Norwegian Cruise Line gains 14.5% more in the first quarter

Looking to 2019, it expects its unit revenue to increase to 4.5%

Norwegian Cruise Line achieved a net profit of more than 118 million dollars (105 million euros) in the first quarter of the year, representing an increase of 14.5% compared to the same period of 2018, reported the shipping company.

From January to March, the business volume of the shipping company amounted to 1,400 million dollars (1,246.3 million euros), with an increase of 8.5%. The volume of business generated on board increased by 6.6% to 430.3 million dollars (383 million euros).

This improvement was mainly due to the incorporation of ‘Norwegian Bliss’ into its fleet, together with an increase in organic prices in the markets in which it operates, with an “important” credit on board. In fact, their unit revenues increased by 2.8%.

The president and CEO of the company, Frank del Rio, has described these results as a record, which together with the increase in reserves with “an intense high season”, has paved the way for a double-digit adjusted increase over the annual outlook previous

“Our modest year-on-year growth capacity of less than 3%, together with the strong continued global demand of our brand portfolio, has allowed us to focus on prices, as evidenced by the record set this first quarter,” he said.

The adjusted gross operating profit (EBITDA) of the cruise company was 10.4% higher, to total 327.6 million dollars (291 million euros), while its operating result decreased by 5.2%, to the 158.2 million dollars (140.8 million euros).

As for registered expenses, they amounted to 826.6 million dollars (736 million euros), 7.6% more than the previous year. The adjusted net cost of the cruise per day of capacity increased by 3.6% without including the price of fuel.

Spending for fuel was 98.3 million dollars (87.5 million euros), 5.2% more. As of March 31, the company had covered approximately 70%, 54% and 36% of the total metric tons of fuel expected for the rest of the year and the years 2020 and 2021, respectively.

FORECASTS

The company expects the solid environment registered in the market to continue throughout 2019 and 2020. Looking ahead to 2019, it expects its unit revenues to increase by 50 points over its previous guidance, from 3.5% to 4.5%.

At the end of the quarter, the expected capital expenditures were 1,400 million dollars (1,246 million euros) for the rest of 2019, 1,200 million dollars (1,068 million) and 700 million dollars (623.2 million euros) for 2020 and 2021, respectively.