NCL Revenue...According to.....

[roger001]

Norwegian Cruise Line Holdings
Norwegian Cruise Line Holdings has made waves recently with the introduction of its largest ships, including Norwegian Bliss, Norwegian Joy, and the Norwegian Encore. However, it also operates cruises under the Oceania and Regent brands.

While Norwegian is the smallest of the “big three” cruise companies, it still brings in a healthy amount of money. Last year saw revenue of $6.1 billion, or $16,589,386 each day. As for profits, the company had a bottom line of $954.8 million — or $2,616,008 per day.

 

Norwegian Bliss
Launched in 2018, Norwegian Bliss made headlines not only due to its size (nearly 1,100 feet) but also its features. Notably, the ship offers a go-kart track at sea; one of the most unique features ever seen.

All told, the Norwegian Bliss has room for 4,004 guests, assuming double occupancy. However, like other cruise lines Norwegian sails above 100% capacity. In 2018, the occupancy figure was 107.6%. If Norwegian Bliss sails at this level, it means 4,308 passengers on the ship.

According to financial reports, Norwegian brought in just under $6.1 billion last year with 20.3 million passenger days. Quick division shows that the cruise line earned $299 per person, per day in 2018.

With 4,308 passengers on the Norwegian Bliss bringing in $299 per day, that would mean revenue of $1,288,092 for each day.

 

 

 

[sfaaa]

The world and economic landscape have drastically changed since March 2020. Performance results and historic data in 2018 and 2019 are no longer relevance and unlikely to repeat themselves going forward.

[adam_s_allen]

So if we do a bit of rounding and say about 1/6th of the revenue is profit. That’s about $215,000 a day for the Bliss. At that rate it would take approximately 13 years just to pay off the cost of the ship. These ships will have to be around for a long time.

[Georgia_Peaches]

Honestly, it's mind-boggling to fathom such a debt burden.  I break out in hives when my Amex bill arrives and it's a mere drop of a drop of a drop in the bucket compared to those numbers.

Edited June 2, 2020 by Georgia_Peaches

[dexddd]

So are you saying Bliss brings in nearly half the total revenue?

[hallux]

2 hours ago, dexddd said:

So are you saying Bliss brings in nearly half the total revenue?

No.  Profits are monies left after expenses are paid.  Revenue is total incoming cash flow.  The bliss numbers were reported as revenue while the total number was reported as profit.

Edited June 3, 2020 by hallux

[CruiseMH]

19 hours ago, adam_s_allen said:

At that rate it would take approximately 13 years just to pay off the cost of the ship. These ships will have to be around for a long time.

 

Usually ships are planned to be in operation approx. 25 to 35 years.(at least this is the standard calculation of most cruise lines)

[NutsAboutGolf]

Minus the PoA which has higher fares, it seems to me the most profitable part of a cruise is the casino which have "tighter" slots, often less favorable player rules and less favorable pay tables.

[pmd98052]

14 hours ago, CruiseMH said:

Usually ships are planned to be in operation approx. 25 to 35 years.(at least this is the standard calculation of most cruise lines)

 

Its interesting I don't think I've ever been on a cruise ship that is 25 to 35 years old? NCL Sun is what 18 years now?

[Liljo22]

3 hours ago, pmd98052 said:

 

Its interesting I don't think I've ever been on a cruise ship that is 25 to 35 years old? NCL Sun is what 18 years now?

The Sun is 19 years old.  Spirit is the oldest in the fleet at 22 years.  
 

The Fantasy is the oldest ship of the major cruise lines that I have found.  It is 32 year old.  Royals Empress OTS is 30.

 

 

[Nclcruise1415]

Great information for time passed. Probably not going to be accurate moving forward.

[hloakes]

Don't many of the ships in the top teir lines move or sell their ships to second tier, smaller, or new lines? 

[pmd98052]

6 hours ago, hloakes said:

Don't many of the ships in the top teir lines move or sell their ships to second tier, smaller, or new lines? 

Yes but even with that you struggle to find ships that old I think? Perhaps some of these smaller lines are sailing 35+ year old ships? The debt load is mind boggling. Not fiscally responsible. These companies deserve to go bankrupt.

[hloakes]

RCCL just reduced the price of one of their ships (Rhapsody OTS) from $150,000,000 to $85,000,000. I wonder how much that will be happening in the near future. I don't know how fast they write them down, but I can see a lot of these lines having to reduce their fleets and marking the prices way down. The above reduction of almost 50% shows some need to move them.

[drvmywifecrzy]

I cant wait to see Q2 revenue figures

[chengkp75]

On 6/4/2020 at 4:09 PM, pmd98052 said:

The debt load is mind boggling. Not fiscally responsible. These companies deserve to go bankrupt.

The average corporation has a debt to equity load of about 1.5, meaning they carry 1.5 times as much liability (debt) as their assets are worth (equity).  Carnival Corp has had an average debt to equity ratio of 0.4 over the last 15 years.  So, their debt load is about a quarter of what most corporations carry.  Only fiscally irresponsible if you feel they should be taking advantage of potential increased profits that additional leverage could provide.  NCL has a comparable ratio of 0.52, while Royal Caribbean has a comparatively whopping, yet still within general averages 1.63.

[Crazy planning mom]

On 6/18/2020 at 6:59 AM, chengkp75 said:

The average corporation has a debt to equity load of about 1.5, meaning they carry 1.5 times as much liability (debt) as their assets are worth (equity).  Carnival Corp has had an average debt to equity ratio of 0.4 over the last 15 years.  So, their debt load is about a quarter of what most corporations carry.  Only fiscally irresponsible if you feel they should be taking advantage of potential increased profits that additional leverage could provide.  NCL has a comparable ratio of 0.52, while Royal Caribbean has a comparatively whopping, yet still within general averages 1.63.

If cruising doesn't resume until 2021, will NCL go bankrupt?

[HaveWeMetYet]

Very likely but it will mainly be transparent to cruise passengers unless things are getting very dire. The company will still operate but you will see ships sold, less profitable itineraries removed, and of course, onboard cost cutting. The airlines went thru bankruptcy but frequent flier programs remained intact so I think OBC and FCC will still be there, however, it is not protected like deposits are. FCC has no cash value.

If they miss next summer than liquidation bankruptcy gets to be more of a concern. About 40 percent of profits are in the summer months.

[chengkp75]

1 hour ago, Crazy planning mom said:

If cruising doesn't resume until 2021, will NCL go bankrupt?

It depends on whether you mean "going out of business" bankrupt, or "debt reorganization" bankrupt.  My feel is that the line has capital to last for nearly a year (about Feb/Mar 2021) without operations, and then will need to file for reorganization.

[Crazy planning mom]

Well for me personally if they reorganize, that would be ok for me.  I booked a cruise in October 2022 and would like to go.  However with this pandemic some large companies are liquidating including Hertz.

[AtlantaCruiser72]

1 hour ago, Crazy planning mom said:

Well for me personally if they reorganize, that would be ok for me.  I booked a cruise in October 2022 and would like to go.  However with this pandemic some large companies are liquidating including Hertz.

 

for the record - Hertz are in the early stages of Chapter 11 bankruptcy and are looking to raise additional operational capital as part of their reorganization.  They had attempted, with permission of the bankruptcy court, to issue up to $1Bn USD in new stock.  The SEC had issues with the wording in their filing and the stock issuance was halted.  They will now proceed to secure additional DIP (debtor in possession) financing to keep operating while they go through the chapter 11 process, which can be quite lenghty.  They will continue to operate, although at a reduced capacity (and perhaps close multiple locations) as they go through the process.  They are not yet in Chapter 8 bankruptcy proceedings which would be cessation of all business activity and liquidation at that point.

 

https://www.cnbc.com/2020/06/18/bankrupt-hertz-terminates-controversial-stock-sale.html

Edited June 20, 2020 by AtlantaCruiser72

[PelicanBill]

Chapter 11 Reorganization isn't a picnic either.  The company has to secure a bridge loan to get through the reorganization and hire very expensive consultants who tear apart your company to find remaining value and force you to discharge everything you possibly can. Your suppliers don't get paid and they may or may not be helpful about continuing to do business.  Imagine if the main produce supplier in Port Canaveral said nope, didn't get paid the last month, not delivery any produce to NCL cruises now.  Stock is wiped out. All money owed that isn't secured is now in a pool to be paid back at pennies on the dollar - that includes anyone with a canceled cruise owed a refund.  Future Cruise Credits get evaluated by the court as to whether they may be considered valid or also wiped out - I don't think we've seen a case that is similar to that. They are both liability and asset. Hard to to see how they would figure.

 

The company has to present an operating plan that is viable if debt is discharged and contracts are terminated and restarted.  Usually that means selling assets (closing stores, etc) and probably selling a ship or two to raise some money to seed the plan. And financiers have to step in and say they are willing to finance the new company (at terrible interest rates on new debt, interests in the company, seats on the board, etc.)

 

It's quite a terrible experience.  The company I work for had to sell off a business unit equal to 1/3 of the revenue and get rid of almost all real estate.  We've made it 7 years now but the pandemic is testing us again badly.