CRUISE INDUSTRY

Profits up for Norwegian Cruise Line

 

Miami-based Norwegian Cruise Line, which has added two ships in the last year, reported increased revenues and profits for the first quarter.

hsampson@MiamiHerald.com

Despite a competitive Caribbean, Norwegian Cruise Line Holdings reported improved revenues and profits for the first quarter of the year.

Miami-based Norwegian said revenue increased by 26 percent year-over-year for the three-month period that ended March 31. Profits were up to nearly $52 million, compared to a loss of more than $97 million in the beginning of 2013.

Adjusted net income, which excluded a onetime income tax benefit, was $49.6 million, compared to $12.9 million for the first quarter of last year. Adjusted earnings per share of 23 cents beat analyst expectations and came in at the high end of Norwegian’s forecast.

Adjusted net cruise costs excluding fuel were up 3.7 percent, mostly because of costs related to the debut of the Norwegian Getaway earlier this year and drydock maintenance expenses for the Norwegian Spirit.

Net yields, or net revenue per capacity day, increased 3.8 percent. But Norwegian lowered its expectations for full-year yields; instead of increasing about 4 percent, the company expects an increase of 3 to 3.5 percent. That change was due in large part to discounting in the Caribbean, where Norwegian and competitors have struggled to raise prices.

Kevin Sheehan, president and CEO of Norwegian, said the company is “cautiously optimistic” that the Caribbean will show improvement moving forward. He pointed out the recent news that MSC Cruises, which introduced the 3,502-passenger MSC Divina for year-round cruising from Miami last fall, will reposition the ship to Europe in the summer of 2015.

“That was a big part of the situation that happened this year,” he said. “I’m feeling that the market size in the Caribbean is getting back to where it needs to be for 2015.”

Norwegian launched the Getaway, with capacity for almost 4,000 passengers, during the first quarter of this year in Miami. That followed sister ship Norwegian Breakaway, which made its debut last spring in New York. Combined, the two vessels represented a 23 percent increase in capacity.

“It’s quite a task to absorb a 23% capacity increase in a single quarter, but our results show that this mission was successfully accomplished,” Sheehan said.

Norwegian also announced that the company’s board of directors had authorized a three-year, $500 million stock buyback program.

By late Tuesday afternoon, the company’s stock was up nearly 6 percent to $33.54.

Read more Business stories from the Miami Herald

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Marketplace

Today's Circulars

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category