NCL Corporation reports 18% rise in third quarter net profit

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Category: Top Headlines

Published on Tuesday, 01 November 2011 09:19

Written by Kari Reinikainen

NCL Corporation, parent company of Norwegian Cruise Line and NCL America, has reported a rise in net profit to $110.1 million in the third quarter from $93.0 million in the same period last year, while revenues increased to $666.6 million from $634.1 million.

Net yield increased 3.8%, mainly on higher ticket prices. “Benefits realized from ongoing business improvement initiatives coupled with non-recurring expenses in the third quarter of 2010 related to the launch of Norwegian Epic resulted in a decrease in Net Cruise Cost per Capacity Day of 2.0%, or 2.8% on a Constant Currency basis, after considering a 17.9% increase in the price of fuel to $598 per metric ton from $507 in 2010.  Excluding fuel expense, Net Cruise Cost per Capacity Day decreased 5.3%, or 6.2% on a Constant Currency basis,” the company said in a statement.

 "A strong summer season resulted in solid top-line growth in the quarter," said Kevin Sheehan, President and Chief Executive Officer of Norwegian Cruise Line. "Pricing was up across the fleet despite several voyages being impacted due to tropical weather conditions in the Northeast and Caribbean," continued Sheehan.

Interest expense, net of capitalized interest, increased to $49.9 million in the quarter compared to $46.2 million in 2010 due to higher average interest rates in the period resulting from the issuance of $250 million in senior notes in November of 2010. 

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