Posted on August 11, 2020
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) today reported financial results for the second quarter ended June 30, 2020.
- The company’s second-quarter GAAP net loss was $715.2 million or $2.99 per share compared to net income of $240.2 million or $1.11 per share in the prior year.
- Adjusted net loss was $666.4 million or $2.78 per share in 2020, compared to adjusted net income of $282.1 million or $1.30 per share in the previous year.
- Revenues decreased to $16.9 million compared to $1.7 billion in 2019 due to the complete suspension of voyages in the quarter.
Essentially, the company has much the same tale of woe to tell as the rest of the cruise industry as it restrictions on operations due to COVID-19 continue. However, in a conference call with analysts, President & CEO Frank Del Rio made it clear that the company’s plans for coming through the crisis do not include shedding any ships.
Analyst Steven Wieczynski of Stifel, Nicolaus & Company put this question “ … you obviously have the youngest fleet in the industry. And I think you only have a handful of ships over 20 years old. But you’ve seen some of your competitors start to retire or scrap ships. And do you start thinking about taking similar actions or do you just continue to believe you need more capacity over time and you really remain underrepresented in certain markets?
Frank Del Rio: “Yes, Steve, you answered the question beautifully. We have a young fleet. In fact, the oldest vessel we have, prior to the pandemic, we completed the work in mid-February. We invested $150 million in the Norwegian Spirit so that ship is better than new. We love our capacity. We are the smallest of the big three. So we’re always wanting more, although I think you’ve heard me say that during this pandemic, I’m glad I am the smallest because there’s less mouths to feed, so to speak. But look, we not only have the youngest fleet, but we also have nine incredible vessels on order, which allows us to have the fastest-growing fleet. And so no, we absolutely have no plans to divest of any of our vessels.”
You can read the company’s release on its second quarter results HERE
You can download the earnings presentation slideshow HERE
Source: marinelog
