Summit Ascent Holdings has issued a second statement about the Tigre de Cristal resort based in Vladivostok, Russia as the war in Ukraine unfolds. The Hong Kong-listed company said that it would now postpone Phase II of its development efforts in the property. The company revealed a strong increase in its financial results with a 26% year-over-year growth in revenue to $34 million.
Phase Two Will Have to Wait Before Launching
Just earlier this month, Summit Ascent Holdings hoped that Tigre De Cristal, based in Primorye Economic Zone, Vladivostok, could go according to plan, but the growing tension between NATO, EU members on the one side, and Russia on the other has put the company’s immediate plans on hold. Summit Ascent has confirmed that much of its investment in Tigre de Cristal has been self-sustainable:
“The Group’s integrated resort Tigre de Cristal is operating in the Russian Far East and has been self-sustaining without any bank borrowings.”
Nevertheless, the group wants to show caution as an increasingly volatile business environment may impinge on future results and constrain growth. There are numerous issues that Summit Ascent may face if it decides to jump the gun and go ahead with the development of Phase II of Tigre de Cristal. Some of them include dividend repatriation and even loan repayment.
The Situation Will Be Assessed As It Evolves
Similar to its previous statement, the company said that it would continue to assess the situation and see how the market responds and changes to the short-term and long-term challenges brought on by the Russian war in Ukraine. Tigre de Cristal is not the only property that has been put on hold, though.
NagaCorp acted swiftly to discontinue its own plans for the Naga Vladivostok casino resort, which has been put on hold until further notice. The company cited the Russian invasion of Ukraine as the reason why it decided not to pursue any action in the country’s far east.
Summit Ascent looks eager to restart operations in the region, but that would be solely predicated on how markets respond to the ongoing crisis in Ukraine.