NCL reports a $35.1 million loss

**Ally** · 08-15-2006, 12:47 PM

NCL reports a $35.1 million loss

Miami-based cruise ship operator NCL said a steep increase in fuel costs was largely to blame for a net loss of $35.1 million in the second quarter.

NCL also said it's experiencing the adverse effects of rising interest rates and a weak dollar compared with the euro, and it warned that a slowdown in Caribbean cruise bookings likely will drag down its ticket prices -- and with them, its profits -- for the remainder of the year.

NCL's Norwegian Cruise Line does not operate any ships in the Caribbean currently but will deploy seven ships to the region this winter.

NCL's second-quarter revenues increased to $499.1 million from $373.8 million, primarily because of new fleet additions, which raised its passenger capacity by 19.5 percent. NCL also said its revenues were helped by a 9.2 percent increase in net yields, which measure revenues minus expenses per capacity day and are widely considered a key indicator of a company's pricing performance.

The cruise line attributed the higher net yields to the introduction of a third ship to Hawaii, where it's able to charge a premium for tickets, and growth in onboard spending across its fleet.

**middy** · 08-15-2006, 12:53 PM

Don't think recent developments re flying across the Atlantic will help them in the next quarter either.

**Ally** · 08-15-2006, 01:00 PM

Tbh I think the one area of NCL that has a bearing in the results is the continuing difficulties on NCLA ships. The constant turnover of staff has to be affecting the bank balances, I would have thought. And now NCL, since August 1st, are paying Fred Olsen $30k a day to charter Norwegian Crown will also be putting a hole in the savings too...and will continue to do so until she is handed over on November 1st 2007 to Olsen's.