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Norwegian expects 2017 adjusted EPS to climb to $3.75-$3.85 bracket

  • Written by Kari Reinikainen

Norwegian Cruise Line Holdings, Limited (NCLH), the world’s third largest cruise shipping group, expects its 2017 adjusted earnings per share (EPS) to climb to the bracket of $3.75 to $3.85 from $3.41 in 2016.

"With our strong booked position and continuing momentum we look forward to another year of solid financial performance, including double-digit Adjusted EPS growth in 2017," said Wendy Beck, executive vice president and chief financial officer of NCLH.

"In addition, this year marks another key milestone with our much anticipated debut into the Chinese cruise market with the delivery of Norwegian Joy," she said in a statement.

"This solid revenue and earnings trend is expected to continue in 2017 as we are now in the best booked position in our company's history with pricing slightly above the prior year," said Frank Del Rio, President and CEO.

Norwegian group 2016 net profit rises 48% to $637 million

  • Written by Kari Reinikainen

Norwegian Cruise Line Holdings, Limited (NCLH), the world's third largest cruise shipping group, has reported a strong rise in 2016 net profit ad the company sees a strong start for the present year.

Group net profit rose to $637.1 million in 2016 from $427.1 million in the previous year as revenues climbed to $4.87 billion from $4.35 billion.

In the final quarter, the profit reached $72.2 million compared to $38.3 million in the same period in 2015, while revenues increased to $1.13 billion from $1.04 billion.

Earnings per share (EPS) reached 2.78 last year, an increase from $1.86 in 2015, in GAAP terms.

“(The year 2016 marks another record year of earnings, continuing our track record of solid EPS growth, which has grown fivefold since 2013, the year of our initial public offering," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.

"This solid revenue and earnings trend is expected to continue in 2017 as we are now in the best booked position in our company's history with pricing slightly above the prior year," continued Del Rio.

Adjusted net revenue increased 12.7% to $3.8 billion compared to $3.3 billion in 2015.  Gross yield increased 0.7% and Adjusted net yield increased 1.8% on a constant currency basis and 1.2% on an as reported basis primarily due to improved pricing. 

Gross cruise cost increased 9.5% due to an increase in total cruise operating expense as a result of an increase in capacity days along with an increase in marketing, general and administrative expenses. 

Gross cruise costs per capacity day decreased 1.7%.  Adjusted net cruise cost excluding fuel per capacity day increased 1.7% on a constant currency basis and 1.5% on an as reported basis.

The company reported fuel expense of $335.2 million in the period.  In addition, a loss of $16.1 million was recorded in other income (expense), net in 2016 related to the ineffective portion of the Company's fuel hedge portfolio due to market volatility.


Carnival, CSSC and Fincantieri in two plus four ship firm deal

  • Written by Kari Reinikainen

Carnival Corporation & plc, China State Shipbuilding Corporation (CSSC) and Fincantieri have signed a firm memorandum of understanding to build two ships, with an option for another four, in China for the local market, Fincantieri said in a statement.

Fincantieri and CSSC have formed a joint venture company called Cruise Development Company, Limited and the agreement entails this company together with a joint venture Carnival and CSSC have established, plus Shanghai Waigaoqiao Shipbuilding Co., Ltd (SWS), which is part of the CSSC group.

The first ship is expected to enter service in 2023. This is a year later than what the parties have anticipated so far and three years later than at the time of the establishment of the Carnival’s joint venture with its Chinese partners in 2015.

In the autumn, the parties agreed in principle to build these vessels, which were described at the time as 133,500 gross tons each. The tonnage is equal to that of Carnival Vista class ships that Fincantieri is building in Italy.

Fincantieri, CSSC and Carnival signs contract to build two ships in China

  • Written by Teijo Niemelä

Fincantieri, China State Shipbuilding Corporation (CSSC) and Carnival Corporation & plc signed a binding Memorandum of Agreement (MoA) for the construction of two cruise ships, with an option for additional 4, the first units of the kind ever built in China for the Chinese market.

The parties signed the MoA on behalf of the joint venture between Fincantieri and CSSC Cruise Technology Development Co., Ltd (CCTD), of the joint venture between Carnival Corporation and CSSC, and of the shipyard Shanghai Waigaoqiao Shipbuilding Co., Ltd (SWS).

The agreement, subject to several conditions and of an approximate value of $1.5 billion for the first two ships, updates the terms announced last September 23 between the parties, CIC Capital, CCTD and SWS, aimed at developing and supporting the growth of the Chinese cruise industry.

The historic MoA was signed by the CEO of Fincantieri, Giuseppe Bono, by Michael Thamm, CEO of Carnival Asia and Costa Group, and by Wu Qiang, President of CSSC. The signing ceremony took place today at the Great Hall of the People in Beijing, on the occasion of the 4th Italy-China Business Forum, attended by Italian President Sergio Mattarella and Chinese President Xi Jinping.

The new ships will be built at the SWS yard, a facility of CSSC Group. The design will be tailored for the specific tastes of the Chinese travelers and for the new Chinese cruise brand of the joint venture between Carnival Corporation, CSSC and CIC Capital, which will also operate the units. The first delivery is expected in 2023.

Giuseppe Bono, CEO of Fincantieri, stated: “Looking at the global scenario means trying to widen one’s boundaries, laying the foundations to further boost business prospects and access more complex markets. It is not possible to maintain a competitive presence in the medium and long term without such a commitment. We therefore believe that today’s agreement is an example of industrial partnership that not only reaffirms our leadership in the cruise industry, but also creates a virtuous system among the two countries."

“We are proud to be able to order the first China-built cruise ships and play a leadership role in developing cruise shipbuilding capabilities for the first time in China, which represents another important milestone in building a sustainable and prosperous cruise industry, and demonstrates our commitment to helping China become a leading cruise market as part of its five-year economic development plan,” commented Arnold Donald, CEO of Carnival Corporation.

Fred. Olsen Cruise Lines enjoyed strong 2016

  • Written by Kari Reinikainen

Fred. Olsen Cruise Lines, the UK based destinational cruise shipping company, enjoyed a strong 2016, with full year profit significantly higher than in the previous year and the final quarter loss markedly lower than that in 2015.

Operating revenues fell a fraction, to NOK2.07 billion from NOK2.09 billion in 2015, but net profit rose to NOK163 million from NOk71 million and operating margin (EBITDA) improved by one percentage point to 15%, show figures released by its parent company Bonheur ASA, a listed company that is controlled by the Olsen family.

In the final quarter of 2016, the company made a loss NOK27 million compared to a NOK70 million loss in the last three months of 2015m,while revenues fell to NOK401 million from NOK433 million. Operating margin became positive by 4% after being negative by 2% in the last quarter of 2015. Fred. Olsen Cruise Line is free of debt.

Bonheur said that the depreciation of the British pound against the dollar had raised costs as these are largely in the dollar, but added that bookings had been strong and net ticket income per diem had risen by 10% in the final quarter



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