NCLH says 2020 demand, occupancy and pricing outpace present year
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 November 2019 08 November 2019
The outlook for 2020 is strong for Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group as demand, occupancy and pricing outpace present year, its top officer said.
“We are on track to deliver yet another record-breaking year in 2019, and the positive momentum for our global brands is carrying over into 2020, as demand, occupancy and pricing continue to outpace 2019 record levels, buoyed by the addition of Norwegian Encore and Seven Seas Splendor,” said Frank Del Rio, president and chief executive officer of NCLH, in a statement.
“The underlying fundamentals of our business remain as strong as ever, allowing us to post another solid quarter of financial results despite the impacts from Hurricane Dorian. The top line exceeded expectations and we recorded the highest quarterly revenue in our history
“We accelerated returns to shareholders to take advantage of current valuations and executed $150 million in share repurchases in the quarter, bringing our total capital returns since January 2018 to $1 billion,” said Mark A. Kempa, executive vice president and chief financial officer.
NCLH third quarter net income slips to $450.6 million as operating expenses rise
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 November 2019 08 November 2019
Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported a slight fall in third quarter net and operating income despite an increase in revenues as operating expenses increased.
In the third quarter, net income fell to $450.6 million from $470.4 million year on, while operating income also fell, to $511.7 million from $550.3 million. Revenues increased to $1.91 billion from $1.86 billion.
Cruise operating expenses increased to $990.7 million from $928.9 million and other operating expenses to $411.4 million from $379.1 million, year on.
For the first nine months of the year, NCLH reported a rise in net income to $808.9 million from $800.2 million but operating income fell to $978.1 million from $1.00 billion. Revenues rose to $4.91 billion from $4.67 billion.
GAAP equaled earnings per share (EPS) of $2.09 in the third quarter compared to $2.11 in the prior year. “The Company generated Adjusted Net Income of $481.5 million or Adjusted EPS of $2.23 compared to $506.4 million or $2.27 in the prior year. These results include a $0.06 per share adverse impact from voyage cancellations, itinerary modifications and relief efforts related to Hurricane Dorian,” NCLH said in a statement.
“Revenue increased 3.0% to $1.9 billion on a decrease in Capacity Days of 1.8% compared to slightly less than $1.9 billion in 2018. This increase was primarily due to an increase in Net Yield driven by the repositioning of Norwegian Joy to North America, robust onboard spending along with strong growth in organic pricing across all core markets. Gross Yield increased 4.8%. Net Yield increased 3.9% on a Constant Currency basis and 3.3% on an as reported basis,” NCLH said.
Total cruise operating expense increased 6.7% in the third quarter of 2019 compared to 2018, primarily due to continuing effects from the redeployment of Norwegian Joy during the second quarter of 2019 and incremental direct costs related to air promotions. Gross Cruise Costs per Capacity Day increased 8.9%. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day increased 11.0% on a Constant Currency basis and 10.2% on an as reported basis, the company stated.
Half a million gross tons of newbuildings enter service three days
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 31 October 2019 31 October 2019
The cruise industry has experienced a record week of deliveries of newbuildings as three large ships added almost half a million gross tons to the global cruise ship fleet.
MSC Cruises took delivery of the 181,541 gross ton MSC Grandiosa from Chantiers de l’Atlantique shipyard in France today.
Yesterday, Meyer Werft in Germany delivered the 169,245 gross ton Norwegian Encore to Norwegian Cruise Line. It is the third and final Brreakaway Plus class vessel of the operator.
On Tuesday, Carnival Cruise Line received the 133,868 gross ton Carnival Panorama from Fincantieri. The ship was ordered in 2015 for P&O Cruises Australia as their first new building, but was later transferred to Carnival Cruise Line within the carnival corporation & plc group.
The combined gross tonnage of the three ships amounts to 484,654.
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