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Norwegian group on track to reach EPS of $5.00 in 2017 - del Rio

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 November 2015 03 November 2015

“The momentum from the initiatives we have implemented is building and is reflected in the solid foundation of bookings which, coupled with the powerful earnings growth from our existing fleet and upcoming ship additions, have positioned 2016 to be a breakout year,” said Frank Del Rio, President and CEO of the company, in a statement.

“With a clear path to significant earnings growth, we are confident in our targets of $5.00 earnings per share in 2017 and growing our already industry leading return on invested capital to 14% by 2018,” he continued.

The delivery of Norwegian Escape in October marks the latest chapter in the Company’s measured newbuilding programme which provides ship deliveries each year through 2019.

“The company will take delivery of two additional ships in 2016. Sirena will join Oceania Cruises in March with her first sailing in late April following a 35-day, multi-million dollar upgrade and refurbishment. Seven Seas Explorer will join the Regent fleet in the third quarter,” the company said.

Norwegian narrows 2015 EPS guidance to $2.85 to $2.90 per share

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 November 2015 03 November 2015

Norwegian Cruise Line Holdings (NCLH), the world’s third largest cruise shipping group, says it has narrowed its earnings per share (EPS) guidance to $2.85 to $2.90 per share in light of strong net yield performance in the third quarter. Its previous forecast was $2.80 to $2.90 per share.

“As a result of strong Net Yield performance the Company has increased its full year 2015 Adjusted Net Yield guidance. Adjusted Net Cruise Cost Excluding Fuel is expected to modestly increase due to the aforementioned timing of certain expenses. As a result of these changes, the Company narrowed the range and raised the midpoint of its full year 2015 Adjusted EPS guidance which is now $2.85 to $2.90,” the company said in a statement.

“The alignment of revenue management strategies across our three brands has resulted in a lengthening of the booking curve, enabling us to drive higher pricing, particularly on the Norwegian brand,” said Wendy Beck, executive vice president and chief financial officer of Norwegian Cruise Line Holdings. “This stronger pricing is contributing to robust earnings growth of approximately 27% in 2015, and brings our three year compound annual growth rate to over 40% since our initial public offering in 2013,” continued Beck.

Norwegian Cruise Line Holdings reports rise in interims on strong Western Hemisphere markets

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 November 2015 03 November 2015

Norwegian Cruise Line Holdings, the world’s third largest cruise shipping company, has reported a rise in third quarter and nine month interims on strong demand cruises in the Western Hemisphere.

Group net profit rose to $251.8 million in the third quarter from $201.0 million in the same period last year, Revenues increased to $1.28 billion from $907.0 million. All figures were also boosted by the acquisition of Prestige Cruise Holdings late last year.

In the nine months to 30 September, net profit rose to $388.8 million from $363.9 million, while revenues increased to $3.30 billion from $2.34 billion.

On a combined company basis, which compares current results against the combined results of Norwegian and Prestige in the prior year, Adjusted Net Yield increased 2.2%, (4.7% on a Constant Currency basis), reflecting improved pricing in the quarter which was driven by strength in the Caribbean, Bermuda and Alaska itineraries, partially offset by softness in certain Eastern Mediterranean itineraries.

“The continued momentum from our revenue enhancement strategies resulted in net yield growth of approximately 5% driving strong earnings performance in the quarter,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings (NCLH) in a statement.

 “What is most impressive is that this yield performance was driven purely by organic growth, demonstrating that robust topline growth need not be predicated solely on the addition of new ships to our fleet.”

Adjusted earnings per share (EPS) increased 22% over prior year to $1.35and was at the top end of the Company’s guidance range, benefiting from solid Net Yield performance. On a GAAP basis, net income was $251.8 million, or $1.09 per share compared to $201.1 million or $0.97 per share in the prior year.

Adjusted Net Yield improved 19.8% (22.7% on a Constant Currency basis) mainly due to the acquisition of Prestige Cruise Holdings, which occurred in the fourth quarter of 2014.

Carnival and ABB in $60 million Azipod deal

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 November 2015 03 November 2015

ABB, the Swiss-Swedish power and automation technology group, has won a repeat order worth $60 million to deliver complete electrical power plants and Azipod XO fuel-saving electric propulsion systems for Carnival Corporation´s two new cruise vessels, ABB said in a statement.

ABB`s delivery will also include generators, main switchboards, a remote control system and distribution transformers. Azipod propulsion is a gearless steerable propulsion system where the electric drive motor is in a submerged pod outside the ship’s hull. It improves safety, fuel efficiency and is the most environmentally friendly propulsion system.

The ships, to be built by Fincantieri shipyard in Italy, will sail under Carnival Corporation’s brands Holland America Line and Carnival Cruise Line. The new vessel for Holland America Line will be a sister ship to Koningsdam, currently under construction at the Fincantieri shipyard. The vessel will have a gross tonnage of 99,500 tons, accommodate up to 2,650 passengers and will be delivered in Q4/2018. Carnival Cruise Line´s new, 3,954-passenger vessel will be a sister ship to Carnival Vista and it is the 26th ship in the cruise operator’s fleet. The delivery for this new ship is scheduled for Q1/2018.

"These beautiful new ships on order from Fincantieri signify our ongoing commitment to provide the best possible guest experience across our industry-leading brands," said Arnold Donald, president and CEO of Carnival Corporation. "New ships with the latest features, accommodations and innovations really bring the modern cruise experience to life and will help us continue to grow new demand for cruising."

“We are pleased to continue our collaboration with Fincantieri, which is known as one of the world’s leading cruise ship builders. Longstanding customer relationships with leading shipyards such as Fincantieri are testament to our continued dedication to quality and customer value,” says Heikki Soljama, managing director for ABB’s Marine and Ports business.

The collaboration between ABB and Fincantieri spans over 25 years: ABB’s first electric propulsion delivery to Fincantieri was for a Carnival cruise ship in 1990. Since then, 14 ships built by Fincantieri have been equipped with ABB’s Azipod propulsion. Twenty-four of Carnival Corporation’s ships are equipped with Azipod propulsion.