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NCLH expects first quarter loss, rest of year to depend on operations

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 25 February 2021 25 February 2021

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third lasted listed cruise shipping group, expects to report a net loss in the first quarter of the present year, while the rest would depend on its ability to resume operations, it said in a statement.

“As a consequence of the COVID-19 pandemic, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it will report a net loss for the first quarter ending March 31, 2021 and expects to report a net loss until the Company is able to resume voyages,” NCLH said.

NCLH’s overall cumulative booked position for the second half of 2021 remains below historical levels, driven by continued uncertainty around timing of the resumption of cruising and the shift of limited marketing investments to 2022 sailings. “Pricing for the second half of 2021 is in line with pre-pandemic levels, even after including the dilutive impact of future cruise credits (“FCC”),”it said.

“While still early in the booking cycle, 2022 booking trends are very positive driven by strong pent up demand. The Company is experiencing robust future demand across all brands with the overall cumulative booked position for the first half of 2022 significantly ahead of 2019’s record levels with pricing in line when excluding the dilutive impact of FCCs,” NLCH stated

At the end of 2020, NLCH had $1.2 billion of advance ticket sales, including the long-term portion of advance ticket sales, which includes approximately $0.85 billion of future cruise credits.

“For the first quarter of 2021, the Company expects the average cash burn rate to temporarily remain elevated at approximately $190 million per month, or approximately $170 million per month excluding non-recurring debt modification costs, as it ramps down relaunch-related expenses and repatriates crew,” it said.

NCLH has incurred approximately $60 million of one-time debt deferral and modification costs and fees in the first quarter of 2021 as a result of successful debt deferrals and covenant waivers and suspensions, which combined with newbuild payment extensions, have resulted in approximately $1 billion of additional liquidity over the next 12 months. “Once the ramp down of relaunch-related expenses are complete, the Company expects its average cash burn rate to decrease and remain at reduced levels until return to service preparations resume,” it added.

NCLH reports $4.0 billion loss for 2020

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 25 February 2021 25 February 2021

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.

Meyer Werft cuts first steel for Arvia

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 23 February 2021 23 February 2021

First steel has been cut at Meyer Werft in Germany for P&O Cruises’ newbuilding Arvia, the Carnival Corporation & plc group unit said in a statement.

Arvia is P&O Cruises’ second LNG-powered 184,700 gross ton Excel class ship and will join its fleet in December 2022. Holidays on Arvia go on sale next month. Iona, the first unit of the class, was delivered to P&O Cruises in the autumn.

In a speech at the virtual ceremony P&O Cruises president Paul Ludlow said: “The steel cutting marks an extraordinary milestone for the future of P&O Cruises. It is a future which will include two of the most environmentally innovative ships in the world today.”

“Iona is poised to join our fleet this summer as we return to service and is eagerly anticipated by our employees, crew and certainly by our guests who cannot wait to sail on her during her maiden season from Southampton.

“Whilst Arvia may have a different look and feel to Iona, being built to sail in the sun, the inherent DNA is the same. It is one which exemplifies design excellence, forward-thinking power generation and future-focused experiences. The hardware, technology and interior arrangement of spaces leaves nothing lacking.”

“ Every sheet of metal, every control panel, every cabin, light fitting and chair has been designed and debated to ensure that it provides a pinnacle holiday for our guests and the foremost working and living experience for our crew,” Ludlow said.

Carnival raises $1.01 billion in share offering

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 23 February 2021 23 February 2021

Carnival Corporation & plc, the world’s largest cruise shipping group, said that Carnival Corporation, its Panama domiciled and US listed holding company, has priced its previously announced underwritten public offering of 40,450,619 shares of common stock of the Corporation at a public offering price of $25.10 per share.

“The offering is expected to close on February 24, 2021, subject to customary closing conditions. The Corporation expects to use the net proceeds from the offering for general corporate purposes,” the company said in a statement.

Goldman Sachs & Co LLC is acting as sole bookrunner and underwriter for the proposed public offering.

Royal Caribbean Group expects 2021 loss

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 22 February 2021 22 February 2021

Royal Caribbean Group (RCG), the world’s second largest cruise shipping company, said that booking activity for the second half of 2021 is aligned with its anticipated resumption of cruising, but added that a 2021 loss appears likely.

“Pricing on these bookings is higher than 2019 both including and excluding the dilutive impact of future cruise credits (FCCs),” it said in a statement, referring to bookings for the second half of this year.

“While the brands are still in the process of opening for sale the remainder of their 2022/2023 seasons, first and second quarter 2022 sailings have been open for some time. Cumulative advance bookings for the first half of 2022 are within historical ranges and at higher prices. This was achieved with minimal sales and marketing spend which the Company believes highlights a strong long-term demand for cruising,” RCG said

Since the last business update, approximately 75% of bookings made for 2021 are new and 25% are due to the redemption of FCCs and the "Lift & Shift" programme At the end of 2020, RCG had $1.8 billion in customer deposits of which 50% are related to FCCs. “Since the suspension of operations, approximately 53% of the guests booked on cancelled sailings have requested cash refunds,” it said.

RCG’s operation is still subject to the impact of COVID-19. Consequently, it cannot reasonably estimate its financial or operational results. “Notwithstanding the foregoing, the Company expects to incur a net loss on both a US GAAP and adjusted basis for its first quarter and the 2021 fiscal year, the extent of which will depend on many factors including the timing and extent of the return to service,” it stated.

The expected capital expenditures for 2021 are $2.1 billion. These expenditures are mainly driven by our newbuild projects which have committed financing. During 2021, RCG expects the delivery of Odyssey of the Seas and Silver Dawn during the first and fourth quarters, respectively.