Lindblad Expeditions cuts third quarter loss, no guidance on return to profit

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Written by Kari Reinikainen Kari Reinikainen

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Published: 03 November 2021 03 November 2021

Lindblad Expeditions, the US based listed expedition cruise operator, has cut its loss in the third quarter from the same period last year, but the company did not issue guidance regarding  when it expected to return to profit.

Third quarter adjusted EBITDA loss came to $6.9 million, which was an improvement of $10.9 million of  the loss in the corresponding quarter last year.

“The Covid-19 pandemic has had, and will continue to have, a significant impact on the Company's financial position and results of operation,” the company said in a statement.

“Given the continued uncertainty around the Covid-19 pandemic, the Company is not providing a full year outlook regarding results of operations at this time and will update its expectations when it has more clarity around the timing of and extent of future operations, Lindblad said.

Dolf Berle, Chief Executive Officer, said in the statement: "We are extremely excited to have nearly all of our ships back exploring the world's most remarkable destinations, providing high-quality and immersive expeditions to our loyal guests.”

“The pent-up demand for authentic adventure travel is evident in both the overwhelmingly positive guest response as we return to destinations that we have been travelling to for decades, as well as in the sustained booking momentum we are generating across our fleet.”

NCLH sees return to profitability in second half of 2022

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Written by Kari Reinikainen Kari Reinikainen

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Published: 03 November 2021 03 November 2021

 

Norwegian Cruise Line Holdings Ltd (NCLH), the third largest cruise shipping group in the world; said continued to expect to reach a critical inflection point in the first quarter 2022 with operating cash flow turning positive.

“In addition, based on the current trajectory, the Company expects to be profitable for the second half of 2022,” it said in a statement.

NCLH continues to execute on the phased relaunch plans for its 28-ship fleet. The Company had approximately 40% of its capacity operating by the end of the third quarter 2021 with the fleet in service being cash flow positive in the quarter.

Occupancy in the third quarter 2021 was 57.4%, reflecting the Company’s self-imposed occupancy limits. Looking ahead, approximately 75% of capacity is expected to be operating by year-end 2021 with the full fleet back in operation by April 1, 2022.

Delta variant impact recedes

A negative impact on bookings of the Delta variant of the covid-19 virus that affected the final quarter and early 2022, NCLH’s overall cumulative booked position for full year 2022 is in line with 2019’s record levels at higher pricing even when including the dilutive impact of future cruise credits (“FCCs”).

“The overall cumulative booked position for the second half of 2022, when the full fleet is expected to be back in operation and at normalized occupancy levels, is meaningfully higher than 2019 and at higher prices,” the company said.

Advance ticket sales were $1.7 billion, including the long-term portion, which includes approximately $750 million of FCCs as of September 30, 2021. Advance ticket sales increased $0.3 billion on a net basis from the end of the second quarter even with approximately $100 million of revenue recognized in the quarter.

NCLH third quarter loss deepens to $845.9 million

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Written by Kari Reinikainen Kari Reinikainen

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Published: 03 November 2021 03 November 2021

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported a significant deepening of third quarter loss as resumption of operations increased operating costs

Net loss for the quarter was $845.9 million or EPS of $2.29 compared to net loss of $677.4 million or EPS of $2.50 in the third quarter of 2020. The company had 11 of its 28 ships in service at  the end of September,

Revenue increased to $153.1 million compared to $6.5 million in 2020 as cruise voyages resumed in the quarter.

Total cruise operating expense increased 131.3% in 2021 compared to 2020 as cruise voyages resumed in the quarter.

“In 2021, cruise operating expenses were primarily related to crew costs, including salaries, food and other travel costs as ships were prepared to return to service, fuel, costs related to health and safety protocols and other ongoing costs such as insurance and ship maintenance,” the company said in a statement.

Fuel price per metric ton, net of hedges, increased to $693 from $592 in 2020. The Company reported fuel expense of $79.2 million in the period.

Interest expense, net was $161.2 million in 2021 compared to $139.7 million in 2020. “The increase in interest expense reflects additional debt outstanding at higher interest rates, partially offset by lower LIBOR, NCLH said.

Royal Caribbean Group expects to return to profit next year

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Written by Kari Reinikainen Kari Reinikainen

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Published: 01 November 2021 01 November 2021

Royal Caribbean Group said the demand had been surging in the recent past and by the end of this year, 50 of its 61 ships should have returned to service. The company should generate a profit next year, it said in a statement.

“Although there are many uncertainties going forward regarding COVID-19, as well as cost and supply chain pressures, we continue our pathway forward and anticipate positive cash flow for the Group by spring of 2022 and generating positive earnings for the full year 2022," said Jason T. Liberty, Executive Vice President and CFO.

The company said it anticipated load factors on core itineraries to ramp to 65-70% during the fourth quarter.  “The Company anticipates 6.9 million (available passenger capacity days) APCDs for the fourth quarter with overall load factors of 60-65%,” it said.

“The Group expects all ships on core itineraries in the fourth quarter will be cash flow accretive even when including start-up costs.  By the end of the year, the Group expects that 50 out of 61 ships will have returned to service, representing almost 100% of core itinerary capacity and approximately 80% of worldwide capacity,” it said.

The remaining ships should return by the spring of 2022 and return to historical load factors in the third quarter 2022. “Mainland China is expected to resume in the spring and we have assumed lower load factors as this important long term market ramps up,” the company stated.

At the end of September, the company had approximately $2.8 billion in customer deposits, while the comparable figure for the three brands at the same time in 2019 was $3.1 billion.

“This represents an improvement of about $400 million over the past quarter despite the $300 million of revenue that was recognized during the quarter,’ Royal Caribbean said.  

“Approximately 35% of the customer deposit balance is related to future cruise credits (FCC)s compared to 40% in the prior quarter; a positive trend indicating new demand.  Customer deposits for second quarter 2022 forward sailings are higher than at the same time in 2019,”it pointed out.