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Norwegian reports $96.4 million first quarter net loss on financial items

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 06 May 2013 06 May 2013

Norwegian Cruise Line Holdings, the listed parent company of Norwegian Cruise, has reported loss for the first quarter of the year due to financial items.

The company booked $110.4 million in expenses related to debt prepayments funded by the aggregate net proceeds from the IPO and the Notes Offering as well as non-cash compensation and other expenses related to the Company's IPO. On a GAAP basis, net loss and diluted EPS were $96.4 million and $0.49, respectively

Excluding these items, adjusted net income improved to $12.9 million with adjusted EPS of $0.06 from $3.3 million and $0.02 in 2012 respectively. Net yield increased 3.3% on both an as reported and constant currency basis, the company said in a statement.

"We are excited to announce another quarter of strong results, especially in light of this being our first quarter as a publicly traded company," said Kevin Sheehan, Norwegian Cruise Line's President and CEO. "These strong results bring us to nineteen consecutive quarters of year over year Adjusted EBITDA growth."

On January 24, 2013, the Company closed on its successful IPO at a price of $19.00 per share. In addition, on February 6, 2013, the Company issued $300 million of 5.00% senior unsecured notes. The aggregate net proceeds of the IPO and the Notes Offering were used to prepay certain credit facilities, prepay amounts due pursuant to the Norwegian Sky Purchase Agreement, redeem the full amount of the outstanding $450 million 11.75% senior secured notes due 2016, redeem a portion of the outstanding $350 million 9.5% senior unsecured notes due 2018 and for general corporate purposes.

Interest expense, net for the period was $127.7 million and included $90.5 million in charges related to the prepayment of certain credit facilities and the redemption of certain of the Company's senior notes in connection with proceeds from both the Company's IPO and Notes Offering

Carnival sets up Asia unit in Singapore, sees 3.7 million Asians to cruise 2017 - report

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 03 May 2013 03 May 2013

Carnival Corporation & plc, the world’s largest cruise shipping group, has set up regional unit in Singapore and unveiled plans to develop the city state a hub for its Asian operations.

The Anglo-American group is aiming for a 50% share of the Asian cruise market in 2017 and intends to establish South-east Asia as Caribbean of the East, with Singapore as the hub, TTG Asia reports on its website. Carnival has established its regional unit, Carnival Asia, in Singapore and it projects that the Asian cruise market would grow to 3.7 million passengers by 2017, from 1.5 million now.

Pier Luigi Foschi, Carnival Asia chairman and CEO, told TTG Asia e-Daily in an interview this morning: “We would like our share of Asia to be the same as our share of the market worldwide, which is 50%,” the report said

STX to sell French, Finnish yards - report

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 03 May 2013 03 May 2013

STX Business Group, the troubled South Korean conglomerate, plans to sell its controlling stake in STX Shipbuilding & Offshore and sell its shares in the yards in France and Finland, Korea Times reports.

STX chairman Kang Duk-soo has decided to offload all of its overseas assets to address cash flow problems. Also, he decided to hand over his controlling stakes in STX Offshore & Shipbuilding, a key affiliate of the group, the paper reports on its website.

"We will keep our three crucial affiliates ― STX Heavy, STX Engine and STX Offshore. The group plans to sell its shares in its overseas affiliates including our shipyards in France, Finland and Dalian in China,’’ said a spokesman for the group, Tuesday, according to the paper.

The STX group owns 100% of the shares in STX Finland that has a yard in Turku and another one in Rauma, plus 64% of the shares in STX France. It controls these holdings via its Oslo based STX Europe subsidiary. At Christmas, the group sold its remaining shares in a Singapore based holding company of yards that build offshore services vessels. The problems of STX arise from a sharp fall in activity in the shipbuilding industry in the wake of the economic downturn.

All three yards are involved in passenger ship building.

Norwegian Getaway to sail on Southampton-Miami maiden voyage 17 January

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 April 2013 30 April 2013

Norwegian Getaway, second of the two 146,000 gross ton cruise liners Norwegian Cruise Line has ordered from Meyer Werft in Germany, will sail on its maiden voyage from Southampton to Miami on 17 January 2014, said Francis Riley, Vice President International at the Miami based company.

Riley, who was speaking on board the new Norwegian Breakaway in Southampton on Monday, said that the ship will feature Miami theme as opposed to New York on the first vessel of the class. Norwegian Getaway will operate 7-night cruises from Miami year-round.

A third vessel, larger at 163,000 gross tons and with about 4,200 berths opposed to the 4,000 on the two first units, will be introduced in 2015. The yet unnamed vessel will have an additional deck of cabins, which explains its larger tonnage and higher passenger capacity, he said.

Japan brand recovery helps NYK to cut cruise losses

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 April 2013 30 April 2013

Recovery of the business of its Japanese brand Asuka Cruises helped the cruise operations of Nippon Yusen Kaisha (NYK), the Japanese shipping giant, to narrow its loss in the financial year to 31 March, but Crystal Cruises in the US had a more challenging year.

The cruise shipping division of NYK, which employs one ship under the Asuka Cruises brand and two under the Crystal Cruises one, recorded a rise in revenues to JPY35.0 billion from JPY32.4 billion in the previous 12 month period. Operating losses narrowed to JPY3.4 billion from JPY5.6billion, while recurring loss also narrowed, to JPy3.7 billion from JPY5.8 billion, NYK said in a statement.

"In the North American market, Crystal Cruises sales of Mediterranean voyages declined as a result of turmoil in southern Europe stemming from financial instability as well as political tension in the Middle East and North Africa,” NYK stated.

“In the Japanese market, the Asuka Cruises business rebounded strongly from the previous fiscal year, when the Great East Japan Earthquake severely impacted results. Overall, the cruises segment narrowed its loss on higher revenues compared with the previous fiscal year,” it concluded.