Cruiseship and shipyard group Genting Hong Kong is expecting less red ink in its 2017 results.
The company said the net deficit should be between $240m and $270m, against $537m in 2016.
The improvement is mainly attributable to a one-off gain of $205m from selling stock in US cruise line NCL, as well as in Star Entertainment Group.
It booked an impairment on NCL shares of $305m in 2016, which was not repeated in 2017.
These positives were offset by start-up losses from the Dream Cruises brand.
But it said Dream Cruises was performing well, with improving occupancies and net yields in both the Hong Kong/Guangzhou and Singapore markets.
"However, the arrivals of new and large ships of competitors have caused smaller and older ships to relocate to ports where Star Cruises ships are positioned, creating onward pressures on occupancies and yields," it added.
"This situation is expected to improve as competitors had announced approximately 18% reduction in capacity by the end of this year."
Crystal Cruises faces significant competition in 2017, as competitors have launched new luxury ships, leading to a 16% increase in berth capacity in the luxury sector.
The German yard operation MV Werften recorded a full-year of start-up losses in 2017.
