NCLH reports rise in second quarter and first half earnings on strong demand
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 08 August 2019 08 August 2019
Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, has reported an increase in both second quarter and first half net income p[lus operating income on strong demand.
Net income in the second quarter rose to $240.2 million from $226.7 million in the same period last year, while operating income rose to $308.9 million from $292.1 million, Revenues reached $1.65 billion, an increase from $1.52 billion year on.
In the first six months of the year, NCLH’s net income rose to $358.3 million from $329.8 million and operating income rose to $466.9 million from $459.2 million. Revenues increased to $3.07 billion from $2.82 billion.
“The Company generated Adjusted Net Income of $282.1 million or Adjusted EPS of $1.30 compared to $271.9 million or $1.21 in the prior year,” NCLH said in a statement.
“Continued robust demand for our global brands along with our strong consumer focused value proposition, honed revenue management practices and best guest marketing strategy, enabled us to continue to drive ticket pricing higher which, when coupled with strong onboard revenue performance, resulted in record second quarter results,” said Frank Del Rio, president and chief executive officer of NCLH.
“The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings, ” he added.
Increase in revenues in the second quarter was primarily attributed to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 along with 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 7.5%. Net yield increased 5.8% on a constant currency basis and 5.0% on an as reported basis.
Total cruise operating expense increased 11.1% in 2019 compared to 2018, primarily due to an increase in capacity days as a result of the addition of Norwegian Bliss to the fleet in 2018 and the redeployment of Norwegian Joy to North America.
Gross cruise costs per capacity day increased 8.3%. Adjusted net cruise cost excluding fuel per capacity day increased 6.1% on a constant currency basis and 5.1% on an as reported basis. Fuel price per metric ton, net of hedges increased to $493 from $481 in 2018. The company reported fuel expense of $100.5 million in the period, NCLH said.
Genting Hong Kong to sell 35% stake in Dream Cruise to North American investors
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 07 August 2019 07 August 2019
Genting Hong Kong, the largest cruise shipping group headquartered in Asia, said it would sell 35% of its Dream Cruises premium market unit to TPG Capital Asia, TPG Growth and Ontario Teachers’ Pension Plan.
“The consideration for the 35% equity interest is US$489 million, valuing Dream Cruises total equity at US$1,397 million. With assumption of net debt of US$1,871 million, the enterprise value of the transaction is US$3,268 million. The transaction will result in a gain of approximately US$470 million, which will increase the net asset value of each GHK shares by US 5.5 cents or HK 43 cents,” Genting Hong Kong said in a statement
The purchase will be made in two tranches, with the first guaranteed tranche of at least 24.5% for US$342 million expected in September, and a second tranche of up to 35% in total expected by December of 2019. Additional incentive payments will be paid on achievement of certain profitability level of Dream Cruises and delivery of each of the Global Class ships.
"Dream Cruises is the premium brand for the fast growing Asian-sourced cruise passenger, with the vision that they will be able to cruise globally in all regions of the world with Dream Cruises,” said Tan Sri KT Lim, Chairman and CEO of GHK.
“The investment by TPG and Ontario Teachers’ will help Dream Cruises to have the youngest and technologically most advanced fleet of quality German built cruise ships with legendary Asian service. And we are delighted to partner again with TPG as we did on Norwegian Cruise Line Holdings Ltd. in 2008,” he added.
The two Global class ships will be of 204,000 gross tons and they are on order at MV Werften, which is also owned by Genting Hong Kong.
Color Line takes delivery plug-in hybrid ferry from Ulstein Werft
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- Written by Teijo Niemelä Teijo Niemelä
- Category: Top Headlines Top Headlines
- Published: 02 August 2019 02 August 2019
Color Line has taken delivery of the world’s largest plug-in hybrid ship Color Hybrid. The ship sets a global standard for environmentally friendly ships, and represents a significant upgrade of the shopping and adventure offerings for travellers between Norway and Sweden. The maiden voyage goes from Sandefjord to Strømstad on August 9.
Color Hybrid employs new solutions to reduce noise and emissions. The ship is a plug-in hybrid, and its five-megawatt hour batteries are charged via a power cable with environmentally friendly power from shore power plants on the quay in Sandefjord. The ship will sail in and out of the Sandefjord fjord virtually silently and without emissions of harmful environmental gases, or nitrogen and sulfur compounds to the air in the area.
The battery pack weighs 65 tons and can be charged in one hour. In addition, the ship has a large heating reservoir of 5 megawatt-hour capacity that utilizes waste heat from both the engine cooling water cycle and exhaust gases for heating purposes onboard. This, together with an optimal hull construction, helps to make the ship energy efficient and environmentally friendly.
Color Line bases its investments on the efforts of the authorities and the international community to reduce greenhouse gas emissions. "Construction of the world's largest plug-in hybrid ship is in line with the company's ambitions for further development of sustainable and environmentally friendly solutions for Norwegian shipping," says Trond Kleivdal, CEO of Color Line. Over 70% of the suppliers are from the maritime cluster in Norway, representing the very best of the Norwegian maritime industry.
With its innovative and environmentally friendly solutions, the ship is an important project for Ulstein Verft and the maritime cluster. "We would like to thank Color Line for a very good and constructive collaboration throughout the construction period," says Gunvor Ulstein, CEO of Ulstein Group.
The new ship will provide an improved travel experience and set a new standard for comfort. Shopping and service offerings onboard will be expanded and improved, with large stores and three great eateries with a rich variety of food and drink. On deck there will be a greenhouse powered by residual heat where herbs and vegetables, among other things, will be grown and served on board. Guests with a love of the sea will surely seek out the additional ”bridge” wing at the stern, built for passengers. A glass floor will allow guests to follow the waves and the ship's rhythm with a direct view to the open sea.
The world's largest plug-in hybrid ship is 160 meters long, with a capacity of 2,000 passengers and around 500 cars. The ship will provide significantly increased capacity on the route between Norway and Sweden.
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