From the Newsletter 4/16/09
NCL Results ’08
Norwegian Cruise Line (NCL) reported a net loss of $211.8 million on revenues of $2.1 billion for the year ended Dec. 31, 2008, compared to a net loss of $227.0 million on revenues of $2.2 billion for 2007. Excluding one-time charges, including the cancellation of the contract to build a second F3 ship, NCL would have reported a loss of $83 million, compared to a net loss of $224.4 million for the prior year, according to company filings.
NCL also stated that it has been exploring alternatives to optimize its capital structure and in conjunction with an equity investment of $100 million by its shareholders has refinanced approximately $800 million of debt coming due in 2009 and 2010.
“We worked diligently in 2008 to transform the company with the implementation of a variety of measures and initiatives,” said Kevin Sheehan, CEO, in a prepared statement. “The result is a new company, one that is extremely focused on customer service, financial performance and is well poised to come through this difficult period,” he added.
Alaska ’09 – ’10
Alaska may be the hardest hit market this year and, as result, will see an estimated capacity drop of some 90,000 passengers with two fewer ships in 2010 from Royal Caribbean International and Princess Cruises, while Holland America Line will be introducing 14-day cruises.
Numbers
Carnival Corporation recently revised its second-quarter forecast to be in the range of $0.29 to $0.31 and the full year to be in the range of $2.04 to $2.24, down $0.01 and $0.06, respectively, from the previous guidance, due to higher fuel costs and a weaker dollar. For 2008, the reported average ticket revenue per passenger day was $179.93 for Carnival, $171.03 for Royal Caribbean Cruises, and $150.00 for NCL.
Noted
The master of the Explorer is being held accountable for the sinking of the ship off the South Shetland Islands in November 2007, according to a report by the Commissioner of Maritime Affairs for the Republic of Liberia based on an investigation by the Liberian Registery. The investigation concluded that the sinking was due to the master’s decision to enter an ice field. Ambassadors International (Windstar Cruises) is fighting to stay alive. Tim Conder, managing director of equity leisure research at Wachovia Capital Markets outlines the Cuba potential. Thailand, Egypt and Somalia are high risk spots.
And there is more: Celebration Cruises starts service; Travelzoo picks award winners; American Affluence Center reports survey findings; Vision goes under; Hebridean ceases; two million passengers in the UK by 2012;
