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NCLH net profit leapt to $954.8 million in 2018 on strong demand

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 21 February 2019 21 February 2019

Norwegian Cruise Line Holdings, Ltd (NCLH), the world’s third largest cruise shipping group, reported an increase in net profit to $954.8 million last year from $759.8 million in 2017 on strong demand.

Earnings per share amounted to $4.25. Revenues increased to $6.06 billion from $5.39 billion and operating income rose to $1.22 billion from $1.05 billion. In the final quarter of last year, NCLH recorded a rise in net profit to $154.6 million from $98.8 million, while operating profit rose to $209.6 million from $177.2 million.

This increase in full year revenue above the $6.0 billion mark for the first time was primarily attributed to an 8.5% increase in capacity days due to the delivery of Norwegian Bliss in April 2018 and Norwegian Joy in April 2017, as well as strong organic pricing growth across all core markets.  Gross yield increased 3.4%. Net yield increased 3.5% on a constant currency basis and 3.7% on an as reported basis.

Cruise operating expense increased 10.2% in 2018 compared to 2017, primarily due to an increase in capacity days.  Gross cruise costs per capacity day increased 2.7%. Adjusted net cruise cost excluding fuel per capacity day increased 2.6% on a constant currency basis and 2.9% as reported.

Fuel price per metric ton, net of hedges increased to $483 from $465 in 2017.  The Company reported fuel expense of $392.7 million in the period.

“The team at Norwegian Cruise Line Holdings delivered a breakout year in 2018, once again generating industry-leading record financial performance.  Strong global demand for our portfolio of brands, the successful, record-breaking introduction of Norwegian Bliss and the flawless execution of our demand creation strategies drove our fifth consecutive year of double-digit earnings per share growth," said Frank Del Rio, president and chief executive officer, in a statement. 

 

 

RCCL orders sixth Oasis class ship

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 18 February 2019 18 February 2019

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping company, said that it has entered into an agreement with French shipbuilder Chantiers de l'Atlantique to order a sixth Oasis-class ship for delivery in the fall of 2023.

"It is such a pleasure to announce the order of another Oasis-class ship," said Richard D. Fain, Chairman and CEO, Royal Caribbean Cruises Ltd. "This order is a reflection of the exceptional performance of this vessel class and the extraordinary partnership between Chantiers de l'Atlantique and Royal Caribbean Cruises Ltd."

"This is the twenty-third cruise ship that RCCL will be building at our shipyard, and we are especially proud of it," said Laurent Castaing, General Manager, Chantiers de l'Atlantique. "The order reflects the confidence our customer puts on us, based on the exceptional quality of our long-term co-operation between the two companies and on our capacity to bring innovative solutions to meet our customer's expectations."

This order is contingent upon financing, which is expected to be completed in the second or third quarter of this year.

RCCL group including the 50% owned TUI Cruises in Germany and Pulmantur in Spain, in which  it has a 49% stake, operate a combined total of 60 ships with an additional 16 on order as of 31 December 2018.

 

Three milestones for Royal class ships in Fincantieri shipyards, confirmation of LNG newbuilds

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 14 February 2019 14 February 2019

A special event took place today at the Monfalcone shipyard: Fincantieri and Princess Cruises, a brand under Carnival Corporation & plc, celebrated three construction milestones of three Royal class ships, currently in different construction phases.

The day began with the live broadcast of the steel cutting for the sixth and last Royal-class ship, still unnamed, from the shipyard of Castellammare di Stabia (Naples). The section, once completed, will be transported by sea to the yard in Monfalcone, where the ship will be completed in 2022.

Later, in Monfalcone, the keel laying of Enchanted Princess, the fifth unit of the same class to be delivered in 2020, was celebrated. The event was attended, among others, by Jan Swartz, Princess Cruises and Carnival Australia group president, and Luigi Matarazzo, Senior Executive Vice President Merchant Ships Business Unit of Fincantieri.

Finally, the celebration in honor of the recent Sky Princess float out took place. Set to join the fleet by the end of the year, the ship is the fourth unit after Royal, Regal, and Majestic, which all took the sea from the Monfalcone yard, as well. Madrina of this ceremony was Kerry Ann Wright, 2nd officer for Princess Cruises.

At the conversion into contracts of the Memorandum of Agreement announced in July 2018, the partnership between the Monfalcone yard and Princess Cruises will continue with two next-generation cruise ships. These will be the largest built so far in Italy with a gross-tonnage of 175,000 tons, expected to be delivered at the end of 2023 and in spring 2025. The vessels will accommodate approximately 4,300 guests and will be the first of the ship owner’s fleet to be dual-fuel powered primarily by Liquefied Natural Gas (LNG).

Silversea's Manfredi Lefebre invests in Abercombie & Kent luxury and experiental travel brand

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 12 February 2019 12 February 2019

Geoffrey J.W. Kent, Founder, Chairman and CEO of luxury travel company Abercrombie & Kent has formed a strategic partnership with Manfredi Lefebvre d’Ovidio, Chairman of Heritage Group, to jointly acquire 100% of the Abercrombie & Kent Group of Companies S.A. (Abercrombie & Kent). This union brings together two visionaries in luxury travel to further develop Abercrombie & Kent as the premier brand in luxury and experiential travel.

Geoffrey Kent is a true pioneer and visionary in the travel industry. He created the first luxury tented photographic safaris in 1962 in Kenya and has built A&K into the world’s leading luxury and adventure travel company.

Manfredi Lefebvre built Silversea Cruises, created by his father in 1994 with the purchase of two ships, Silver Cloud and Silver Wind, into the leading luxury and expedition cruise line. Recently Royal Caribbean Group (RCL) acquired a 66% stake in Silversea Cruises. A&K is a separate and unique investment by Heritage group, led by Manfredi Lefebvre, and does not involve Silversea.

Since their humble beginnings, both companies have grown to become the dominant players in their respective fields, offering a discerning clientele the ultimate in luxury travel.

Geoffrey Kent and Manfredi Lefebvre have known each other for more than twenty years and also been business partners, having acquired the MV Explorer in 1992.

“Abercrombie & Kent is the finest luxury travel company in the world, and I am honored to be able to partner with Geoffrey Kent to help this remarkable company continue its record growth,” said Manfredi Lefebvre, Chairman of Heritage group. Kent added: “I am very excited to be working with Manfredi. I cannot think of a better or more experienced partner for the next phase of A&K’s growth.”

Heritage group will own 85% of Abercrombie & Kent and Geoffrey Kent 15%. Geoffrey Kent will continue to be Chairman and CEO of the operating company, while Manfredi Lefebvre will become Chairman of Abercrombie & Kent Holding.

The closing is expected to be completed later in the year, subject to customary closing conditions and regulatory approvals.

Barclays Bank Plc served as financial advisor to Heritage group.