Friday, August 26, 2011

Genting shares decline on cautious outlook, lower 2Q earnings

KUALA LUMPUR: GENTING BHD [] shares declined in early trade on Friday, Aug 26 after the company said was cautious on the outlook of the leisure and hospitality industry as the global economy was showing signs of increasing uncertainties.

At 9.25am, Genting fell 12 sen to RM9.66 with 295,000 shares traded.

Its net profit for the second quarter ended June 30, 2011 fell 8.92% to RM673.22 million from RM739.17 million a year earlier, while revenue for the quarter rose 9.3% to RM4.46 billion from RM4.09 billion in 2010.

Genting said on Thursday, Aug 25 that its earnings per share was 18.17 sen compared to 20 sen in 2010, while net asset per share was RM4.53.

On its prospects, Genting said the power division might be affected by higher coal prices which would however be mitigated by an increase in tariff rate for the Meizhou Wan power plant which has been agreed with the provincial government and expected higher summer generation hours.

Meanwhile, it said the performance of Genting PLANTATION []s Bhd was expected to be better than that of the previous financial year


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