker Dolfijngracht called for assistance while under way about 1,000 nauical miles off the coast of Western Australia. A crewmember had sustained serious […]
The National Transportation Safety Board (NTSB) has released a Marine Accident Brief about an accident that occurred on April 15, 2019, involving the towing vessel DeJeanne Maria which struck the end of a submerged dredge pipeline while pushing two spud barges to the Gulf of Mexico. The incident occurred on the Mississippi River in Pass […]
Best known as a leading passenger airport serving Germany’s most populated federal state North Rhine-Westphalia, Düsseldorf has become transformed into a vital distribution point, during the COVID 19 pandemic, for medical equipment and other life-saving goods, mostly from China. Gerton Hulsman, managing director of cargo operations, reports that the handling teams are working hard to […]
DSV Belgium has solid experience in the transport of pharmaceutical products for different customers. With a pharma hub based at Brussels Airport a lot of experience and know-how has been built up over the years. Last weekend, the forwarder handled one hundred million mouth masks, an important milestone for its Belgian organisation that has put […]
The UK government’s new post-Brexit tariff regime will result in both winners and losers. The new regime is set to replace the European Union’s Common External Tariff from the end of the Brexit Transition Period on December 31, 2020. The UK’s commitment to the ongoing Brexit process and ending the UK’s transition from EU membership […]
With close to 100 daily cargo flights operated to a destination network spanning more than 65 cities across six continents, Emirates SkyCargo is delivering essential supplies and commodities to people around the world. The air cargo carrier is currently operating 11 Boeing 777 freighter aircraft, each with a capacity to transport about 100 tonnes of […]
Emirates SkyCargo has expanded its weekly scheduled cargo flight operations to cover 75 destinations across six continents. Through its wider reach, Emirates SkyCargo is able to transport essential commodities and other urgently needed cargo more rapidly across the world, allowing exporters and importers across markets to benefit from direct access to widebody cargo capacity. Some […]
Operators can continue to use pilots and other crew members who have unable to comply with certain training, recent experience, testing, and checking requirements due to the COVID-19 outbreak in support of essential operations. Additionally, this Special Federal Aviation Regulation (SFAR) provides regulatory relief to certain persons and pilot schools unable to meet duration and […]
Global commercial aviation charter company Albion Aviation Group is reporting that it is seeing a considerable uptake in its professional cargo broker training courses from the current global pandemic crisis and surge in charter demand. “We have completed a number webinar courses for a whole of host of companies, looking to manage their own cargo […]
The U-Freight Group (UFL), with its considerable involvement in eCommerce logistics, says that the latest statistics showing that global e-commerce sales hit $25.6 trillion in 2018 are a further vindication of its decision to enter this sector of the international freight market several years ago. The latest available estimates, up 8% from 2017, were recently […]
Astral Aviation has increased its intra-African network with cargo freighters during the pandemic. While there has been a reduction in capacity to, from, and within Africa, which has been caused by a stoppage of passenger flights and limited frequencies on freighter aircraft, Astral Aviation continues to operate cargo freighters from its Nairobi hub to 13 destinations […]
Callan Marine is serving as the prime contractor to the Texas Department of Transportation for a maintenance dredging project located at the Bolivar Ferry Terminal, in Galveston, Texas. Work began in May and is estimated to be complete in late July 2020. The project consists of the removal of 600,000 cubic yards of material and […]
Network Airline Management and TAAG Angola Airlines are pleased to announce the renewal of their long-term freighter aircraft contract by an additional 12 months, sealing an ongoing partnership for the foreseeable future. Operating a regular weekly scheduled service from Liege, Belgium, to the capital of Angola, Luanda, Network Airline Management provides a Boeing 747-400F aircraft […]
Qatar Airways Cargo transported 56 SkyCell containers with vaccines from one of the largest vaccine manufacturers worldwide on its scheduled freighter and belly-hold cargo flights for its customer, CEVA Logistics. The 54-tonne shipment consisting of pneumococcal and varicella vaccines were flown from Brussels to Mumbai via the carrier’s hub in Doha on two separate flights. […]
NOAA Fisheries announced Friday that it will cancel five out of its six large-scale research surveys in Alaskan waters this year due to COVID-19. The canceled surveys include the Aleutian Islands bottom trawl survey, the eastern Bering Sea bottom trawl survey, the northern Bering Sea bottom trawl survey, the Bering Sea pollock acoustics survey, and […]