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NCLH first quarter net profit rises to $103.1 million on strong pricing, capacity growth 

Norwegian Cruise Line Holdings Ltd. (NCLH), the world’s third largest cruise shipping group, has reported a rise in first quarter net profit to $103.1 million from $61.9 million year on.

Revenues rose to $1.29 billion from $1.15 billion and operating profit (EBIT) reached $167.0 million compared to $119.7 million year on. Earnings per share rose to $0.45 from $0.27 under US GAAP.

The improvements were primarily attributed to strong organic pricing growth across all core markets along with an increase in capacity days due to the addition of Norwegian Joy to the fleet, the company said in a statement.

“The year is off to an impressive start with yet another record quarter of earnings, which exceeded expectations," said Frank Del Rio, president and chief executive officer of NCLH

“The 2018 Wave Season was stellar and has further strengthened our overall future booked position with load factor and pricing continuing to be well ahead of prior year for the remaining quarters of 2018 and throughout 2019,” he said in a statement.

Revenue increased 12.4% to $1.3 billion compared to $1.2 billion in 2017.  Net revenue increased 13.1% to $1.0 billion compared to $0.9 billion in 2017. Capacity days due to the addition of Norwegian Joy to the fleet.  Gross yield increased 1.4% and Net yield increased 1.0% on a constant currency basis and 2.0% on an as reported basis.

Total cruise operating expense increased 6.7% in 2018 compared to 2017 primarily due to an increase in capacity days.  Gross cruise costs per capacity day decreased 1.5% due to a decrease in maintenance and repairs including dry dock expenses partially offset by an increase in marketing, general and administrative expenses. 

Adjusted net cruise cost excluding fuel per capacity day decreased 2.7% on a constant currency basis and 2.1% on an as reported basis. Fuel price per metric ton, net of hedges decreased to $448 from $453 in 2017.  The company reported fuel expense of $93.4 million in the period.

CBM 2018/2019 Winter