KUALA LUMPUR (May 21): Genting Bhd's (KL:GENTING) net profit for the first quarter jumped more than 20-fold, driven by lower impairment losses and a swing in share of results from joint ventures and associates.

In contrast, its 73.8%-owned subsidiary Genting Malaysia Bhd (KL:GENM) slipped into the red, weighed by pre-opening expenses related to Resorts World New York City’s transition into a full-scale commercial casino.

Genting recorded a net profit of RM101.1 million for the quarter ended March 31, 2026 (1QFY2026), compared with RM4.6 million in 1QFY2025, according to its bourse filing on Thursday. Revenue rose 2% to RM6.66 billion from RM6.51 billion.

Genting’s impairment losses narrowed to RM7.7 million from RM72.3 million a year earlier, while its share of results from joint ventures and associates recorded a profit of RM47.5 million, compared with a loss of RM28.4 million previously.

No dividend was declared for the quarter.

By segment, the group’s leisure and hospitality division posted a 4% year-on-year increase in revenue to RM5.54 billion, driven by stronger gaming performance in Malaysia.

The US and Bahamas operations also improved, supported by consolidation effects from Genting Empire Resorts LLC and contributions from Resorts World Las Vegas, which helped offset disruptions at Resorts World New York City during its transition to a commercial casino, the group said.

The oil palm plantation segment recorded higher revenue but lower Ebitda, mainly due to weaker palm product prices, partially offset by higher fresh fruit bunches production.

The power division recorded higher revenue and Ebitda, driven mainly by stronger generation from the Banten plant in Indonesia, following the absence of outages in 1QFY2026 compared with an unplanned outage in 1QFY2025.

The oil and gas division saw lower revenue and Ebitda, mainly due to weaker crude oil prices and lower production.

Looking ahead, Genting said its leisure and hospitality operations across Malaysia, Singapore, the UK, the US and the Bahamas will continue to be supported by asset enhancements, product refreshes and targeted marketing initiatives aimed at sustaining visitation and improving yield, despite a challenging macroeconomic environment and geopolitical tensions.

For the oil palm plantation segment, prices are expected to remain supported by elevated crude oil and stronger biodiesel demand, although gains may be capped by weaker global demand. Production is expected to improve in 2026, supported by expanded harvesting areas and more mature plantations, though risks remain from fertiliser shortages and potential El Nino conditions.

The group said the power division is expected to remain stable, underpinned by high plant availability and steady generation, particularly from the Banten plant in Indonesia, which continues to operate without disruptions and in line with grid requirements.

Meanwhile, the oil & gas division remains sensitive to crude oil price movements and production levels, with the group continuing to reshape its upstream portfolio to sustain long-term output following the expiry of certain assets, while progressing new projects to support earnings continuity.

Meanwhile, Genting Malaysia slipped into the red in 1QFY2026, posting a net loss of RM3.8 million compared with a net profit of RM72.7 million a year earlier.

The loss was mainly driven by higher operating and payroll-related expenses linked to the transition of Resorts World New York City into a commercial casino, which also caused profit before tax to fall 77% year-on-year to RM43.1 million from RM184 million, the group said in its exchange filing.

This came despite revenue rising 10% to RM2.87 billion from RM2.6 billion, supported by stronger performance across leisure and hospitality businesses in all geographical segments, although partially offset by a stronger ringgit.

Genting Bhd shares closed one sen or 0.4% lower at RM2.35, valuing the group at RM9.11 billion. Genting Malaysia shares fell one sen or 0.5% to RM1.98, giving a market capitalisation of RM11.8 billion.