The recent IPO
and the upcoming introduction of the Norwegian
Breakaway will launch Norwegian Cruise Line on a
tremendous growth trajectory, said Kevin
Sheehan, CEO, on today’s earnings call.
Despite 2012 being a challenging year – with the
Concordia incident, European austerity measures
and Hurricane Sandy – Norwegian posted net
income of $168.6 million for the year, up from
$126.9 million last year, and net income of $1.1
million for Q4, up from a loss of $1.9 million
last year.
Norwegian had 46 percent of its capacity in the
Caribbean and 25 percent in Europe in 2012, and
will have 41 percent in the Caribbean and 25
percent in Europe this year – with 18 percent in
the Mediterranean and 7 percent in the Baltic
and Canary Islands.
So far this year, Sheehan said the company is
seeing improved demand and stronger pricing.
Sheehan also expects the new ship to help
leverage further efficiencies across the fleet.
He added that the Breakaway has better advance
bookings than the Epic, which had set the stage
up to that point, and at better pricing.
As for Europe, it is too early to firm up the
outlook, although “we feel pretty decent about
the summer,” Sheehan said.
With the Pride of America going into drydock
this summer, a scrubber will be installed,
allowing the ship to burn the regular bunker
fuel. Sheehan said while the cost was
significant, the payback was quick.
Other ships that sail in ECA waters will also be
equipped with scrubbers.
The earnings guidance for Q1 is from $0.02 to
$0.05 per share and for the full year from $1.20
to $1.40.