Norwegian Cruise Line boss nets $1.3m in the share sale

Image result for andy stewart nCL

Norwegian Cruise Line boss Andy Stuart netted $1.3 million from the sale of shares.

He sold 25,000 shares in parent company Norwegian Cruise Line Holdings in two tranches last week, according to a filing with the US Securities and Exchange Commission.

The sale at $50 per share came after the company reported record second-quarter financial results with earnings of $240.2 million for the three months to June 30.

The lift in profits came despite the impact of the abrupt US government ban on cruise ships calling into Cuba and a technical problem with the ship Norwegian Pearl which forced one cruise to be amended and another to be canceled.

Company president and CEO Frank Del Rio said at the time: “The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings.”

NCLH has a market capitalization of $10.88 billion and controls NCL alongside Oceania and Regent Seven Seas Cruises.

RCCL aims to double earnings per share over next three years

By Tom Stieghorst
Royal Caribbean Cruises Ltd. (RCCL) set a dual goal of boosting its return on invested capital to double digits and doubling its 2014 earnings per share over the next three years.

The “Double-Double” program was announced in its second-quarter earnings report, which showed net profit soared to $137.7 million, up from $24.7 million a year earlier.

In publicly announcing its financial targets, RCCL said “articulating clear and specific goals helps guide internal decision-making as well as better informing investors of the path of the business.”

Net yields for the quarter were up 2.6%, at the top of RCCL’s guidance, driven by strong booking trends for Europe and China sailings. There was continued softness in the Caribbean.

RCCL said that because of the strong quarter, it was boosting 2014 projected profit by $22 million to a range of $755 million to $777 million.

Second-quarter revenue rose to $1.98 billion from $1.88 billion a year earlier.

Cruise must provide shareholder value to invest and grow

Cruise must provide shareholder value to invest and grow

By Lee Hayhurst

Shareholder return is a vitally important part of the cruise industry if it is to attract more investment to allow it to grow, says Celebrity Cruises chief executive Michael Bayley.

Bayley told the Clia Columbus Day in Liverpool that profitability was a core component for cruise operators that need to invest billions of dollars to build new vessels.

“It’s incredibly important that we are providing an adequate return to shareholders and investors who put literally billions of dollars into the product. The marketplace for capital is very competitive. It’s not just available anywhere, people want to know that when they invest in whatever sector that they can get the return associated with any risk.

“We need to be able to encourage more investment. We need to introduce new brands and products and certainly need to introduce new ships. To achieve that we must achieve more revenue and reduce costs.”

Bayley, for instance, called for a more collaborative approach to port development in emerging cruise markets, the costs of which are currently passed on to the cruise lines which in turn pass them on to customers. “That’s really something that needs to be worked on,” he said.

Bayley added that the cruise industry must look to develop new sources of passengers like in the fast-growing markets of South East Asia, China and South America.