Restructuring costs of Vard hit otherwise strong Fincantieri
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 November 2019 08 November 2019
Fincantieri, the listed Italian shipbuilder that is a major builder of cruise ship, had a strong first nine months of the year, but restructuring the Vard group in Norway that is now fully owned by the Italian company, resulted in costs, the company said in a statement.
The process of full integration of Vard that became fully owned by Fincantieri Group at the end of last year and its and alignment to the best practices continued. A change in management followed, together with the launch of a reorganisation process. In particular, a review of the industrial management systems and of the economic planning of both Cruise and Offshore and Specialized Vessels projects was launched.
“Such initiatives, supported by the Italian personnel of the Group, led on the one hand to the recovery of the production delays, which would have impeded the on-time delivery of the units, and to the review, on the other hand, of the estimated costs at completion which were included within the results as of September, 30 2019, including the higher costs occurred to recover the delays on the ships in delivery. Further analysis on the industrial management systems and on the economic planning of projects are still ongoing,” Fincantieri said.
With regards to the initiatives already completed, the exit from the business of small fishery and aquaculture support vessels, which in total impacte the EBITDA of the first nine months of 2019 negatively by €19 million and the disposal of Aukra shipyard were approved.
Also, the disposal of Brevik, a second Norwegian shipyard was authorised. Moreover, the conversion of the Romanian Tulcea shipyard, which is now working at full capacity on Cruise shipbuilding is in its final stages of completion.
Giuseppe Bono, Fincantieri's Chief Executive Officer, said: “Unfortunately, the Group results are impacted by the negative contribution of VARD, which suffers from the persisting effect of the deep crisis of its reference market of the Oil & Gas, and from the costs occurred following its entrance into the cruise shipbuilding market. The reorganization of Vard is a priority for the entire Group and we dedicated to this initiative some of our best Italian employees.”
However, revenues in Shipbuilding division of the group rose tio 3.68 billion in the nine months to the end of September from €3.32 billion year on. EBITDA fell to €250 million from €270 million and EBITDA margin to 7.8% from 9.1%.
NCLH says 2020 demand, occupancy and pricing outpace present year
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 November 2019 08 November 2019
The outlook for 2020 is strong for Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group as demand, occupancy and pricing outpace present year, its top officer said.
“We are on track to deliver yet another record-breaking year in 2019, and the positive momentum for our global brands is carrying over into 2020, as demand, occupancy and pricing continue to outpace 2019 record levels, buoyed by the addition of Norwegian Encore and Seven Seas Splendor,” said Frank Del Rio, president and chief executive officer of NCLH, in a statement.
“The underlying fundamentals of our business remain as strong as ever, allowing us to post another solid quarter of financial results despite the impacts from Hurricane Dorian. The top line exceeded expectations and we recorded the highest quarterly revenue in our history
“We accelerated returns to shareholders to take advantage of current valuations and executed $150 million in share repurchases in the quarter, bringing our total capital returns since January 2018 to $1 billion,” said Mark A. Kempa, executive vice president and chief financial officer.
NCLH third quarter net income slips to $450.6 million as operating expenses rise
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 November 2019 08 November 2019
Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported a slight fall in third quarter net and operating income despite an increase in revenues as operating expenses increased.
In the third quarter, net income fell to $450.6 million from $470.4 million year on, while operating income also fell, to $511.7 million from $550.3 million. Revenues increased to $1.91 billion from $1.86 billion.
Cruise operating expenses increased to $990.7 million from $928.9 million and other operating expenses to $411.4 million from $379.1 million, year on.
For the first nine months of the year, NCLH reported a rise in net income to $808.9 million from $800.2 million but operating income fell to $978.1 million from $1.00 billion. Revenues rose to $4.91 billion from $4.67 billion.
GAAP equaled earnings per share (EPS) of $2.09 in the third quarter compared to $2.11 in the prior year. “The Company generated Adjusted Net Income of $481.5 million or Adjusted EPS of $2.23 compared to $506.4 million or $2.27 in the prior year. These results include a $0.06 per share adverse impact from voyage cancellations, itinerary modifications and relief efforts related to Hurricane Dorian,” NCLH said in a statement.
“Revenue increased 3.0% to $1.9 billion on a decrease in Capacity Days of 1.8% compared to slightly less than $1.9 billion in 2018. This increase was primarily due to an increase in Net Yield driven by the repositioning of Norwegian Joy to North America, robust onboard spending along with strong growth in organic pricing across all core markets. Gross Yield increased 4.8%. Net Yield increased 3.9% on a Constant Currency basis and 3.3% on an as reported basis,” NCLH said.
Total cruise operating expense increased 6.7% in the third quarter of 2019 compared to 2018, primarily due to continuing effects from the redeployment of Norwegian Joy during the second quarter of 2019 and incremental direct costs related to air promotions. Gross Cruise Costs per Capacity Day increased 8.9%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 11.0% on a Constant Currency basis and 10.2% on an as reported basis, the company stated.
More Articles ...
