News

STX Shipbuilding & Offshore creditors agree debt restructuring

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 02 August 2013 02 August 2013

Creditors of the troubled South Korean shipbuilding giant STX Shipbuilding & Offshore have agreed to restructure the company, media reports say.

“Creditors agreed on a debt restructuring of the (STX) group’s shipbuilding unit on July 31, prompting investors to bet on a turnaround,” the Bloomberg news agency reported.

STX Shipbuilding & Offshore is the parent company of STX Europe, the Oslo based company that controls 64% of the shares in STX France and owns in full STX Finland that has shipyards in Turku and Rauma. Both the French and Finnish units are notable builders of cruise and ferry tonnage.

Employers at the ig Turku yard in Finland were relieved about the news, the Turun Sanomat daily said. “It is not good for business if the owner or parent company hovers on the brink of bankruptcy,” Ari Rajamaki, who is in charge of Health & Safety, was quoted by the paper’s online edition as saying.

Jari Aalto, shop steward at the yard said: “It is obvious that customers look at (the yard) with a magnifying glass and certainly ask questions about the (financial) health of the parent when signing contracts.”

The STX conglomerate, with businesses ranging from shipbuilding to components, has been trying to raise 2.5 trillion won ($2.2 billion) by selling stakes after a slump in charter rates and orders for new vessels prompted flagship Pan Ocean to file for court protection in June, Bloombergs reported.

All Leisure group reports deeper loss on extraordinary charges

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

All Leisure group, the UK based boutique cruise brand operator, has reported a deepening of loss for the first half of its financial year on the same period in 2012 on a number of extraordinary charges. Excluding these, the loss narrowed slightly, the company said in a statement.

Net loss for six months to 30 April deepened to £13.4 million from £11.2 million year on. However, the latest figure includes restructuring costs related to acquisition of Page & Moy, the tour operator, and relocation of group head office to new premises.

“Neither of these costs were included in the loss of £11.2m for the six months ended 30 April 2012. On a like-for-like basis the group result has improved to £9.7m loss, reflecting a year-on-year improvement in the Cruise Division,’ the company said.

“This is further improved by net £1.1m if the group's results are assessed prior to the year on year impact of gains and losses on certain derivative contracts which would result in an £8.6m loss,” All Leisure continued.

The improvement in cruise performance is due in no small part to the success of the strategy to de-risk the business. Highlights of the period under review include:

· Improved year-on-year cruise performance on a like-for-like basis;

· The successful integration of the Tour Operating Division which continues to perform strongly, based on the strength of forward bookings which will convert to revenue and profit in the second half of the year;

· Expensed £1.3m of a planned £1.5m of integration costs with significant synergistic savings being achieved through the reduction of senior management headcount;

· Cruise occupancy levels were 76% (2012: 74%);

· Undertook a substantial, planned dry dock of mv Discovery; and

· The group has hedged over 95% (2012: 95%) of its foreign currency requirements as well as over 30% (2012: 30%) of its projected fuel requirement.

Although the first half of 2013 has proved challenging due to a continued tough trading environment, the successful integration of the Tour Operating Division (previously Page & Moy) and subsequent restructuring program have placed the Group in a stronger position to maximise the benefits of the increase in year-on-year bookings that we are seeing for 2014. We have currently sold 95.6% of forecast escorted tour revenue and 97.8% of forecast cruise revenue for FY13.

Roger Allard, Executive Chairman of All Leisure, said: "It is regrettable that the recent mechanical problems with mv Voyager, tough trading conditions and unfavourable political events in Egypt will impact performance for the second half of 2013. However, despite this, I am extremely pleased to report that we are enjoying the benefits of introducing the Tour Operating Division into the Group, complementing our existing products and creating encouraging cross-selling opportunities.”

“Furthermore, I am excited for the future of the Group following the recent successful integration of Page & Moy and am confident of achieving in the region of £1.5m in full year overhead savings in 2014 following the closure of the Burgess Hill office and rationalisation of senior management within the Group.”

Shares in Norwegian fall sharply after interims

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 July 2013 29 July 2013

Shares in Norwegian Cruise Line Holding, parent company of Norwegian Cruise Line and NCL America, fell sharply on Nasdaq in New York where they are listed after the company had operated net loss on significantly higher financing costs in the second quarter, although operating profit continued to rise.

In early trade, the shares fell 3.23 % to $29.97, which valued the company at $6.11 billion.

Norwegian Cruise Line Holding went public at the end of last year and its shares have traded in the range of $24.16 and $32.93 since the floation.