More News

NCLH cuts first quarter net loss and reports small operating profit

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 01 May 2023 01 May 2023

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest listed cruise shipping company, has reduced its net loss and reported a small operating profit for the first quarter of 2023.

Net loss narrowed to $159.3 million from $982.7 million a year earlier, while operating result showed a profit of $10.7 million compared to a loss of $688.7 million. Revenues increased to $1,821.9 million from $521.9 million.

The company said it had continued its phased occupancy ramp-up in the first quarter, achieving a 15-point sequential improvement to approximately 101.5%, exceeding guidance of approximately 100%.

“The phased Occupancy ramp-up is expected to be complete in the second quarter at approximately 105%. As planned, this is slightly lower than the second quarter of 2019, reflecting the Company’s strategic shift to longer, more immersive itineraries. Full year 2023 Occupancy, which reflects the phased voyage ramp-up, is expected to average 103.5%, consistent with prior guidance,” NCLH said in a statement.

On the heels of a very strong WAVE season, NCLH continues to experience strong consumer demand. Cumulative booked position for the remainder of 2023 is ahead of 2019 levels inclusive of the company’s approximately 18% increase in capacity, at continued higher pricing.

Advance ticket sales well ahead of 2019

“As of March 31, 2023, the Company’s advance ticket sales balance, including the long-term portion, was a record $3.4 billion, approximately 26% higher than the prior quarter and approximately 60% higher than the first quarter of 2019. Onboard revenue generation remains robust, and the Company continues to focus on increasing its pre-sold revenue from guests prior to voyage sailing, as this typically results in higher overall spend throughout the cruise journey,” NCLH said.

Total revenue per Passenger Cruise Day was up approximately 17.5% as-reported and approximately 18.3% in constant currency in the first quarter of 2023 versus 2019. Looking ahead, full year guidance remains unchanged at Net Per Diem growth in the range of 9.0 to 10.5% and Net Yield growth in the range of 5.0 to 6.5%, both on a constant currency basis and compared to 2019.

Total cruise operating expense increased in 2023 compared to 2022, due to the full resumption of voyages, which resulted in higher payroll, fuel, and direct variable costs of fully operating ships.

Costs for certain items were also impacted by lagging inflationary pressures. Gross Cruise Costs per Capacity Day was approximately $298 in the quarter as-reported and $301 in constant currency.

Adjusted Net Cruise Costs excluding Fuel per Capacity Day in constant currency was approximately $161, reflecting an approximately 14% decrease compared to the second half of 2022 as benefits from the company’s ongoing margin enhancement initiative are taking effect.

Fuel costs, interest expenses minus one- off items increase

Fuel price per metric ton, net of hedges, increased to $779 from $724 in 2022. The Company reported fuel expense of $194.9 million in the period.

Interest expense, net was $171.3 million in 2023 compared to $327.7 million in 2022. The fresh figure included lower extinguishment of debt and debt modification costs, which were $2.4 million in 2023 compared to $188.4 million in 2022. "Excluding this, interest expense increased primarily as a result of higher rates," the company said.

“Other income (expense), net was expense of $(9.0) million in 2023 compared to income of $38.1 million in 2022. In 2023, the expense primarily related to losses on foreign currency remeasurements. In 2022, the income primarily related to gains on fuel swaps not designated as hedges and foreign currency remeasurements,” NCLH said.

The company did not provide a GAAP based guidance for the rest of 2023.

Havila Voyages receives license from Central Bank of Ireland

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 01 May 2023 01 May 2023

Havila Voyages has received a license from the Central Bank of Ireland to enable the financing and delivery of its coastal cruise ships Havila Polaris and Havila Pollux to proceed. The license also allows the company to settle its debts with the original lenders.

"The situation we are in is very complex and demanding. The licenses are required for us to legally implement our financing solutions. Despite good assistance from the Norwegian authorities the process has taken longer than we would like. Fortunately, the license from Ireland is now in place, which enables us to legally finance our ships," says CEO Bent Martini of Havila Voyages.

Havila Voyages has also applied for licenses in the UK and the USA, to ensure both British and American investors can participate in the financing. The license from Ireland, and a previously received license from the Norwegian Ministry of Foreign Affairs, ensure legal financing from EU countries and Scandinavia.

Havila Voyages has engaged Arctic Securities AS and Fearnley Securities AS as facilitators to assist in the financing process.

"The licenses are crucial for our facilitators to be able to work freely in relevant markets for us to settle our debts to the original lender to a frozen account according to the sanction regulations and releasing the security in the vessels," explains Martini.

"The ships will be ready for delivery as soon as we have completed the financing process, and we apologize to all affected parties for having to postpone once again," he continues.

Due to the time-consuming processes, the start-up of operations for Havila Polaris and Havila Pollux will be further delayed. The start-up date for Havila Polaris is set for 12th of June while Havila Pollux will commence operations on 18th June.

Good sales figures

Despite the uncertainty that Havila Voyages is experiencing, the company sees significant interest in the latest additions to the historic coastal route Bergen-Kirkenes-Bergen and is reporting strong sales figures.

"We have a high volume of traffic, both to our customer center and via our website, and had close to 70% occupancy in the first quarter, with 50% of all capacity for all four ships sold out for the year. This is ahead of what we expected for the year," says Martini.

"For us, it will be crucial to capitalize on the interest and get all four ships in operation. We have a societal mission to deliver, and we depend on running the company in an economically sustainable way. It is challenging when we constantly face setbacks and situations far beyond our control, but we look forward to soon being able to focus on delivering a top quality, modern product along the Norwegian coast in accordance with the agreement with Norwegian authorities," he concludes.

Photo credit: Ronny M. Olsen

Registration opens for Interferry’s 47th annual conference

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 01 May 2023 01 May 2023

Global trade association Interferry is set to welcome a worldwide audience of industry professionals to Australia in November for its 47th annual conference, which will focus on customer experience and sustainability. Delegate registration has now opened on the conference website, together with a Call for Speakers.

This year’s event takes place in Hobart, Tasmania from November 4-8. It provides a forum for ferry operators and suppliers to present innovative approaches to enhancing passenger satisfaction along the whole customer journey, while improving efficiency to optimise positive revenues. In addition, a comprehensive networking and social program will enable the entire ferry community to connect, exchange knowledge and share experiences.

Interferry CEO Mike Corrigan comments: “I am delighted to bring the conference to Tasmania this year in close cooperation with our host ferry operator and board member Spirit of Tasmania. Here, as in all other parts of the world, our industry is facing more economic, commercial and regulatory changes than ever while maintaining a vital role in society.

“By extending our geographical networks, exchanging best practices and collectively embracing opportunities, we improve the position of every member and truly demonstrate our ’Stronger Together’ creed. We look forward to meeting many friends old and new Down Under.”

As well as the delegate registration facility, the conference website includes a Call for Speakers portal inviting submissions from potential contributors by a deadline of May 31. Speaking slots are expected to fill quickly, with selected applicants notified by mid-June.

Delegate registration is available at https://interferryconference.com/ and speaking applications should be made at https://interferryconference.com/call-for-speakers/

MSC Bellissima to sail year-round from Japan

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 01 May 2023 01 May 2023

MSC Cruises hosted a special event on board MSC Bellissima in Yokohama, Japan to mark the start of the summer 2023 season and to celebrate the 15-year anniversary of the line’s presence in the country. At the same time, sales have today opened for MSC Cruises’ first ever winter season in Japan. With cruises now year-round from Japan, MSC Cruises offers the largest cruise capacity in the region, setting the line on track to become the number one cruise line in the country.

The new winter programme on MSC Bellissima will commence from November 2023 with an 11-night, 9-night and 6-night cruise from Yokohama. From January to March 2024, MSC Bellissima will homeport in Naha in Okinawa offering guests from around the world the opportunity to experience Japan’s stunning landscapes and beaches, rich cultural heritage, ancient traditions, and modern attractions with multiple destinations – all without having to repack a suitcase.

The Winter 23/24 season will see MSC Bellissima sailing within Japan and to Keelung, Taiwan, offering cruises of four to five nights in length, with varying itineraries visiting destinations such as:

– Okinawa, Japan - The fifth largest island of Japan is known for its balmy tropical climate, expansive beaches and stunning coral reefs, as well as historical sites
– Ishigaki, Japan – Another stunning beach destination with incredible snorkelling, diving and surfing sites, guests may go searching for the Shiraho Reef's rare blue coral in Iriomote-Ishigaki National Park
– Keelung, Taiwan (China) - Keelung City is surrounded by inspiring mountains and is home to a bustling waterfront, where street-food stalls at Miaokou Night Market offer traditional snacks and seafood. Several forts pepper the area and offer breath-taking views out to sea
– Miyako Island, Japan - Miyako Island is revered for its white sandy beaches and turquoise waters. Guests will delight in local foods, including sweet mangoes, or go out looking for adventure in the many underwater caverns

This summer, MSC Bellissima is now sailing eight- to nine-night summer sailings out of Yokohama, Tokyo - offering one-of-a-kind opportunities to discover the beauty of the region. Some of the departures still have availability – for more information visit here.

Emerald Sakara floated out in Vietnam

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 30 April 2023 30 April 2023

Final fit-out operations are near completion on Emerald Cruises’ latest ocean-going yacht, Emerald Sakara, as it prepares for upcoming sea trials. Work is also on schedule to see the stylish interior completed and fully outfitted before the first guests arrive for the inaugural sailing. The debut sailing – the eight-day Ionian Sea Adventure from Athens to Rome on August 5, 2023 – is less than three months away.

Emerald Sakara, the second luxury yacht to join the Emerald Cruises fleet, was custom built by The Halong Shipbuilding Company in Vietnam and follows quickly in the wake of identical sister-yacht, Emerald Azzurra, which launched in March 2022.

Both the Emerald Sakara and Emerald Azzurra feature just 50 luxury suites and staterooms, 88 percent of which have a private balcony or terrace. With a maximum of 100 guests on a given journey, Emerald Sakara, like her sister yacht, offers a new type of exclusive cruising experience, exploring ports and harbors only accessible to small yachts.

“Karen and I have overseen the development and construction of Emerald Sakara and having visited the shipyard recently can say it certainly exceeds our expectations,” said Glen Moroney, Chairman and founder of The Scenic Group, Emerald Cruises’ parent company.

“Being able to add to the Emerald Cruises fleet so swiftly is a sign of the reception our new yachts have received from guests and our travel partners. Emerald Sakara opens up a whole world of new destinations that are sure to spark greater demand.” Karen Moroney is co-owner and head of product services for Scenic Group.

Onboard, Emerald Sakara’s Wellness Center comes complete with spa (where various body therapies are available), gym and state-of-the-art infrared sauna; while the Sky Bar, infinity pool and comfortable public areas on the top decks provide the perfect place to relax and watch the world go by.

The yacht’s marina platform was designed with watersports in mind. Guests can plunge into activities like swimming; borrow the gear to snorkel, paddleboard or take one of the SEABOBs out for a spin; or dive in with a little help from the deployable water-trampoline.

After Emerald Sakara’s August debut, the yacht will embark on a summer season exploring the coastal waters of Italy, Greece, Türkiye and the Adriatic. From there, it’s off to cross the Atlantic where the Emerald Sakara will winter in the Caribbean and Central American sun. The first Eastern Caribbean and Grenadines sailing is scheduled to depart on November 17, 2023. The yacht will be christened on December 2 in San Juan, Puerto Rico by her godmother Kelly Craighead, president and CEO of CLIA.

The inaugural eight-day Ionian Sea Adventure begins on August 5, 2023, in Rome (Civitavecchia) and heads to Athens (Pireaus), stopping at picturesque ports along the way. Guests can live it up with the glitterati on a guided walking tour of Capri, sample Sorrento’s famed gelato in one of many seaside towns or take in the colorful terraced houses of the Amalfi Coast as they kayak along the blue water. Other tempting excursions include a relaxing afternoon river tubing in Alcantara, hiking through olive groves in Cephalonia, and stepping back in time on a tour of the ancient ruins at Delphi.