Mainboard-listed Genting Hong Kong issued a profit warning yesterday on its earnings for the 12 months to Dec 31.

The cruise ship operator told the Singapore Exchange that it expects to record a consolidated net loss of US$500 million (S$710.5 million) to US$550 million for the period, excluding the share of results of Travellers International Hotel Group.

This would be a stark reversal from the previous year's consolidated net profit of US$2.1 billion.

It blamed factors such as the absence of a one-off accounting gain of US$1.57 billion recognised from the reclassification of the group's investment in Norwegian Cruise Line Holdings (NCLH) in 2015 and a total gain of US$658.6 million from the disposal of certain stakes the same year.

The group also logged an impairment loss of about US$300 million on its available-for-sale investment of its interest in NCLH ordinary shares, caused by a decline in its fair value late last year.

Other factors included one-time start-up and marketing costs for the launch of the Dream and Crystal cruise brands and products last year; additional depreciation and amortisation, mainly from its new cruise ships and newly acquired German shipyards; and costs related to the start-up, reorganisation and acquisition of its shipyard operations and new building activities.

Despite the decline, the company expects to record an improvement on its underlying cruise business, excluding the one-time start-up costs of its new brands' cruise ships.

It said it is still finalising its consolidated results for the year, which will likely be announced in March.

Genting Hong Kong shares finished half a US cent, or 1.7 per cent, higher yesterday at 30.5 US cents before the announcement was made.