Norwegian Cruise Line Holding, Ltd (NCLH), the world’s third largest cruise shipping group that traces its origins to 1966, has reported a record quarterly profit in the third quarter of this year.
Net profit rose to $342.2 million from $251.8 million in the same period last year, while revenues increased to $1.48 billion from $1.28 billion.
In the first nine months of the year, the profit reached $560.8 million from $388.8 million a year earlier and revenues rose to $3.75 billion from $3.31 billion.
"Fast forward fifty years, where we have reached yet another milestone, reporting the highest single quarter revenue and earnings in our history, bolstered by the addition of Norwegian Escape, Oceania Cruises' Sirena and Seven Seas Explorer to our fleet," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.
Gross Cruise Cost increased 10.5% in 2016 compared to 2015 due to an increase in total cruise operating expense as a result of an increase in Capacity Days along with an increase in marketing expense. Gross Cruise Costs per Capacity Day decreased 3.0%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 1.7% on both a Constant Currency and as reported basis primarily due an increase in marketing expenses.
Fuel price per metric ton, net of hedges decreased 11.5% to $500 from $565 in 2015. The Company reported fuel expense of $86.3 million in the period. In addition, a loss of $2.5 million was recorded in other expense in 2016 related to the ineffective portion of the Company's fuel hedge portfolio due to market volatility.
Interest expense, net increased to $60.7 million in 2016 from $49.8 million in 2015 primarily due to an increase in average debt balances outstanding primarily associated with the delivery of Norwegian Escape in October 2015 and Seven Seas Explorer in June 2016 as well as slightly higher interest rates due to an increase in LIBOR rates, the company said in a statement.