NCL Reports Better Results for Q4, Full Year despite Recession
Norwegian Cruise Line (NCL) reported results for the fourth quarter and full year ended Dec. 31, 2009. EBITDA in the fourth quarter improved to $37.4 million from $6.6 million and to $324.1 million from $228.1 million for the year.
Net cruise cost per capacity day decreased 14.3 percent in the fourth quarter and 17.4 percent for the year. But net yield for the quarter and full year decreased 4.2 percent and 7.7 percent, respectively.
EBITDA for the fourth quarter of 2009 improved to $37.4 million versus $6.6 million for the same period of 2008, a 24 percent increase on an adjusted basis, to $41.6 million from $33.7 million. The significant improvement in EBITDA was achieved despite an 8.3 percent decline in net revenue in the quarter to $303.5 million in 2009 from $330.9 million in 2008. This decline resulted from a 4.2 percent decrease in net yield and a 4.2 percent decrease in capacity days.
NCL said the decrease in net yield was primarily due to weakness experienced in passenger ticket pricing versus 2008 and was partially offset by an increase in net yield from onboard and other revenue.
The decrease in capacity days resulted from the departures of Norwegian Dream and Norwegian Majesty from the company’s fleet in November 2008 and October 2009, respectively. Occupancy percentage for the quarter increased to 106 percent compared to 101.2 percent in the prior year. Net loss for the quarter narrowed to $39 million on revenue of $401.7 million from a net loss of $211 million on revenue of $430.9 million in 2008.
Net cruise cost per capacity day decreased 14.3 percent in the fourth quarter of 2009 compared to the same period of 2008. The decrease was primarily attributable to an overall reduction in cruise operating expenses as well as lower general and administrative expense. These reductions were partially offset by higher fuel expense with fuel cost per metric ton of $476 in 2009 up from $435 in 2008.
EBITDA for the full year of 2009 increased 42 percent to $324.1 million from $228.1 million in 2008 (a 16 percent improvement on an adjusted basis to $332.5 million from $286.0 million). The improvement was achieved despite a decline in net revenue of 12.4 percent resulting from a 7.7 percent decrease in net yield and a 5.1 percent decrease in capacity days. The decrease in net yield was primarily due to weakness in passenger ticket pricing versus 2008 and was partially offset by an increase in net yield from onboard and other revenue.
The decrease in capacity days resulted from the departures of the Marco Polo, Norwegian Dream and Norwegian Majesty from the company’s fleet in March 2008, November 2008 and October 2009, respectively. Occupancy percentage for 2009 increased to 109.4 percent compared to 106.8 percent in the prior year. Net income in 2009 was $67.2 million on revenue of $1.9 billion compared to a net loss of $211.8 million on revenue of $2.1 billion in 2008.
NCL said year-over-year booking volume continues to be positive and occupancy levels for 2010 are tracking comparable to 2009’s record levels. On a cumulative basis, 2010 pricing on the books is ahead of 2009 and net per diems for passenger ticket revenue on recent booking activity is above prior year levels in all quarters.
