Top Headlines

Norwegian’s operating income continued to improve in latest quarter

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 July 2013 29 July 2013

Norwegian Cruise Line Holdings, parent company of Norwegian Cruise Line and NCL America, extended its streak of improving operating income in the second quarter, the Miami based cruise operator stated, although net result showed swing to a loss.

"While the addition of Norwegian Breakaway to our fleet was undoubtedly the highlight of the quarter, our strong results, which include our twentieth consecutive quarter of year-over-year Adjusted EBITDA growth, are equally as notable," said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line.

Operating income (EBITDA) increased to $95.4 million in the second quarter from $87.0 million in the same period last year.

"Other initiatives in the quarter, from the refinancing of certain credit facilities to further optimize our capital structure, to the enhancements carried out on Pride of America at her recent dry-dock, demonstrate our culture of leaving no stone unturned in order to add incremental value for our shareholders and enhance the cruise experience for our guests."

An increase in Capacity Days and improvement in Net Yield resulted in a 12.0% increase in Net Revenue in the quarter. The addition of Norwegian Breakaway to the fleet, partially offset by planned Dry-docks for Pride of America and Norwegian Pearl, contributed to the 8.2% increase in Capacity Days while improvements in both passenger ticket and onboard revenue resulted in a 3.5% (3.7% on a Constant Currency basis) increase in Net Yield.

Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 4.8% on both an as reported and Constant Currency basis over prior year due to the timing of planned Dry-docks along with inaugural and launch expenses related to Norwegian Breakaway. Fuel price per metric ton, net of hedges, was essentially flat to prior year at $686 compared to $684 in 2012.

Interest expense, net in the quarter exceeded prior year by $54.8 million primarily due to expenses totaling $70.1 million related to the refinancing of certain credit facilities and the redemption of the remaining balance of the Company's $350 million 9.5% Senior Unsecured Notes due 2018, the company said in a statement.

Norwegian in the red as financing costs soar

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 July 2013 29 July 2013

Norwegian Cruise Line Holdings, parent company of Norwegian Cruise Line and NCL America, has reported a deep loss for both the second quarter and first half of the year due to mounting financing costs, figures released by the company show.

In the second quarter, net losses amounted to $8.9 million compared to a profit of $36.0 million a year earlier. Revenues rose to $457.6 million from $416.2 million, but net interest expenses soared to $103.9 million from $48.9 million.

In the first half, the loss amounted to $103.2 million in a sharp reversal from a profit of $39.6 million a year earlier. Revenues increased to $816.5 million from $767.5 million, but again net financing costs increased far more, to $231.4 million from $95.0 million a year earlier.

Royal Caribbean announces second quarter results

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 July 2013 25 July 2013

Royal Caribbean today announced second quarter 2013 net income of $24.7 million, or $0.11 per share, versus a loss of ($3.7 million) or ($0.02) per share, in the second quarter of 2012. Included in the 2013 figures is a $0.05 per share impact related to the Grandeur fire and a $0.07 non-cash charge to correct an underestimate of the reward liability for its affinity credit card. Absent these two charges, earnings per share would have been $0.23 per share.

Net Yields on a Constant-Currency basis increased 2.8% for the quarter. Ticket revenue for the second quarter came in as expected, while on-board revenue outperformed expectations. Excluding the affinity card adjustment, Constant-Currency Net Yields in the quarter increased 3.9% versus the prior year.

NCC excluding fuel were better than anticipated and increased 2.3% on a Constant-Currency basis (1.5% excluding the impact from Grandeur). Costs were controlled across all areas of the business with hotel, vessel and administrative expense categories all performing more efficiently than expected.

Bunker pricing net of hedging for the second quarter was $697 per metric ton and consumption was 6,400 metric tons lower than expected at 333,600 metric tons.

Outlook for full year 2013

Constant-Currency yields are expected to increase 2% to 3% (approximately 3% excluding the affinity card adjustment). The main shortfalls versus prior guidance are the affinity card adjustment, China sailings due to the conflict between China and Japan, and a modest reduction in expectations for the Caribbean. Despite ongoing discounting in the region, the company's Caribbean forecast was only modestly impacted and demand remains solid. Europe continues to demonstrate year-over-year improvement, with net ticket yields expected to increase in the mid-single digits for the year. In aggregate, both pricing and booked load factors are higher for the second half of the year than at the same time last year.

Onboard revenues have benefited from improved U.S. consumer spending and the new onboard revenue venues the company has added through its revitalization efforts.

NCC excluding fuel are expected to be up 1% to 2% on a Constant-Currency basis. The company continues to focus on cost savings initiatives and has lowered the midpoint of its expense guidance by 100 basis points for the year.

Fuel costs are expected to be relatively unchanged from the company's original guidance despite the recent increases in oil prices due to hedging and energy conservation measures.

Additionally, the US dollar has continued to strengthen against the basket of currencies in which the company trades. The US dollar is 5% stronger than when the company first issued guidance in January, the effect of which is detailed in the table below.

Full year earnings per share are expected to be in the range of $2.20 to $2.30.

Compagnie du Ponant orders new cruise ship

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 16 July 2013 16 July 2013

French cruise line and five-star expedition specialist, Compagnie du Ponant has commissioned another new yacht from the Italian Fincantieri shipyard.

Due to launch in spring 2015, this latest vessel joins a fleet of four cruise yachts, all flying the French flag: Le Ponant (32 staterooms), Le Boreal, L'Austral and Le Soleal (132 staterooms and suites). She will cruise up and down the shores of Alaska in summer and those of Australia and New Zealand in winter.

Like her sister ships, the vessel will qualify for the Cleanship label and embody the concept of Yacht Cruises as conceived by Compagnie du Ponant - namely a carefully thought-out design, attentive service and gourmet cuisine, enhanced by the comfort of state-of-the-art facilities.

This latest commission sends out a strong positive signal, further confirmation of the relevance of Compagnie du Ponant's investment and international development strategy, positioning the cruise line (which celebrates its 25th anniversary this year) at the exclusive end of the market. The market leader in the French-speaking luxury cruise markets (France, Switzerland and Belgium) and worldwide number one in the polar cruise market (both Arctic and Antarctic), Compagnie du Ponant carries 20,000 passengers a year, with a revenue of more than €85 million in 2012.

For Compagnie du Ponant this order is another step towards the future that proves the efficacy of our business model, stresses CEO Jean-Emmanuel Sauvée. It is a business model fully supported by Bridgepoint, which bought Compagnie du Ponant in September 2012 and has confirmed its confidence in the product by investing in this new ship.

After the excellent work achieved on the previous three yachts, the Fincantieri shipyard has been entrusted with building this fourth sister ship. French interior architect Jean-Philippe Nuel will be responsible for the sleek, modern and sophisticated design that has contributed so much to the success of Le Boreal, L'Austral and Le Soleal.

Specifically tailored to what our passengers seek, these intimate ships with their innovative design allow us to explore exceptional destinations in the most extreme regions, while enjoying a level of comfort that is second-to-none: a five star expedition and tailor-made service as conceived by Compagnie du Ponant, concludes Véronique Saadé, deputy executive vice president.

Norwegian Cruise Line confirms order for second Breakaway Plus vessel

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 16 July 2013 16 July 2013

Norwegian Cruise Line announced today that it has confirmed an order for a second Breakaway Plus cruise ship with Meyer Werft GmbH of Papenburg, Germany for delivery in spring 2017. Along with the first Breakaway Plus ship, which is scheduled for delivery in October 2015, these two new vessels will be the largest in the line's fleet at approximately 163,000 gross tons and 4,200 passenger berths each and will be similar in design and innovation to the line's current Breakaway class, the first of which, Norwegian Breakaway, launched in New York in early May.

The combined contract cost of the two Breakaway Plus class ships is approximately €1.4 billion. The company has export credit financing in place that provides financing for 80 percent of the contract price.

"The incredible response we've received from guests, travel agents and media regarding Norwegian Breakaway only reinforced our decision to add a second Breakaway Plus vessel to our fleet," said Kevin Sheehan, Norwegian Cruise Line's chief executive officer. "With groundbreaking elements, yet to be announced, and an additional deck to incorporate further innovations, our two Breakaway Plus ships will provide guests even more ways to experience all that the new Norwegian has to offer."

Meyer Werft delivered Norwegian Breakaway, the first of Norwegian's two new 146,600 gross ton, 4,000-passenger Breakaway class vessels on April 25, 2013; and will deliver Norwegian Getaway, in mid-January 2014.

"We're very pleased to build all these innovative ships for Norwegian Cruise Line," said Bernard Meyer, managing partner of Meyer Werft."