Norwegian announces $500 million share repurchase program

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Written by Teijo Niemelä Teijo Niemelä

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Published: 29 April 2014 29 April 2014

Norwegian Cruise Line announced today the authorization by its Board of Directors of a three-year, $500 million share repurchase program. The company may repurchase its ordinary shares from time to time, in amounts, at prices and at such times as it deems appropriate, subject to market conditions and other considerations. Norwegian may make repurchases in the open market, in privately negotiated transactions, in accelerated repurchase programs or in structured share repurchase programs, and any repurchases may be made pursuant to Rule 10b5-1 plans. The program will be conducted in compliance  with applicable legal requirements and will be subject to market conditions and other factors.
 
"Our focus at Norwegian is to drive shareholder value by strengthening our product proposition, honing our strategy of driving demand and increasing returns through our disciplined newbuild and fleet enhancement programs. This share repurchase program complements these initiatives by allowing us to be flexible and opportunistic to repurchase shares at attractive levels," said Sheehan.
 
The program does not obligate Norwegian to acquire any particular amount of ordinary shares and the program may be modified or suspended at any time at Norwegian's discretion. As of March 31, 2014 the company had approximately 205 million ordinary shares outstanding.

DFDS to close historic passenger ferry route due to new sulphur rules

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Written by Teijo Niemelä Teijo Niemelä

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Published: 29 April 2014 29 April 2014

DFDS' historic passenger ferry route between Harwich and Esbjerg has been struggling for a long time with high costs, loss of passengers and freight being switched to road transport. The route is therefore unable to bear the substantial additional costs that a new environmental law will entail. It will close on 29 September 2014. DFDS is now gathering its efforts to secure the major freight route between Esbjerg and Immingham and the many jobs that this route also generates.

September 29 will mark the end of an era and the possibility of sailing directly from Harwich to Esbjerg, Denmark, on the historic ferry route that opened in 1875 with the inauguration of the port of Esbjerg.

The loss of tax-free sales and increasing competition from low-cost airlines mean that passenger numbers have fallen from 300,000 to around 80,000. Transport of industrial cargo between the UK and Denmark has also declined.

DFDS has worked hard to cut costs on the route to make it more competitive. Among other tactics, the route was changed into a combined freight and passenger service, the number of crew on board was reduced, slow steaming was introduced to save fuel, the number of departures was decreased and centralised sales tried to increase passenger numbers with aggressive marketing. "But unfortunately we haven't been able to reduce costs enough to enable the route to bear the very high additional costs of around £2m a year," says DFDS CEO Niels Smedegaard. "This is what the new environmental law and the requirement to use low-sulphur oil will cost based on current oil prices from 1 January 2015.

"The route is of particular historical significance to DFDS so it's a very sad day for us all. Our regrets go to our many passengers who must now see the last passenger ferry route between the UK and Scandinavia close. It's also regrettable that up to 130 jobs on board and ashore will be affected by the closure, even though we are fortunate that we can offer jobs to everyone onboard on other routes."

The Esbjerg-Immingham freight route

DFDS will do everything to ensure freight customers still receive a good service on the freight route between Esbjerg and Immingham. The two big and modern vessels offer a daily departure each way with a crossing time of 18 hours. "This route will also be hit by the substantial extra costs as a result of the new sulphur rules. We therefore need to keep a tight focus on costs to prevent the transfer of freight to road transport that will otherwise become a consequence of the new sulphur rules. We will therefore step up negotiations with employees, partners and other stakeholders to find solutions to reduce costs and increase flexibility. That will help us ensure the route's development as an important transport route between the UK and Denmark - and also as an important employment base," says Niels Smedegaard.

Alternative passenger routes

DFDS Seaways operates a number of passenger routes from the UK to France and Holland, including daily Newcastle-Amsterdam service on the North Sea and our frequent cross Channel services from Dover to Dunkirk and Calais in France, which comprise up to 44 sailings a day. It also operate two ferry routes into France across the Western Channel, which sail from Newhaven to Dieppe and Portsmouth to Le Havre on a daily basis. These routes enable them to continue to provide our passengers with a choice of convenient entry points into Continental Europe and beyond.

Sirena Seaways, the vessel which has served the route since 2003, will be moved to other duties.

Celebrity Cruises unveils new 'firsts' onboard Equinox

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Written by Teijo Niemelä Teijo Niemelä

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Published: 29 April 2014 29 April 2014

Celebrity Cruises has yesterday revealed a series of brand-first enhancements to be introduced onboard Celebrity Equinox. Emerging from a scheduled drydock in Cadiz, Spain on Thursday, May 8, the Solstice Class ship will tout new signature spaces and experiences in time for guests’ summer vacations during Celebrity’s most immersive season in Europe.

Recognized for its unique and rich dining program, Celebrity will add two one-of-a-kind concepts to the array of guest-favorite Solstice Class features onboard:
 
– Gastrobar – A new craft beer and comfort food venue, Gastrobar will offer food and beer enthusiasts over 40 handcrafted boutique beers to choose from in addition to Celebrity's varied collection of wines and tasty cocktails with a twist, all perfectly paired with a menu of elevated bar-fare creations. Gastrobar’s upscale casual surroundings will feature inviting entertainment and music for the complete sophisticated lounge experience. Guests can find the new venue in the space formerly known as Cellar Masters.
 
– Slush – Expanding guests’ ‘cool’ beverage options, Slush – a frozen drinks venue – introduces Celebrity’s curated menu of flavor-rich and fresh frozen cocktails. Slush will feature alcoholic and non-alcoholic cocktails with perfectly balanced ingredients ranging from fresh pressed lemon juice, raspberries, cucumbers and mint to Persian lime, Florida Valencia and Hamlin orange juice with organic agave nectar.

Celebrity Equinox will also expand its retail offerings with "The Studio - Fine Art Photography” – a high-end portrait studio ideal for capturing guests’ friends, family or couples vacation photos; the addition of the ever-popular Michael Kors boutique, first introduced onboard Celebrity Silhouette; enhanced upscale brand products available in stores including Chanel, Clinique, Dior, Lancôme, Estée Lauder, Desigual and UNOde50; and the ship's new Internet lounge, Celebrity iLounge, in the space formerly known as Online@Celebrity.

Starting June 15, 2014, Celebrity Equinox offers four different 7-night Mediterranean sailings, which can be combined into immersive vacation experiences as long as 28 nights, with Rome (Civitavecchia), Italy the only repeat port-of-call in the lineup.

HFW advises Genting Hong Kong on €707 million newbuild cruise ship

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Written by Teijo Niemelä Teijo Niemelä

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Published: 28 April 2014 28 April 2014

A team of HFW lawyers has advised Chinese Dream Limited, a wholly-owned subsidiary of Genting Hong Kong Limited (Genting), on its newbuild cruise ship order with German shipbuilder Meyer Werft GmbH, in a deal worth €707.2 million (approx. HK$7,574 million).

The deal, which was led by Hong Kong Partner Patrick Yeung, involved HFW lawyers from both the Hong Kong and London offices. From the London office, Partner Elinor Dautlich and Senior Associate Alex Sayegh acted for Genting in negotiating the shipbuilding contract, with Partner John Forrester and Associate Gudmund Bernitz advising on the ECA-backed financing of the newbuild.

The Genting Group operates under the principal brand name of Star Cruises. Star Cruises, together with its associate company, Norwegian Cruise Line Holdings Limited is the third largest cruise operator in the world, with a total combined fleet of 20 ships travelling to over 130 destinations, offering approximately 42,000 lower berths. Genting is listed on the Stock Exchange of Hong Kong Limited and is traded on the GlobalQuote of the Singapore Exchange Securities Trading Limited.

HFW Partner Patrick Yeung said of the deal: "The construction of this cruise ship is entirely in line with Genting's long-term strategy to develop its cruise business in the Asia-Pacific market. The new ship will principally serve the mainland China, Hong Kong and Taiwan markets, which are growing in terms of cruising."