A+ A A-

NCL Corporation cuts final quarter loss, full year profit rises almost sixfold

  • Written by Kari Reinikainen
  • Category: Top Headlines

NCL Corporation, the Bermuda domiciled parent of Norwegian Cruise Lines and NCL America, reduced net loss in fourth quarter 2011 to $1.9 million from $40.0 million in the same period last year, while revenues increased to $488.6 million from $483.6 million. However, full year net profit soared to $126.9 million from $23.0 million in 2010 on a 10% rise in revenues that reached $2.20 billion, the company said in a statement.

President and CEO Kevin Sheehan did not give guidance for this year, but referred to investments ion both new tonnage and upgrades to the existing product and stated: ”. These investments in developing our assets, improving our travel agent relationships and enhancing the guest experience will provide benefits in 2012 and onward.”

Operating income for the year ended December 31, 2011 increased 37.1% to $316.1 million from $230.6 million in 2010. Net Revenue for the year increased 10.8% primarily due to the addition of Norwegian Epic to the fleet in June 2010 along with a 3.0% increase in Net Yield, or 2.4% on a constant currency basis. The improvement in Net Yield came primarily from higher ticket pricing as well as increased onboard spend per Capacity Day. Adjusted EBITDA for the year increased 24.9% to $506.0 million from $405.1 million in 2010 and revenue increased 10.3% to $2.2 billion from $2.0 billion.

Continuing business improvement initiatives resulted in a 1.8% decrease in Net Cruise Cost per Capacity Day, or 2.0% on a constant currency basis. Fuel price per metric ton remained elevated versus prior year increasing 14.2% to $571 from $500 in 2010. Excluding fuel, Net Cruise Cost per Capacity Day decreased 4.4%, or 4.7% on a constant currency basis.

Interest expense, net of capitalized interest, increased to $190.2 million from $173.8 million due to a full year of interest on the debt related to Norwegian Epic along with higher average interest rates. Other income was $0.9 million versus an expense of $34.0 million in 2010, which included a non-recurring charge of $33.1 million related to foreign exchange contracts associated with the financing of Norwegian Epic.

As far as the final quarter of 2011 is concerned, adjusted EBITDA in the quarter increased 38.7% to $88.3 million from $63.6 million in 2010. This improvement was a result of an increase in Net Revenue to $361.8 million from $355.2 million and a decrease in Net Cruise Cost to $274.8 million from $292.5 million in 2010. A 2.5% increase in Net Yield, the same on a constant currency basis, as a result of improved pricing and higher onboard spend per Capacity Day drove the increase in Net Revenue. Net Cruise Cost per Capacity Day decreased 5.4%, or 5.8% on a constant currency basis, due to lower dry-dock costs and more normalized repairs and maintenance costs and other operating expenses. The price of fuel in the quarter increased 15.8% to $573 per metric ton from $495 in 2010.


Interest expense, net of capitalized interest, decreased to $45.8 million in the quarter from $54.7 million primarily due to a write-off of certain deferred financing fees in 2010.

 Net loss for the quarter narrowed to $1.9 million on revenue of $488.6 million versus a loss of $40.0 million on revenue of $483.6 million in 2010.


Carnival Cruise Lines return to UK with 17 Carnival Legend cruises from Dover 2013

  • Written by Kari Reinikainen
  • Category: Top Headlines

Carnival Cruise Lines, which is part of Carnival Corp & plc group,  has announced a return to cruising in UK waters for the first time since 2008 with the deployment of Carnival Legend to Dover, Travel weekly reports in a newsletter.

The 2,600-capacity ship, which was built in 2002 will operate 17 cruises from the Kent port between 22 April and 31 October  2013. The decision to bring a ship back to the UK reflects Carnival’s ambitions to significantly grow brand awareness under new managing director Adolfo Perez.

Carnival was forced to abandon plans to establish a permanent base in the UK when the financial crisis hit in 2008 after it named Carnival Splendor in Dover. But Perez said the line believes now is the right time to re-establish its global expansion with the UK being one of its key markets outside of the US.

“Our goal is to grow the cruise market by attracting new-to-cruise,” said Perez. “The fact we are putting a ship in the UK’s backyard gives us access to UK guests and our marketing campaign is going to drive the brand.”

As well as Baltic cruises Carnival Legend will also sail in the Norwegian Fjords and around the British Isles as well as some Mediterranean cruises, the report said.

Carnival Cruise Lines to transfer Splendor to New York, Miracle moves to West Coast

  • Written by Teijo Niemelä
  • Category: Top Headlines

Carnival Cruise Lines announced several exciting itineraries for the 2013 season designed to offer more fun and memorable cruise options on both coasts.

Next spring, the company will reposition Carnival Miracle to the West Coast following a special Panama Canal voyage, and bring Carnival Splendor to New York, following three spectacular South America cruises.

The 2,124-passenger Carnival Miracle will shift to the West Coast in spring 2013 to operate the line's Alaska and Hawaii cruises, currently offered on the Carnival Spirit, which is being repositioned to Australia to operate the line's first cruises from that country. Carnival Miracle will also operate a seasonal Mexican Riviera program featuring the seven-day itinerary currently available on Carnival Splendor.

In turn, the 3,006-passenger Carnival Splendor will reposition to New York to assume Carnival Miracle's year-round eight-day Caribbean schedule beginning in March 2013, representing a capacity increase of 41 percent with this newer vessel. Before making its Big Apple debut, Carnival Splendor will offer three 13- to 18-day South America voyages from February to March 2013.

"Carnival Miracle, which recently emerged from a refurbishment that included the addition of an exclusive Serenity adults-only retreat and other enhancements, will provide guests with a fresh and exciting choice for West Coast cruising," said Gerry Cahill, Carnival president and CEO. "At the same time, Carnival Splendor will provide a newer, larger ship on our year-round program from New York and during the course of its repositioning will offer three South America cruises that visit some of the region's most spectacular and sought-after destinations," he added.