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.