Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reduced the midpoint of its guidance for adjusted full year 2019 earnings per share (EPS) by $0.40 due to Cuba and technical problems that hit Norwegian Pearl earlier in the summer.

“Full year adjusted EPS is now expected to be in the range of $5.00 to $5.10, inclusive of a $0.45 adverse impact from the abrupt change in federal regulations surrounding cruises to Cuba and a $0.07 impact from a technical issue on Norwegian Pearl in July,” NCLH said in a statement. 

NCLH’s previous forecast was from May, when the company said its adjusted EPS is expected to be in the range of $5.40 to $5.50, despite an impact of approximately $0.10 from higher fuel prices and unfavorable foreign exchange rates.

The company noted that without these headwinds, the company’s outlook would have exceeded its May guidance primarily as a result of revenue outperformance in the second quarter, coupled with a stronger revenue outlook for the back half of the year.

“The combination of the continued robust demand environment, the building excitement for the upcoming launches of Norwegian Encore and Seven Seas Splendor and the march towards achieving our Full Speed Ahead 2020 Targets is setting up 2020 to be another milestone year,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

“We remain committed to maximizing shareholder returns and believe our current valuation does not reflect the strong core fundamentals of our business; therefore, we will be focusing our capital allocation strategy on opportunistic share repurchases,” he added.