Norwegian reports improved profits despite 'unexpected challenges'

Norwegian reports improved profits despite 'unexpected challenges'

Norwegian Cruise Line has delivered improved profits for 2012 of $169 million against $127 million the previous year despite the year’s “unexpected challenges”.

The result for a period when the cruise industry had to deal with the impact of the Costa Concordia disaster was announced after the company’s recent move to become a public company.

Full year revenue was up by 2.6% to $2.27 billion with an improvement in yields put down to increased fares and onboard revenue.

Norwegian posted a fourth quarter net profit of $5.6 million against a loss of $1.9 million in the same period in 2011, despite a rise in fuel costs.

Looking forward, the company expects a further improvement in net yields of between 3.5% and 5.5%.

The line takes delivery of Norwegian Breakaway, the first of two new ships, in April, along with a Breakaway Plus vessel due to enter service for in autumn 2015.

President and chief executive Kevin Sheehan said: "While 2012 included some unexpected challenges in the macro environment, our results demonstrate our ability to manage our operations through these external factors and report healthy growth.

"We are very pleased to begin our journey as a public company by posting strong results for 2012.

"In addition, our fourth quarter results marked our 18th consecutive quarter of year-over-year adjusted EBITDA growth.

"2013 marks the beginning of the next chapter of Norwegian's growth story,” he added.

“The delivery of our Breakaway and Breakaway Plus class vessels, designed to improve on the already successful platform of Norwegian Epic, along with our strong product proposition that offers a consistent experience throughout our fleet, has Norwegian well positioned for 2013 and beyond."


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