Norwegian’s operating income continued to improve in latest quarter

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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

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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.