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Norwegian quarterly loss down to public listing

One-off expenses arising from the IPO of Norwegian Cruise Line pushed the company into the red in the first quarter of the year.


Without $110 million in costs involved in going public in January, net profit would have come in at $12.9 million against $3.3 million for the same period last year.


The fuel price in the quarter increased 12.5% to $673 per metric ton from $598 in 2012.


However, net yield was up by 3.3% in the three months and net cruise costs excluding fuel fell by 1.5%.


Expected expenditures for ship construction stands at $681.1 million for the remainder of 2013, $755.6 million for 2014 and $788.5 million for 2015.


The company said credit financing is in place of $572.8 million for 2013, $657.1 million for 2014 and $621.1 million for 2015.


President and chief executive Kevin Sheehan, who will oversee the naming of new ship Norwegian Breakaway in New York tomorrow (Wednesday) following last week’s UK trade preview in Southampton, said: “We are excited to announce another quarter of strong results, especially in light of this being our first quarter as a publicly traded company.


“These strong results bring us to 19 consecutive quarters of year over year adjusted EBITDA growth.”


He added: “Our initiatives for driving demand, pricing discipline and continuous improvement resulted in strong earnings and record guest satisfaction scores.


“These efforts contributed to our successful initial public offering and notes offering which further optimised our capital structure, strengthened our balance sheet and positioned Norwegian for future growth.”


Breakaway’s sister ship Norwegian Getaway is currently under construction and is due for delivery in January 2014 to start year round Caribbean cruises from Miami.


The company also plans to add a larger ‘Breakaway Plus’ ship in 2015 and has an option on a second for 2017.

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