Norwegian Cruise Line Holdings Predicts Record 2023

Norwegian Cruise Line Holdings Predicts Record 2023

Strong pricing and a strong product, plus capacity growth, will lead to a record 2023 financial performance from Norwegian Cruise Line Holdings, predicted Frank Del Rio, president and CEO.

"Where we sit today, and without another Black Swan event derailing our plans there is a reasonable and clear path to reach record net yields and record adjusted EBITDA levels in 2023," he said, speaking on the company's first-quarter earnings call.

"Boosted by the introduction of four new ships across our three brands over the next 18 months, our goal, our entire team is focused on achieving. As just mentioned, the key components of the future success will be our industry-leading growth profile with nine new ships coming online across our three brands through 2027."

Those new ships joining over 2022 and 2023 include the Norwegian Prima and Viva, the Regent Seven Seas Grandeur and Oceania Vista.

CFO Mark Kempa said that building occupancy rates would continue along with high ticket pricing.

"Looking ahead, load factors are also improving sequentially each month and we expect second-quarter load factors to come in at approximately 65 per cent," he said.

"This will continue to build throughout the year and we expect to reach historical load factor levels in the first half of 2023, and at record pricing, staying consistent with our go-to-market strategy and protecting the long-term pricing strength of our brands."

With a booked position ahead of 2021, Del Rio said that the new tonnage should continue to drive the business.

"We were in a way lucky that we didn't take delivery of any new ships during the pandemic, but over the next 18 months, we take delivery of four. And so we think like we've seen historically, new ship introductions are real tailwind to net yield growth to profitability, the topline revenue," he said.

"Inflation is an ugly word, but there is a pretty side, which is pricing power ... So we think that in the absence of more Black Swan events, and we've had more Black Swan events in the last two years than I think we've had in the prior 20. 2023, indeed, it could be the record year that we're seeing unfolding before us."

Carnival Corp cuts profit forecast

By Phil Davies 

The world’s largest cruise conglomerate Carnival Corporation last night cut its profit forecast for the second half of the year.

The US-based cruise giant blamed lower net yields and the cancellation of cruises by its main Carnival Cruise Lines brand, which has suffered from a series of problems with its ships.

The line slashed prices in the UK by up to 40% last month following the announcement of a £500 million fleet-wide operational review in the wake of an engine fire which left Carnival Triumph (pictured) stranded in the Gulf of Mexico in February and technical faults on some of its other ships.

Carnival Cruise Lines then announced the withdrawal of its two ships from Europe in 2014, although denied this was due to the recent incidents.

Miami-based parent company Carnival Corporation said last night: “Current cruise ticket pricing for the company has driven higher booking volumes; however, at the same time, it has led to lower-than-anticipated net revenue yields which has resulted in reduced earnings guidance.”

It cut its full year earnings per share expectation to a range of $1.45 to $1.65 compared with previous guidance of $1.80 to $2.10.

The group said: “The company now expects full year 2013 net revenue yields to be down 2% to 3% compared to the previous flat yield guidance for the year.

“In addition, voyage cancellations beyond those incorporated in the company’s previous earnings guidance, as well as increased selling and administrative costs, are expected to reduce earnings by approximately $0.10 per share.”

These factors, as well as current fuel prices of $674 per metric ton and currency exchange rates of $1.30 to the euro and $1.53 to the pound, prompted the new earnings outlook.

The company, which has UK brands P&O Cruises and Cunard Line, is to announce second quarter results and more details of its 2013 full year guidance in late June.