Top Headlines

Norwegian reports solid improvement in final quarter and full year 2015 results

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 23 February 2016 23 February 2016

Norwegian Cruise Line Holdings, the world’s third largest cruise shipping group, has reported a solid improvement in its final quarter and full year 2015 results.

Group net profit amounted to $38.2 million in the fourth quarter of last year, compared to a loss of $25.6 million a year earlier. Revenues rose to $1.03 billion from $788.9 million.

“Constant Currency Adjusted Net Yield on a Combined Company basis increased 7.4% (5.9% as reported), driven primarily by strong growth in pricing from same fleet operations as well as a partial quarter benefit from the addition of Norwegian Escape. Adjusted Net Yield on a Constant Currency basis increased 16.9% (15.2% as reported),” the company said in a statement.

For the full year 2015, Norwegian reported a net profit of $427.1 million, up from $338.4 million in 2014. Revenues rose to $4.35 billion from $3.13 billion.

“Increase in Constant Currency Adjusted Net Yield on a Combined Company basis of 3.7% (2.0%, as reported), driven primarily by strong pricing performance from same fleet operations. Adjusted Net Yield increased 20.0% on a Constant Currency basis (18.0% as reported),” Norwegian said, adding that a 9% adjusted return on invested capital exceeded weighted average cost of capital.

MedCruise names Kristijan Pavić new President

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 15 February 2016 15 February 2016

Kristijan Pavić has been named today as the new President of MedCruise, the association representing cruise ports in the Med and its adjoining seas.

The change is taking place following the decision of the outgoing President Carla Salvadό to leave her office at Port of Barcelona authority, which was the MedCruise port that Salvadό represented at the Board of the Association.

Carla Salvadό will from today be professionally associated with another MedCruise member and thus continue to advance cruise activities under a new role. The Port of Barcelona will retain a post at the MedCruise Board of Directors, represented by another person that the port will appoint over the next days.

Since 2014, Kristijan Pavić was serving as Senior Vice President of the Association, representing the port of Dubrovnik.

Following his nomination Kristijan Pavić said: “All ports in the Med and me personally are committed to continue the excellent MedCruise work of the recent past, aiming to advance the scopes of the Association. MedCruise is celebrating 20 years of serving the needs of the ports and the cruise industry in the region, with a membership that spans in 20 countries. I am honoured to assume the Presidency of this vibrant association, dedicated to work in order to achieve a sustainable and responsible growth of cruise activities in the Med and its adjoining seas. I would like to express my gratitude to Carla Salvadό for the leadership and her excellent work throughout her Presidency, and I look forward to work with a devoted family of more than 100 cruise ports and 35 associates in order to continue the same successful and beneficial for all strategy”.

Kristijan Pavić is the Deputy General Manager of Dubrovnik Port Authority. Since 2014 he has been Senior Vice President of MedCruise His professional development has so far brought him the variety of experience within the cruise industry. Having graduated the maritime science on Split University, he was working as cruise company employee onboard ship. In 2006 he became the General Manager of Dubrovnik County Port Authority, and since 2012 he has been performing the duty of Dubrovnik Port Authority General Manager.

He has been professionally active in cruise destination management, the enhancement of the cooperation between ports and cities, as well as the development of partner relations between cruise market participants, especially within the Adriatic Region.

Odo – Cruise Business Commentary: United States might be commercial success and huge technical challenge

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2016 04 February 2016

The plans of Crystal Cruises to reintroduce the 1952 built Trans-Atlantic liner United states back to the sea after major rebuilding probably are commercially viable, but the technical challenges to rebuild the ship may be even more formidable.

As built, the ship was powered by a massive Westinghouse steam turbine set, which was fed by eight boilers. The power plant reportedly delivered 241,785 shp and gave the vessel a trial sped of 41.77 knots.

However, such a system is enormously fuel hungry and Crystal Cruises would most likely to be forced to replace it with a more contemporary power plant. This is a major cost item.

A modern power plant would be much lighter than the original one, and although none of our team members is a naval architect, it must be fair to assume that this would impact stability of the vessel – even more so as rendering of Crystal Cruises’ plans show additional decks in the superstructure. They mean more weight.

The ship’s hull has outstanding fine lines, quite unlike any other modern passenger ship with the exception of Queen Mary 2, the Cunard Line flagship.

This means that the ship is an excellent sea boat – ample evidence of that must have accrued during the 17 years it served on the north Atlantic. However, it will probably also mean limitations to additional weight at least in the forward part of the vessel from stability points of view.

What is certainly means that modular cabins that are built ashore and slotted in on board could not be used in the hull. These would have to be built on the spot, on board. This is expensive.

On the positive side, it must fair to assume that if reintroduced as an 800 passenger luxury market vessel – this would be less than half of the ship’s original capacity – United States would probably be a very high end of the market product.

Although it is 46 years since it last went to sea, its name and history could probably still have a lot of equity in them from a marketing point of view.

Crystal Cruises’ plans call for operating the ship on the North Atlantic, in addition to cruises from US ports. The North Atlantic run, today only served by Queen Mary 2 for a handful of times per year, could probably offer great potential.

Sometimes one cannot but wonder if the modern cruise industry still lives in the memory of the bad years of the 1960s when liner voyages were a certain recipe for financial disaster, or so obsessed by its business model, that it does not really seem to think of the possibility of starting to use passenger ships in passenger transport across the oceans addition to just as platforms for holiday.

Crystal Cruises plans to reintroduce United States to sea

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2016 04 February 2016

Crystal Cruises, the luxury cruise line owned by Genting Hong Kong, may reintroduce the 1952 built United States to the sea, the company said in a statement.

Should the plans be realised, the 60,000 gross ton vessel would be transformed into an 800-guest-capacity vessel, featuring 400 suites measuring about 350 square feet with dining, entertainment, spa and other luxury guest amenities that are true to the ship’s storied history.

“Features of the original SS United States such as the Promenade and Navajo Lounge will be retained, while new engines and sophisticated marine technology will be installed to maintain her title as the fastest cruise vessel in the world,” Crystal Cruises said, adding that the vessel would operate trans-Atlantic voyages from New York and long cruises from other US ports.

However, as Crystal President and CEO Edie Rodriguez said in the statement, it is not sure that the company will proceed with the plans: “We are honoured to work with the SS United States Conservancy and government agencies in exploring the technical feasibility study so we can ultimately embark on the journey of transforming her into a sophisticated luxury cruise liner for the modern era.”

The company also committed to covering all costs associated with preserving the ship while undertaking a technical feasibility study, which is expected to be completed by the end of 2016.

United States was built in 1952 and it was the fastest ever passenger ship to operate on any ocean liner service. However, the introduction of jet airliners soon rendered this merit worthless and due to mounting losses, the ship was laid up in 1969. Several attempts to revitalise it, including one by Norwegian Cruise Line when it was owned by what is Genting Hong Kong now early in the millennium, were introduced, but so far none of them have been resulted in reactivation of the ship.

Cruise shares dive after RCCL unveils disappointing guidance

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 02 February 2016 02 February 2016

Shares in the three largest cruise shipping group in the world fell sharply after Royal CaribbeanCruises, Ltd (RCCL) had unveiled 2016 earnings guidance that was weaker than what analysts had expected.

RCCL said it expected its adjusted earnings per share (EPS) to rise to the bracket of $5.90 to $6.10 in 2016 from $4.83 reported for 2015, but the forecast fell short of the $6.21 average of cruise industry analysts.

Shares in RCCL traded 14.15% down at $72.55 in New York at midday local time, while those in Carnival Corporation, the Panama domiciled but US headquartered holding company in the Carnival group, were 5.80% down at $46.13.

Also in New York, Norwegian Cruise Line Holdings was 8.69% down at $42.97.

In London, Carnival plc, the group’s British holding company, traded 5.4% down from the opening at £33.26.

“Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company currently estimates 2016 Adjusted EPS will be in the range of $5.90 - $6.10 per share,” RCCL said in a statement.