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Cruising :Norwegian Cruise Line Holdings Reports Second Quarter 2021 Financial Results
Great Cruise Comeback Commenced with Norwegian Jade Cruising in the Greek Isles
Norwegian Encore to Set Sail to Alaska from Seattle as Company’s First Cruise in the United States Since the Global Voyage Suspension in March 2020
MIAMI, : (GLOBE NEWSWIRE) — Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (together with NCL Corporation Ltd., “Norwegian Cruise Line Holdings”, “Norwegian” or the “Company”) today reported financial results for the second quarter ended June 30, 2021, and provided a business update.
“Last week we reached a historic milestone in our Great Cruise Comeback with the successful commencement of our relaunch with the first ship in our fleet,
Norwegian Jade, sailing the Greek Isles. Tomorrow will mark our first cruise in the United States in over 500 days as Norwegian Encore sets sail from Seattle to Alaska,” said Frank Del Rio, president, and chief executive officer of Norwegian Cruise Line Holdings Ltd.
“As we recommence operations, we are putting health and safety at the forefront with our robust, science-backed SailSAFETM health and safety program, including our 100% vaccination policy which applies across all voyages on our three brands. We are ready and eager to welcome guests back on board and continue to see incredible strength in our booking trends for future cruises.
Our team is working tirelessly to execute our plan to return our full fleet to operation by April 2022 to capitalize on this unparalleled pent-up demand.”
Health and Safety
The Company is committed to protecting the health and safety of its guests, crew, and communities visited and has developed SailSAFE, a robust, science-backed health, and safety program that creates multiple layers of protection against COVID-19. The SailSAFE health and safety program is informed by expert guidance from the Healthy Sail Panel and the Company’s SailSAFE Global Health and Wellness Council.
As part of this program, all voyages will operate with fully vaccinated guests and crew in addition to comprehensive SailSAFE protocols, which include universal COVID-19 testing prior to embarkation.
The Company’s 100% vaccination policy applies across all voyages on its three brands as it believes this is the safest way to resume cruising in the current global public health environment. These measures will be continuously evaluated and modified as science and technology evolve.
Resumption of Cruise Operations
The Company has announced its phased relaunch plans for all 28 ships across its three brands which began with Norwegian Jade on July 25, 2021, and continues through April 1, 2022.
The first cruise to commence in the United States is scheduled on August 7, 2021, with Norwegian Encore sailing to Alaska from Seattle.
The Company expects to have approximately 40% of its fleet capacity operating by the end of the third quarter of 2021 and approximately 75% by year-end 2021 with the full fleet expected to be back in operation by April 1, 2022.
The Company’s current plans include a re-start of operations from Florida beginning on August 15, 2021, aboard Norwegian Gem sailing from Miami.
The Company has been unable to reach a mutually agreeable solution with the State of Florida that would allow it to require documentation confirming guests’ vaccination status prior to boarding cruises from Florida.
As such, the Company has asked the U.S. District Court for the Southern District of Florida to invalidate Florida’s prohibition and to grant a preliminary injunction to allow the Company to resume sailing in the safest way possible with stringent health and safety protocols to minimize, to the greatest extent possible, further spread of COVID-19.
A hearing on the motion for preliminary injunction is scheduled for today, August 6, 2021, and the Company hopes to receive additional clarity shortly on its path forward to resume sailing from Florida.
The ruling has no impact on sailings outside of Florida where the Company’s policy of 100% vaccination of guests and crew is in place without issue in every other port it sails from around the world.
Booking Environment and Outlook
Bookings continue to be strong for future periods despite reduced sales and marketing investments and a travel agency industry that has not been at full strength since the start of the pandemic.
2022 booking and pricing trends continue to be very positive driven by strong pent-up demand. The Company is experiencing robust future demand across all brands with the overall cumulative booked position for full-year 2022 meaningfully ahead of 2019’s record levels at higher pricing even when including the dilutive impact of future cruise credits (“FCCs”).
The Company’s advance ticket sales were $1.4 billion, including the long-term portion, which includes approximately $800 million of FCCs as of June 30, 2021.
Liquidity and Financial Action Plan
The Company continues to take decisive measures on its financial action plan to enhance liquidity and control costs in the current environment. As of June 30, 2021, the Company’s total debt position was $12.3 billion and the Company’s cash and cash equivalents were $2.8 billion.
The Company has taken the following additional actions to enhance its liquidity since March 31, 2021:
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In July 2021, the Company amended nine credit facilities for its newbuild agreements and increased the combined commitments under such credit facilities by approximately $770 million to cover owners’ supply and modification costs and financing premium fees.
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Secured a €28.8 million loan facility for newbuild related payments.
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Requested and received approval from its shareholders for an increase of 490 million authorized ordinary shares at the Company’s annual general meeting.