Norwegian Cruise Line posts Q2 loss

Norwegian Cruise Line has posted a US$8.9 million (GBP5.8m) loss in its second quarter results ending 30 June compared to a profit in the same three months last year.

The cruise line’s net income had reduced significantly from the US$36m profit posted in Q2 2012 although it carried around 32,000 more passengers to a total of 405, 646.

The company’s adjusted net income increased 67.1% to US$60.2m with its earnings before taxes and other charges (EBITDA) up 12.8% to US$152.3m.

The results incorporated two credit facilities including US$1.3bn for Norwegian Star, Spirit, Sun, Dawn, Pearl and Gem plus another deal for Norwegian Jewel, Jade and Pride of America.

The cruise line also said it is expected to spend US$40.5 million on business enhancements and ship construction up to the end of the full-year numbers. This includes the new Norwegian Getaway which is due to be delivered in January 2014 and will be sister ship to the Norwegian Breakaway which was christened in May. A second Breakaway Plus vessel has also been ordered for delivery in spring 2017, while its Pride of America and Norwegian Pearl ships have both been refurbished in dry-dock periods.

“While the addition of Norwegian Breakaway to our fleet was undoubtedly the highlight of the quarter, our strong results, which include our twentieth consecutive quarter of year-over-year Adjusted EBITDA growth, are equally as notable,” said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line. “Other initiatives in the quarter, from the refinancing of certain credit facilities to further optimise our capital structure, to the enhancements carried out on Pride of America at her recent dry-dock, demonstrate our culture of leaving no stone unturned in order to add incremental value for our shareholders and enhance the cruise experience for our guests.”