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NCL Corporation reports 18% rise in third quarter net profit

  • Written by Kari Reinikainen
  • Category: Top Headlines

NCL Corporation, parent company of Norwegian Cruise Line and NCL America, has reported a rise in net profit to $110.1 million in the third quarter from $93.0 million in the same period last year, while revenues increased to $666.6 million from $634.1 million.

Net yield increased 3.8%, mainly on higher ticket prices. “Benefits realized from ongoing business improvement initiatives coupled with non-recurring expenses in the third quarter of 2010 related to the launch of Norwegian Epic resulted in a decrease in Net Cruise Cost per Capacity Day of 2.0%, or 2.8% on a Constant Currency basis, after considering a 17.9% increase in the price of fuel to $598 per metric ton from $507 in 2010.  Excluding fuel expense, Net Cruise Cost per Capacity Day decreased 5.3%, or 6.2% on a Constant Currency basis,” the company said in a statement.

 "A strong summer season resulted in solid top-line growth in the quarter," said Kevin Sheehan, President and Chief Executive Officer of Norwegian Cruise Line. "Pricing was up across the fleet despite several voyages being impacted due to tropical weather conditions in the Northeast and Caribbean," continued Sheehan.

Interest expense, net of capitalized interest, increased to $49.9 million in the quarter compared to $46.2 million in 2010 due to higher average interest rates in the period resulting from the issuance of $250 million in senior notes in November of 2010. 

RCCL warns of weaker full year 2011 than earlier forecast

  • Written by Kari Reinikainen
  • Category: Top Headlines

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, has revised lower its expectations for the full year 2011 earnings per share (EPS), but on the other hand the outlook for next year is encouraging.

“For the full year 2011, the company’s Constant-Currency Net Yield improvement expectations are essentially unchanged at 2% to 3%. Including currency movements, full year Net Yields are expected to increase approximately 4%,” RCCL said in a statement.

“Full year 2011 EPS is expected to be within a range of $2.70 to $2.80, a $0.15 reduction from prior guidance primarily due to the strengthening of the U.S. Dollar and the fuel option revaluation loss,” the company said..

As far as next year is concerned, RCCL said: “Though economic uncertainty is elevated and it is still early in the booking cycle, 2012 demand thus far has been solid. Booked load factors and pricing are both running ahead of this time last year, which supports the company’s expectation of continued yield accretion during 2012.”

RCCL third quarter net profit climbs to $399 million

  • Written by Kari Reinikainen
  • Category: Top Headlines

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, has reported net income of $399.0 million, or $1.82 per share, versus $350.2 million, or $1.61 per share, in 2010.

“Results include an $0.08 per share mark-to-market revaluation loss on the company’s WTI fuel option portfolio. Absent the revaluation charge, third quarter earnings per share totaled $1.90,” the company said in a statement.

Revenues improved to $2.3 billion in the third quarter of 2011 compared to $2.1 billion in the third quarter of 2010 as a result of capacity increases and yield improvements. Net Yields for the third quarter of 2011 increased 5.3% (2.6% on a Constant-Currency basis). "The company experienced particularly strong demand for its Caribbean and Alaska products during the third quarter with both markets experiencing increases in excess of 15% in ticket yields and Alaska yields reaching a historical high," RCCL said.

Costs in the third quarter of 2011 remained under tight control with NCC excluding fuel increasing only 0.7% on a Constant-Currency basis (2.5% on an as-reported basis).

Bunker pricing for the third quarter was consistent with earlier calculations at $608 per metric ton and consumption was 333,000 metric tons. During the quarter the company booked an $0.08 per share mark-to-market revaluation loss on its WTI fuel option portfolio.

“This loss partially offsets the revaluation gains the company recorded earlier in the year. As previously noted, these fuel options have been entered into for the purpose of protecting the company against spikes in oil prices. However, the options are not treated as hedges for accounting purposes and therefore can cause swings in quarterly earnings. Overall, they have been a successful strategy despite the swings they have caused, RCCL said.

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