NCL Corp. Reports $227 Million Loss in 2007

NCL Corp. Ltd. reported a net loss of $227 million for 2007, compared to a net loss of $130.9 million the prior year. Results for the year ended Dec. 31, 2007, include non-cash foreign exchange translation losses of $94.5 million compared to non-cash foreign exchange translation losses of $38.9 million for the year ended Dec. 31, 2006, or an adverse year-over-year impact of $55.6 million.

Also negatively impacting 2007 net results was a $40.9 increase year-over-year in net interest expense due to increased borrowings following deliveries of the company’s new ships, Pride of Hawaii (now Norwegian Jade), Norwegian Pearl, and Norwegian Gem.

The company reported a year-over-year increase in total revenues of 9.9 percent, from $2 billion in 2006 to $2.2 billion in 2007, and a 12.7 percent increase in net revenues, on a 10.3 percent increase in capacity. Operating income for the company increased 29.6 percent from the prior year, from $32.6 million in 2006 to $42.2 million in 2007.

For the fourth quarter of 2007, the company reported a net loss of $133 million on total revenues of $497.5 million, compared to a net loss of $116 million on total revenues of $449.5 million for the same period in 2006.

The increase in revenues was primarily attributable to a 4 percent increase in capacity days and an 11 percent increase in net yields. Driving the increase in net yields was higher ticket pricing, an increase in onboard spend, and increased occupancy levels.

Occupancy for fourth-quarter 2007 was 104 percent compared to 100.2 percent in the same quarter of 2006. Average fuel prices for the fourth quarter increased 46 percent to $491 per metric ton from $336 per metric ton in fourth-quarter 2006. This increase in price contributed to a year-over-year increase in fuel costs of $18.3 million.

The company said the impact of higher interest expenses and the weakening of the U.S. dollar continued to impact the company’s results during the fourth quarter of 2007. Interest expense increased 30 percent or $11.7 million.