Breakaway delivery helps boost Norwegian profits

Breakaway delivery helps boost Norwegian profits

The introduction of Norwegian Breakaway helped push up quarterly net profits for Norwegian Cruise Line by more than 12% to $152.3 million.

Better pricing also helped the line’s figures for the three months to the end of June, a period which saw Breakaway christened in New York following a trade preview in Southampton.

Improvements in both passenger ticket and on-board revenue resulted in a 3.5% increase in net yield.

President and chief executive Kevin Sheehan said: “While the addition of Norwegian Breakaway to our fleet was undoubtedly the highlight of the quarter, our strong results, which include our 20th consecutive quarter of year-over-year adjusted EBITDA growth, are equally as notable.

“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.”

He added: “The delivery of Norwegian Breakaway marks the latest step in a disciplined newbuild programme intended to take the company to the next level.

“Her design and features have received an overwhelmingly positive response from guests and travel partners alike and we look forward to welcoming new and seasoned cruisers to experience all that New York’s ship has to offer.”

Norwegian ordered a second 4,200-passenger Breakaway Plus class vessel earlier in July for delivery in spring 2017.

The first Breakaway Plus class ship is due for delivery in the fourth quarter of 2015.

The combined contract price for the two vessels, which will be constructed in Germany by Meyer Werft, is €1.4 billion.

The company said it has export credit financing in place for 80% of the contract price.

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