Top Headlines
Fincantieri first half profit rises, lay offs loom as orderbook shrinks
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 31 July 2012 31 July 2012
Fincantieri, the Italian state owned shipbuilder that is a leadinhg builder of passenger vessels, has reported an increase in profit from ordinary operations, but a reduction in its orderbook for the first half of the year. Consequently, the company warns of insufficient workload.
The profit rose by 62.5% to €26 million in the first six months of the year compared to the same period in 2011, while revuenues increased to €1.23 billion from €1.18 billion. Cash holdings at the end of June amounted to €909 million, significantly more than €166 million on 31 December last year. Order portfolio totaled at €7.07 billion at the end of June, a decline from €7.92 billion 12 months earlier.
“Of particular note is the Group's net financial position, which at the end of June reported a net cash surplus of euro 909 million. Such a financial position makes it possible, on the one hand, to plan and cover future working capital financing requirements with complete peace of mind and on the other to consider, without particular duress, potential new investments to create value for the Group,” Fincantieri said in a statement.
New orders won fell to €488 million from €874 million in the first half of 2011. At 30 June 2012, the Fincantieri Group’s order portfolio stood at €7.07 billion. “The associated order backlog, although a still significant €5,047 million, will continue to be unable to saturate production capacity at all the Group's shipyards. The Group therefore plans to carry on using extraordinary income-support benefits to lay off workers at Italian shipyards where there is insufficient work,” Fincantieri warned.
Norwegian Cruise Line reports results for second quarter 2012
- Details
- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 30 July 2012 30 July 2012
Norwegian Cruise Line (NCL Corporation Ltd.) today reported results for the quarter ended June 30, 2012.
Improved revenue performance in the quarter coupled with business improvement initiatives resulted in a 14.1% increase in operating income to $87.0 million along with an 8.6% increase in Adjusted EBITDA to $135.1 million. Net Revenue increased 2.7% in the quarter due to an improvement in Net Yield and a 1.5% increase in Capacity Days. Net Yield increased 1.2% (1.9% on a Constant Currency basis) as a result of higher average ticket pricing.
Net Cruise Cost per Capacity Day decreased 1.3% (0.9% on a Constant Currency basis) as benefits from business improvement initiatives and efficiencies coupled with the timing of repairs and maintenance expense more than offset a 15% increase in the per metric ton cost of fuel to $684. Excluding fuel expense, Net Cruise Cost per Capacity Day decreased 5.1% (4.5% on a Constant Currency basis). "Our financial results for the quarter demonstrate healthy top line growth, albeit moderated by the impacts from pressures surrounding Europe. As expected, our deployment, which includes a record four ships in Europe, benefited the top line through higher ticket revenue with a slight offset in onboard spend," said Kevin Sheehan, President and CEO of Norwegian Cruise Line. "And the benefits from business improvement initiatives not only contributed to our financial results, but also to our ongoing commitment in improving the experience of our guests," continued Sheehan.
Interest expense was $48.9 million compared to $46.7 million in 2011 reflecting a write-off of $2.4 million of deferred financing fees in 2012. The Company posted a 23.3% increase in net income to $36.0 million on revenue of $583.2 million from $29.2 million on revenue of $568.6 million in 2011.
Quarter highlights
Progress on Norwegian Breakaway, the Company's newest ship currently under construction at Meyer Werft, continued to gain momentum throughout the quarter. In early May, the keel was laid, marking the start of the ship's construction. Recently, the Company announced Norwegian Breakaway's extraordinary entertainment line-up, full of hit Broadway shows headlined by the 80's-inspired rock musical ROCK OF AGES which is joined by ballroom dance sensation BURN THE FLOOR and the spectacular CIRQUE DREAMS & DINNER JUNGLE FANTASY. The line-up also includes improvisational troupe The Second City and the popular dueling pianos of Howl at the Moon at Headliners Comedy Club while Fat Cats Jazz & Blues Bar will play host to a Norwegian Cruise Line favorite and New Yorker Slam Allen.
As the largest vessel to ever homeport year-round in New York City, Norwegian Breakaway has many elements of New York incorporated into its offerings. The hull art design was conceived by celebrated New York-based artist Peter Max and further strengthening her ties to the Big Apple, Norwegian enlisted famed New York-based celebrity chef Geoffrey Zakarian to create and oversee our first seafood-centric dining venue, Ocean Blue by Geoffrey Zakarian. Commenting on Norwegian Breakaway, Sheehan stated, "Our goal is to make Norwegian Breakaway New York's ship and the first choice when cruising from this great city. New Yorkers are accustomed to the best, and by enlisting authentic Broadway entertainment such as Rock of Ages and partnering with acclaimed chef Geoffrey Zakarian on Ocean Blue, I'm positive that anyone looking for a taste of New York will feel right at home on Norwegian Breakaway."
Also during the quarter the first steel cutting for Norwegian Getaway was held in conjunction with Norwegian Breakaway's keel laying. Homeporting year-round in Miami, Norwegian Getaway will give Norwegian a strong foothold in the world's most popular cruise port. Also homeporting year-round in Miami is Norwegian Sky, which the Company recently exercised its option to purchase. Sailing three and four-night cruises from Miami to the Bahamas, Norwegian Sky is vital to Norwegian's fleet as the premier short cruise product in Miami. Said Sheehan, "Along with New York, it is critically important that we maintain a strong foothold in Miami. By homeporting Norwegian Getaway in Miami and taking full ownership of Norwegian Sky, we are demonstrating our continued commitment to being the cruise line of choice in the cruise capital of the world."
All Leisure losses mount on difficult UK cruise market
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 27 July 2012 27 July 2012
All Leisure group, the British owner of three boutique cruise brands, has reported a significant deterioration in first half interims compared with last year.
Net loss widened to £11.2 million from £4.2 million in the first six months of last year. Revenues fell to $24.6 million from £34.8 million. Swan Hellenic’s Minerva underwent major refit and was out of service for part of the review period, which reduced available lower berth nights by 19.3% to 155,000.
For cruising the market continues to be extremely challenging. As a result of the political situation in Greece, regrettably the proposed charter of Alexandervon Humboldt, which will re-enter service as Voyager after a refit, fell through just prior to its commencement and as a result she will not trade prior to entering the fleet in December 2012 as Voyager.
The remaining capacity reflects the difficult UK cruise market and it should also be noted that in view of the discounting that has afflicted the cruise market post Costa Concordia, with the exception of Swan Hellenic, much of these load factors have been achieved at lower yields and, due to fuel, against a higher cost base.
Once again the small Swan Hellenic river cruise programme for Summer 2012 has sold at a satisfactory level and in addition the new Hebridean Island Cruises river programme has been a success.
Discovery will undergo an extended dry dock this winter before returning to service in March 2013 whilst Hebridean Princess will receive her annual winter drydock.
RCCL shares volatile after second quarter interims
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 26 July 2012 26 July 2012
Shares in Royal Caribbean Cruises Ltd (RCCL), the world's second largest cruise shipping group, fluctuated between o1% and slightly more than 2% lower on the day on New York Stock Exchange after the company had published its second quarter interims. The company reported net loss of $3.6 million, with heavier than forecast discounting in Europe as principal culprit.
RCCL says booking trend normalises but Europe shaved 1 percentage point from yield expectation
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 26 July 2012 26 July 2012
Royal Caribbean Cruises Ltd (RCCL), the second largest cruise shipping group in the world, says overall, booking trends have continued to normalize and are now running at levels comparable to prior year's activity. "Larger than expected discounting has been required for the European season which has lowered the midpoint of the company's Constant-Currency Net Yield expectations for the year by approximately one percentage point from the April guidance," RCCL said in a statement.
"It is hard to distinguish how much of the pressure in Europe is connected to the Costa Concordia incident and how much is due to the economic roller coaster," said Brian J. Rice, executive vice president and chief financial officer. Rice continued, "Our sense is that the former is no longer having a major impact on our bookings especially amongst experienced guests. However, the timing of the incident left a big gap during our peak booking period and filling that gap is disrupting our normal booking patterns."
The company forecast that for the full year of 2012, Net Yields are expected to increase 2% to 3% on a Constant-Currency basis and be between flat and up 1% on an As-Reported basis. The expected effect of deployment initiatives and changes to the company's distribution system to Net Yields remains unchanged at +200 basis points for the full year.
"The company's cost outlook for the year has improved and is expected to offset more than half of the decline in revenue. For the full year, NCC excluding fuel are expected to increase approximately 4% on a Constant-Currency basis (approximately 2% As-Reported). Excluding deployment initiatives and changes to the company's distribution system, Constant-Currency NCC excluding fuel are expected to increase less than 1% on a comparable basis to prior year," RCCL said. Taking into account current fuel pricing and currency exchange rates, and the factors detailed above, the company currently estimates 2012 earnings will be in the range of $1.70 to $1.80 per share.
More Articles ...
