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Norwegian expects double digit 2016 and 2017 EPS growth despite “headwinds”

  • Written by Kari Reinikainen

Norwegian Cruise Line Holding, Ltd (NCLH), the world’s third largest cruise shipping group, expects double digit earnings per share (EPS) growth in this year and in 2017 despite events that are dampening the outlook to some degree

"We are on track to deliver robust double-digit growth in Adjusted EPS in 2016, despite headwinds from geopolitical events earlier in the year which dampened demand for Mediterranean sailings," said Wendy Beck, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

"Looking to the first half of 2017, where deployment is weighted to Caribbean sailings, advanced bookings are ahead of prior year's record levels at higher prices, while an early look at the full year shows occupancy commensurate with prior year at this same time at slightly lower prices,” she said in a statement.

“Recent significant weakening of certain foreign currencies, primarily the British Pound, against the U.S. dollar, combined with an increase in fuel prices have placed pressure on expectations for the coming year. Despite these headwinds, we still anticipate delivering double-digit growth in Adjusted EPS in 2017."

NCLH reports record quarterly profit of $342.2 million

  • Written by Kari Reinikainen

Norwegian Cruise Line Holding, Ltd (NCLH), the world’s third largest cruise shipping group that traces its origins to 1966, has reported a record quarterly profit in the third quarter of this year.

Net profit rose to $342.2 million from $251.8 million in the same period last year, while revenues increased to $1.48 billion from $1.28 billion.

In the first nine months of the year, the profit reached $560.8 million from $388.8 million a year earlier and revenues rose to $3.75 billion from $3.31 billion.

"Fast forward fifty years, where we have reached yet another milestone, reporting the highest single quarter revenue and earnings in our history, bolstered by the addition of Norwegian Escape, Oceania Cruises' Sirena and Seven Seas Explorer to our fleet," said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.

Gross Cruise Cost increased 10.5% in 2016 compared to 2015 due to an increase in total cruise operating expense as a result of an increase in Capacity Days along with an increase in marketing expense. Gross Cruise Costs per Capacity Day decreased 3.0%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 1.7% on both a Constant Currency and as reported basis primarily due an increase in marketing expenses.

Fuel price per metric ton, net of hedges decreased 11.5% to $500 from $565 in 2015. The Company reported fuel expense of $86.3 million in the period. In addition, a loss of $2.5 million was recorded in other expense in 2016 related to the ineffective portion of the Company's fuel hedge portfolio due to market volatility.

Interest expense, net increased to $60.7 million in 2016 from $49.8 million in 2015 primarily due to an increase in average debt balances outstanding primarily associated with the delivery of Norwegian Escape in October 2015 and Seven Seas Explorer in June 2016 as well as slightly higher interest rates due to an increase in LIBOR rates, the company said in a statement.

Lindblad third quarter net profit trebles to $7.6 million

  • Written by Kari Reinikainen

Lindblad Expeditions Holdings, Inc. , the US based global provider of expedition cruises and adventure travel experiences, said its third quarter net profit almost trebled to $7.6 million on the same period last year.

Group net profit reached $7.6 million from $2.9 million while revenues rose to $70.7 million from $58.6 million.

In the first nine months of the year, the profit fell to $10.3 million from $20.5 million, when a $5 million extraordinary income item had klifed the bottom line. Revenues rose to $186.2 million from $163.5 million.

Sven-Olof Lindblad, President and Chief Executive Officer, said "Lindblad's ability to expand our Net Yield and maintain occupancy despite current headwinds speaks to the strength of our operating model and the appeal of our differentiated brand.”

“ While quarterly results can fluctuate depending on a variety of planned and unplanned factors, we remain confident in the long-term growth opportunity we have in front of us as we introduce new vessels and expand our itineraries to further capitalize on the growing demand for high quality, immersive expedition travel," h continued

Lindblad segment Net Yield increased 8% in the third quarter to $1,008 as compared to the same period a year ago, primarily as a result of increased pricing. The decline in Available Guest Nights was mainly due to the planned repositioning of certain vessels, as well as from the cancellation of a voyage on the National Geographic Orion for unplanned maintenance. Occupancy increased to 90.8% compared with 90.5% in the third quarter of 2015, the company said in a statement.


Crystal Cruises postpones Exclusive class launch by three years to 2022

  • Written by Kari Reinikainen

Crystal Cruises, the Los Angeles based luxury cruise unit in the Genting Hong Kong group, says it has postponed the introduction of the first 117,000 gross ton Exclusive class ship by three years to 2022 and introduce three 22,500 gross ton expedition mega yachts before that ship.

"In the first quarter of 2022, Crystal will introduce the first Crystal Exclusive Class™ ocean ship that will set a new standard of luxury travel with signature features and guest amenities, and boast luxurious Crystal Residences, allowing travelers to literally call a Crystal ship home,” the company said in a statement.

On the website the launch of the first of planned three Exclusive class ship is given as the autumn of 2019. All the company’s vessels, including river yachts, are to be buiult at the MV-Werften shipyard in Germany that Genting Hong Kong owns.

Crystal said in the statement it would introduce at least one new brand experience per year through 2022, with a newly developed timeline as follows:

2017: Crystal Bach and Crystal Mahler launch; Crystal AirCruises takes flight; Crystal Symphony enhancements and Crystal Luxury Air debuts second Global Express Jet.

2018: Crystal Debussy and Crystal Ravel launch; Crystal Serenity enhancements.

2019: Crystal Endeavor expedition mega-yacht launch.

2020: Second Crystal expedition mega-yacht to launch.

2021: Third Crystal expedition mega-yacht to launch.

2022: Crystal Exclusive Class™ with Crystal Residences debuts

RCCL says next year's inventory booked ahead of last year; on track with Double-Double

  • Written by Kari Reinikainen

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, said its 2017 inventory has sold better than what was the situation regarding this year 12 months ago and that it is on track with its Double-Double goals.

“At this time, 2017 itineraries are booked ahead of last year in both rate and volume. New ships including Harmony of the Seas and Ovation of the Seas are seeing strong trends, supporting a solid outlook for 2017,” the company said in a statement.

This refers to the multi-year Adjusted EPS (earnings per share) and Return on Invested Capital (ROIC) goals RCCL publicly announced in 2014 and are seeking to achieve by the end of 2017.

Under this programme, RCCL is targeting Adjusted EPS of at least $6.78 by the end of 2017, which is double its 2014 Adjusted EPS of $3.39. The company is also targeting ROIC of at least 10% also by the end of 2017.

"Next year marks the finish line for the Double-Double and we are looking forward to a strong finish to this chapter in our continuous journey of rising shareholder returns," said Richard D. Fain, chairman and chief executive officer.

"New hardware, continued strength onboard, along with continued cost discipline and a highly motivated team over 65,000 strong is proving to be a winning combination," he said in a statement.



CBR 1/2016 contents