Norwegian Cruise line returns to profit in Q2
Norwegian Cruise Line has managed to make a financial turnaround, posting a net profit in its second quarter results for the three months ending June 30.
NCL said its net income increased to $15.4 million compared to a net loss of $27.0 million.
EBITDA also improved by a whopping 87% to $84.2 million compared to $45.1 million in the same period last year.
Revenue declined from $525.0 million to $478.4 million and was due to a 7.7 percent decrease in Net Yield and a 1.8 percent decrease in Capacity Days.
The profit was attributed to lower fuel costs across the fleet, lower crew payroll costs per Capacity Day and other cost reduction measures.
Fuel costs during the quarter dropped 38.2 percent to $356 per metric ton compared to $576 per metric ton last year.
“Despite the weakness in ticket pricing, we are continuing to achieve improvements in our earnings and have begun to demonstrate consistency in our performance” said NCL chief executive Kevin Sheehan.
“Our continuing razor focus on all aspects of our operation, from revenue management to shipboard and shoreside operations, has resulted in record-setting EBITDA for the quarter and an enormous turnaround from our performance just a year ago”
Despite having lower prices than last year, the company said that capacity for the remainder of 2009 was substantially booked, particularly in the third quarter.
Sheehan added that NCL would try to maintain its diligence in controlling costs and carrying out strategic initiatives.
NCL said its net income increased to $15.4 million compared to a net loss of $27.0 million.
EBITDA also improved by a whopping 87% to $84.2 million compared to $45.1 million in the same period last year.
Revenue declined from $525.0 million to $478.4 million and was due to a 7.7 percent decrease in Net Yield and a 1.8 percent decrease in Capacity Days.
The profit was attributed to lower fuel costs across the fleet, lower crew payroll costs per Capacity Day and other cost reduction measures.
Fuel costs during the quarter dropped 38.2 percent to $356 per metric ton compared to $576 per metric ton last year.
“Despite the weakness in ticket pricing, we are continuing to achieve improvements in our earnings and have begun to demonstrate consistency in our performance” said NCL chief executive Kevin Sheehan.
“Our continuing razor focus on all aspects of our operation, from revenue management to shipboard and shoreside operations, has resulted in record-setting EBITDA for the quarter and an enormous turnaround from our performance just a year ago”
Despite having lower prices than last year, the company said that capacity for the remainder of 2009 was substantially booked, particularly in the third quarter.
Sheehan added that NCL would try to maintain its diligence in controlling costs and carrying out strategic initiatives.
