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Genting Hong Kong reports sharp rise in cruise operating losses

  • Written by Kari Reinikainen
  • Category: Top Headlines

Genting Hong Kong, the rapidly expanding cruise shipping and shipbuilding group, has reported a sharp rise in operating loss of its cruise operations in the first six months of the year compared to the same period last year.

Operating loss (EBIT) deepened to $102.2 million from a $75.6 million loss in January-June last year. Revenues rose to $471.2 million from $383.9 million, reflecting bigger fleet.

“Passenger ticket revenue and onboard revenue increased significantly for the six months ended 30 June 2017 was mainly due to the full six months’ operation of Genting Dream and Crystal Mozart.

“However, additional depreciation of Genting Dream and Crystal Mozart, higher marketing costs and startup costs of new Crystal river ships resulted in segmental loss of our cruise and cruise-related activities,” the company said in a statement. It owns Crystal Cruises, Dream Cruise and Star Cruises.

In addition, higher overall operating and selling, general and administrative expenses including depreciation and amortisation as a result of full six months’ startup and newbuild activities of the shipyards in Germany in 2017 as compared with its two months’ post-acquisition activities for the six months ended 30 June 2016.

“Higher revenue of non-cruise activities was primarily contributed by revenue from its shipyard activities. The increase in segmental loss of our “non-cruise activities” was mainly due to startup costs of new Crystal AirCruises operations,” Genting Hong Kong said..

The group as a whole reported a first half net loss of $203.1 million, about four times the $54.5 million loss it booked in the first six months of 2016. Revenues rose to $532.5 million from $435.8 million.

The group’s equity and liabilities amounted to $6.1 billion on 30 June, of which $4.9 billion was financed by equity.

TUI reports continued strong cruise demand in Germany and UK as operating profit leaps

  • Written by Kari Reinikainen
  • Category: Top Headlines

TUI AG, the German tour operator that has its main listing in London, has reported a strong rise in the operating profit (EBITDA) of its cruise operations and said that the demand remains strong both in Germany and the UK.

The group’s cruise operations that comprise of a 50% stake in TUI Cruises in Germany plus the fully owned Hapag-Lloyd Kreuzfahren unit in Gernamny and Thomson Cruises in the UK, increased EBITDA by 49.3% to €67.1 million in the third quarter of the group’s financial year. This exceeded the 25.3% rise in turnover of the business, which reached €214.1 million.

In the first nine months of the group’s financial year, EBITDA rose to €147.5 million from €94.3 million, while revenues increased to €560.2 million from €479.9 million.

“TUI Cruises continues to deliver significant growth in its all inclusive German offering, whilst maintaining a strong occupancy and rate performance. Mein Schiff 6 was launched during the quarter, initially based in Kiel (Germany) before moving to New Jersey for itineraries in the USA and Caribbean,” TUI said in a statement.

“Thomson Cruises delivered significant growth in earnings, with continued modernisation of the fleet, including the launch of TUI Discovery 2 in the Mediterranean. There was also a good rate and occupancy performance across the fleet as UK demand for cruise remains very strong,” TUI continued.

Finally, earnings for Hapag-Lloyd Kreuzfahrten increased in the quarter, with overall increased average daily rate and good expedition cruise performance offsetting the lower number of operating days.

 

TUI Cruises. Occupancy rate remained stable at 101.2% in the third quarter year on, while that of Thomson cruises increased by one percentage point to 100.3%. Hapag-Lloyd Kreuzfahrten, however, experienced a drop in the figure to 73/1% from 73.4% in the third quarter of the TUI group’s financial year 2015-16.

Norwegian raises floor of 2017 EPS guidance on accelerating rise of yields

  • Written by Kari Reinikainen
  • Category: Top Headlines

Norwegian Cruise Line Holdings Ltd, the world’s third largest cruise shipping company, has raised the floor of its guidance for result development for the full year on the back on an anticipated firming rise of net yoelds.

The company forecasts earnings per share (EPS) of $3.93 to $4.03 for the full year 2017 compared to a forecast of $3.79 to $4.03 the company made on 10 May, when it published its first quarter interims. EPS in the second quarter rose to $0.87 from $0.64 in the same period last year.

The company raised its guidance for rise in newt yields to 4.0% in as reported terms, an increase from a 2.255 rise on 10 may. Net cruise cosyts, meanwhile, should only rise by 1.75% this yerar, which is half a percentage point less than in the 10 May forecast.

“We are pleased to report strong booking trends across all markets for the back half of 2017 where pricing and occupancy are now up mid-single digits over prior year,” said Wendy Beck, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

“Strong booking volumes and firm pricing have benefitted our booked business for the next four quarters, contributing to the increase of our 2017 full year outlook and further solidifying our expectation for strong earnings growth.”

 

Norwegian Cruise Line Holdings second quarter and first half profit jumps

  • Written by Kari Reinikainen
  • Category: Top Headlines

Norwegian Cruise Line Holdings Ltd, the world’s third largest cruise shipping company, has reported a fiorn rise in net and operating results for the second quarter and the first half on robust demand on key markets.

Net profit in the second quarter rose to $198 million from $145 million in the same period last year. Operating profit reached $275 million from $227 million and revenues rose to $1.34 billion from $1.19 billion.

In the first six months of the year, the net profit increased to $260 million from $218 million, while operating profit rose to $394 million from $358 million. Revenues rose to $2.49 billion from $2.26 billion in the first six months of last year.

“Positive consumer sentiment in North American and key international markets has resulted in a robust booking environment that continues to be one of the strongest in recent history which, combined with our targeted strategic revenue initiatives drove second quarter revenue and yield growth well above expectations,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.

“All three of our brands benefitted from strength across each of their respective markets and contributed to our second quarter earnings beat.”

Gross Cruise Cost increased 10.6% compared to 2016 due to an increase in total cruise operating expense and marketing, general and administrative expenses.

Gross Cruise Costs per Capacity Day increased 4.9%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 2.7% on a Constant Currency basis and 2.6% on an as reported basis primarily due to an increase in marketing, general and administrative expenses partially offset by lower other cruise operating expenses. Fuel price per metric ton, net of hedges was $469, which is commensurate with prior year. The Company reported fuel expense of $86.7 million in the period.

Interest expense, net decreased to $64.2 million in 2017 from $68.4 million in 2016. Interest expense for 2017 reflects an increase in average debt balances outstanding primarily associated with the delivery of new ships and newbuild installments, as well as higher interest rates due to an increase in LIBOR. Interest expense for 2016 included a write-off of $11.4 million of deferred financing fees related to the refinancing of certain of our credit facilities in 2016.

Other net expense amounted to f $5.6 million in 2017 compared to an expense of $10.8 million in 2016. In 2017, the expense was primarily related to losses on foreign currency exchange of $8.1 million, partially offset by other income. In 2016, the expense was primarily related to unrealized and realised losses on fuel derivative hedge contracts and foreign exchange derivative contracts, partially offset by gains on foreign currency exchange.

Costa sells neoClassica, transfers Victoria back to Mediterranean

  • Written by Teijo Niemelä
  • Category: Top Headlines

Awaiting the arrival of new ships ordered for Costa Cruises and Costa Asia, the Italian company has decided to reposition Costa Victoria to the Mediterranean and to sell Costa neoClassica.

As of 30 march 2018 Costa Victoria will return to regular cruises in the Mediterranean. The ship has been operating mainly in China since 2012 offering cruises dedicated to the local market. During the summer 2018 she will offer a 7-night itinerary dedicated to the beaches and entertainment of the Balearic Islands, originally planned for Costa neoRiviera, with stops in Savona, Olbia, Minorca, Ibiza (overnight), Palma de Mallorca and Tarragona (overnight). The itinerary will offer guests the opportunity to enjoy the unique experience of PortAventura World, the largest destination resort in Europe with the Ferrari Land theme park.

The decision regarding Costa Victoria has been taken to maintain the offer in a highly popular region of the Mediterranean unchanged. Awaiting the arrival of four new ships starting from 2019, which will permit Costa Cruises to grow further in Europe and Asia (two ships are for the Costa Cruises market and two for Costa Asia), the Italian company has accelerated the renewal of its fleet, formalizing the sale of Costa neoClassica, one of its longest-serving ships. As of March 10 2018, once its schedule of cruises between India and the Maldives is complete, Costa neoClassica will no longer be part of the Costa fleet.

From June 2018, Costa neoRiviera will then replace Costa neoClassica, offering 7-night itineraries dedicated to the Greek islands, with Bari as the only home port.

Before returning to operate in the Mediterranean, Costa Victoria will perform scheduled dry-dock refurbishing works at the Chantier Naval de Marseille.

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