NCL Posts Q3
Norwegian Cruise Line (NCL) has reported net income of $85.6 million on revenues of $550.7 million for the third quarter ended Sept. 30, 2009, compared to net income of $171.2 million on revenues of $639.0 million for the third quarter last year. NCL said the decline in net income reflected foreign currency exchange translation gains in 2008 of $117.6 million. According to NCL, the drop in revenue was primarily due to lower ticket prices, which were partially offset by an increase in onboard and other revenue. The cruise line also had less capacity due to the departure of the Norwegian Dream from its fleet in November of 2008.
Numbers Formula
Three new ships are entering service within a 10-month period, introducing a new class of ship for Carnival Cruise Lines, Norwegian Cruise Line and Royal Caribbean International. CIN takes a look at building costs and revenue potential. The Carnival Dream was built at the lowest estimated cost per passenger (according to the announced building cost), has the least space and the fewest crew per passenger, based on maximum occupancy, and should consequently be the most profitable. However, according to CRUISESONLY, the ticket prices for the Dream start significantly lower than for the Oasis of the Sea and the Norwegian Epic.
Orderbook
The orderbook has no orders past mid-2012, but Carnival Corporation recently told analysts that a new ship order might be placed before the end of the year, according to Tim Conder, senior analyst and managing director at Wells Fargo Securities.
Brazilian Market
The cruise capacity in Brazil may be as high as 858,500 this winter season – up 65 percent, compared to approximately 522,000 last year, according to Ricardo Amaral, managing director of Royal Caribbean Cruzeiros Brazil and president of ABREMAR, the Brazilian association of cruise lines. Eighteen ships will make some 405 cruises from Brazilian ports. In addition are calls by ships sailing from other ports and carrying international passengers.
And there is more: Windstar Cruises has regained its financial footing; the Saint Lawrence Cruise Association has its annual meeting to discuss product improvements; winter cruises in the Mediterranean will be up 27 percent in 2010/2011; Crystal Cruises celebrates its 20th anniversary; Carnival Cruise Lines christens the Dream; and the Oasis of the Seas arrives in Port Everglades.
