Viking Line, the listed Finnish cruise ferry company, has reported a small rise in second quarter net profit on higher volumes, but warns that competition remains tough.
Group net profit rose to €2.9 million from €1,6 million in the second quarter of 2016 as revenues rose to €137.1 mllion from €131.1 million. The number of passengers carried rose to 3.08 million from 2.90 million, while that of freight units recorded a fall to 64,912 from 67,035.
In the first six months of the year, the group madea net loss of €12.3 million, deeper than the €8.9 million loss year on, while revenues edged up to €239.2 million from €238.0 million
“Competition in Viking Line’s service area remains tough and implies continued pressure on prices and volumes. Bunker prices are expected to be higher than in 2016, which should have an adverse effect on consolidated income,” the company said in a statement.
“A revision in Finland’s restitution law for 2017 is expected to have a positive effect on earnings. Operating income is expected to be higher overall in 2017 than in 2016,” Viking Line said. The 2016 operating profit was €13.7 million.
DFDS, the Copenhagen based ferry group, has reported a slight rise in passenger volumes a the demand for passenger ferry services in the second quarter compared to last year was boosted by the late Easter.
The number of passengers in the latest quarter increased 3.6% compared to the second quarter of 2016, while in the first six months of the year, volumes increased 1.8%.
“Outside peak seasons demand from UK residents continue to be soft while demand from overseas markets, especially Asia, is increasing,” the company said in a statement.
Apollo Global Management, LLC, the Genting Hong Kong owned Star NCLC Holdings Ltd. and certain funds affiliated with TPG Global, LLC intend to sell 15 million shares in Norwegian Cruise Line Holdings lts, the world’s third largest cruise shipping company.
The shares would be sold to a group of underwriters comprising of Citigroup Global Markets Inc., Barclays Capital Inc. and Goldman Sachs & Co. LLC at a price of $54.57 per share, valuing the lot at $818.5 million.
Genting Hong Kong was the sole and later principal shareholder of Norwegian until it started to sell down its stake in order to buy Crystal Cruises and to expand the company, grow its Star Cruise business in Asia and set up the Asia-Pacific focused Dream Cruise premium market cruise line in 2015.
Earlier this month, Genting Hong Kong said it expects to a make a loss of about $200 million to $220 million this year due to start up costs and capital expenditure related to the growth of its business.
Excitement was in the air today at the Meyer Werft shipyard in Papenburg, Germany, as Royal Caribbean International marked the official start of construction by cutting the first piece of steel for its new Quantum Ultra ship. The next engineering marvel in the cruise line’s lineup will officially be named Spectrum of the Seas.
Set to debut in 2019, Spectrum will be the next evolution of the cruise line’s groundbreaking and high-tech Quantum class of ships placing the ship in a new class of her own. The revolutionary Quantum Ultra ship will specifically be designed for guests in China and the Asia-Pacific region, and will feature cutting-edge and unprecedented experiences and amenities.
“Today is a very special day in the development of our new Quantum Ultra ship, Spectrum of the Seas. We are now one step closer to delighting our guests in Asia Pacific with this remarkable ship,” said Michael Bayley, President and CEO, Royal Caribbean International. “Spectrum will be another giant leap forward in vessel design and guest experiences that will provide travelers with ample opportunities to create unforgettable memories.”