Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third lasted listed cruise shipping group, has reported a deep loss for both the final quarter and full year 2020.
Net loss in the fourth quarter of 2020 amounted to $738.9 million compared to a profit of $121.3 million. Revenues dived to mere $9.6 million from $1.48 billion.
For the full year, the loss amounted to $4.01 billion compared to a profit of $930.2 million in 2019. Revenues decreased sharply, to $1.28 billion from $6.46 billion.
“While 2020 has been without a doubt the most challenging year in the Company’s 50 plus year history, our team responded to the unprecedented environment with swift and decisive action,” said Frank Del Rio, president and chief executive officer of NCLH, in a statement.
“Our Company demonstrated once again its adaptability and resiliency, underscored by the unwavering commitment and dedication from our team members across the globe,”. “Looking ahead, we are encouraged by the accelerating rollout of vaccines, the progress towards herd immunity and the strong demand for future cruise vacations,” he continued
At the end of 2020, NCLH’s total debt position was $11.8 billion and the its cash and cash equivalents was $3.3 billion. It was in compliance with all debt covenants as of December 31, 2020.
NCLH has taken the following additional actions to enhance liquidity since September 30:
Raised $824 million, net of underwriting fees, with an equity offering of 40 million ordinary shares in November 2020.
Issued $850 million of 5.875% senior unsecured notes due 2026 in an oversubscribed offering in December 2020.
Amended all export credit agency backed credit agreements to defer approximately $680 million of amortization payments through March 31, 2022 and received covenant waivers through December 31, 2022.
Deferred certain newbuild-related payments of approximately €220 million through March 31, 2022.
Provided additional near-term financial flexibility by amending the Pride of America and Norwegian Jewel credit facilities to suspend the testing of certain financial covenants.
Amended Senior Secured Credit Facility to defer approximately $70 million of certain amortization payments due prior to June 30, 2022 and suspend the testing of certain financial covenants through December 31, 2022.
Extended salary reductions and furloughs for certain shoreside team members.
Continued significant reductions or deferrals of near-term marketing expenses and non-essential capital expenditures.
