Star Cruises, the Asia-Pacific focused cruise shipping unit of Genting Hong Kong group, has reported a significant widening of loss year on for the April-June period.
Revenues totaled at $274.9 million compared to $252.9 million a year earlier, but loss deepened to $21.7 million from $14.3 million. “Onboard and other revenues grew 5.7% to $32.7 million primarily driven by higher onboard retail sales. Passenger ticket revenue decreased 6.5% to $68.3 million mainly due to m.v. SuperStar Virgo’s drydock and its relocation to Hong Kong,” Genting Hong Kong said in a statement.
Star Cruises receives most of its income from gaming on board its ships and revenues from this activity increased to $167.0 million from $146.8 million.
Total cost and expenses, excluding depreciation and amortisation, increased to $261.4 million in 1H2014 compared with $232.8 million in 1H2013, mainly attributable to higher salaries and marketing and promotion expenses. Total costs and expenses, excluding fuel expenses and depreciation and amortisation, increased 15.3% to $229.7 million but increased only 10.7% on a per-capacity-day basis compared with that of 1H2013.
Fuel expenses, included in total costs and expenses, declined 5.4% to $31.6 million due to lower overall fuel consumption mainly as a result of the drydock of m.v. Superstar Virgo in January 2014 coupled with a 2.8% decrease in average fuel price. Star Cruises’ average fuel price per metric ton, net of hedges, was $636 in 1H2014 compared with $654 in 1H2013.
Total depreciation and amortisation expenses increased 7.0% to $41.5 million in 1H2014, primarily due to the additional capitalised drydock expenses of m.v. Superstar Virgo in 1H2014.
From November 2014, m.v. SuperStar Virgo and m.v. SuperStar Gemini will continue their homeport deployment in Hong Kong and Singapore, respectively. M.v. SuperStar Gemini will be offering various itineraries cruising to destinations including Penang, Langkawi, Port Klang and Malacca while m.v. SuperStar Virgo will focus on offering over-night cruises to the high seas from its homeport.
To enhance customer experience, m.v. SuperStar Virgo is scheduled to undergo minor facility enhancement projects in the third quarter of 2014 for its Hong Kong deployment. M.v. SuperStar Aquarius will commence its seasonal homeport deployment for the 2014/15 winter season, returning to Kota Kinabalu, the capital of Sabah, Malaysia.
Star Cruises’ announced newbuild programme has made good progress. Two new ships are on order with Meyer Werft GmbH at Papenburg, Germany for delivery scheduled in the fourth quarter of 2016 and 2017, respectively.
Each of these sister ships is approximately 150,000 gross tons and will be designed to offer a wide variety of Asian and international food & beverage outlets as well as world-class recreation, health & fitness and conference facilities catering to the unique demand of the Asian clientele. The two new ships are expected to reinforce Star Cruises’ leading position in Asia-Pacific and our commitment to develop the region as an international cruise destination.
