NCL posts second quarter profit

[mercedes]

Is Norwegian Cruise Line on the upswing? NCL is reporting a second quarter profit of $15.4 million, despite cheaper fares. This compares to a second quarter loss of $27 million last year.

The line says the rise can be attributed to "onboard spending and other revenue" including lower fuel costs.

Occupancy percentages for the second quarter shot up two points to 109.6%. Still, revenues decreased to $478.4 million from $524.9 million a year ago.

NCL CEO Kevin Sheehan said he was pleased with the performance "especially given the current economic climate,” and that NCL has “begun to demonstrate consistency in our performance."

A "razor focus" on all aspects of the operation, including shipboard and shoreside operations, he added, "has resulted in an enormous turnaround of our performance just a year ago."

According to a press release, NCL is "substantially booked" for the remainder of 2009, although at cheaper fares than last year, particularly in the third quarter.

Sheehan said he believes NCL is "moving beyond the low point with regard to ticket pricing," and would continue to work to control costs.

Meanwhile, Star Cruises, co-owner of NCL with Apollo, said it planned to issue $150 million worth of convertible bonds due in 2016, raising cash for repayment of borrowings and general working capital, Reuters is reporting. Shares of Star Cruises have risen 130% so far this year on the Hong Kong stock exchange.

[lindasuelucas]

good for them!!

[hazelson]

I recently watched a ptogram on TV about NCL - the money they make from booze sales is out of this world VBG

[bowlcoach]

Of course NCL made money during the 2nd quarter. Martha & I sailed with them on their South America cruise in April. Look for Celebrity to report record earnings for the last quarter of 2009 after we sail with them next month. Ha!