Superior efficiency and reliability of a new ship ordered by Saga Cruises, part of the listed British lifestyle company Saga plc, will be the key driver of profit growth in the group's cruise operations, CEO Lance Bachelor said in a webcast presentation this morning.
The company would not seek much higher revenues per passenger than on the current ships, although the 55,900 gross ton newbuilding that will enter service in 2019 will carry more passengers than the group's two existing ships, which does means an increase in revenues. through higher volume The new ship, which will be delivered in 2019, will carry fewer than 1,000 passengers.
"But margins per passenger day will be much higher due to better reliability and fuel efficiency. There will be a significant margin improvement," Bachelor said in the presentation.
Jonathan Hill, group cfo, said that the new ship would mean a significant EBITDA growth. The one plus one option contract with Meyer Werft that was announced earlier today will mean that Saga Cruises' two existing ships, the 37,012 gross ton Saga Sapphire and the 18,859 gross ton Saga Pearl II would be withdrawn from service as a new vessel enters service. He did not comment on which one of the 1981 built vessels would go first.
The company did not disclose the price of the newbuilding, but Hill said the company would use asset backed finance with loans covering 80% of the price of the ship.