STOCKS TELEGRAPH

Tag: NYSE: NCLH

  • Quarterly Results Propel Norwegian Cruise Line (NCLH) Stock To Impressive Gain

    Quarterly Results Propel Norwegian Cruise Line (NCLH) Stock To Impressive Gain

    Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) observed a notable uptrend in its stock performance during the Tuesday session. The trend marked a remarkable 19.84% increase in NCLH stock to conclude trading at $19.09. This notable ascent in Norwegian Cruise Line stock was attributed to the unveiling of its quarterly financial performance.

    Norwegian Cruise Line (NCLH) released its fiscal results for the fourth quarter and the entirety of the year concluding on December 31, 2023, while also offering insights into its projections for the first quarter and full year of 2024. The company generated total revenue amounting to $8.5 billion, indicating a significant 32% escalation compared to the corresponding period in 2019.

    Moreover, it reported GAAP net income of $166.2 million, translating to an EPS of $0.39, thus reinstating full-year profitability for the first time since 2019. This achievement was propelled by the Company’s ongoing margin enhancement initiative, which contributed to the amelioration of operating costs.

    Notably, Gross Cruise Costs per Capacity Day stood at approximately $301 for the year, while Adjusted Net Cruise Costs excluding Fuel per Capacity Day amounted to roughly $154, representing a notable 21% reduction compared to the same period in 2022. This marks a consistent four-quarter progression of year-over-year improvement in this metric.

    NCLH also successfully welcomed the delivery of three ships, namely Oceania Cruises’ Vista, Norwegian’s Viva, and Regent’s Seven Seas Grandeur, marking the highest number of deliveries in a single year in the Company’s history. Furthermore, the company anticipated the refinancing of its $650 million backstop commitment from secured to unsecured status.

    As part of this refinancing, the repayment of its $250 million 9.75% senior secured notes due in 2028, characterized by the highest interest rate debt, was also expected. The Norwegian Cruise Line brand continued to witness remarkable demand, evidenced by bookings and pricing surpassing 2023 levels throughout all four quarters of 2024.

    Similarly, Oceania Cruises and Regent Seven Seas Cruises observed robust demand across all regions, with the exception of redeployed itineraries due to cancellations in the Middle East and Red Sea. The Company’s consumer demand remained healthy, reaching an all-time high in booked positions and pricing, reflecting some of the most successful booking periods in its history, commencing from Black Friday and Cyber Monday.

  • Is Norwegian Cruise Line (NYSE: NCLH) A Good Choice Right Now?

    Is Norwegian Cruise Line (NYSE: NCLH) A Good Choice Right Now?

    Norwegian Cruise Line Holdings Limited (NYSE: NCLH) shares closed green as it has gained +0.64 on Thursday. Norwegian Cruise Line, a world’s biggest cruise line continues raising debt in the following months in order to survive.

    Previously, CDC ordered cruise lines to stop operations in the US until September. Hence, the Norwegian Cruise Line along with other major companies has decided to restart the work in late Autumn. In the meantime, Norwegian Cruise Line and other major companies such as Royal Caribbean (NYSE: RCL) has disclosed its plan that the companies are gearing up for the new Healthy Sail Panel.

    The main purpose of the Panel is to prevent the spread of the virus of cruise ships. The panel consists of top experts in public health, biosecurity, infectious diseases, and hospitality and maritime operations. RCL and NCLH have disclosed that the panel will submit the plans to the CDC. 60% of Norwegian Cruise Line passengers have already demanded a refund for the canceled trip at the start of August. NCLH still has the ability to face these challenges and is not at immediate risk of becoming insolvent.

    Shares of Norwegian Cruise Line Holdings Limited traded up 3.77% as it gained +0.64 on Thursday. In the past 52-weeks of trading, this company’s stock has fluctuated between the low of $7.03 and a high of $59.78. NCLH has moved up 150.78% from its 52-weeks low and moved down -70.51% from its 52-weeks high. If we look at its profitability, it has return on assets, equity, and investment of -12.20%, -37.70%, and 8.90%, respectively. Norwegian Cruise Line market capitalization has remained high, hitting $4.57 billion at the time of writing.

    Norwegian Cruise Line has recently experienced the loss as all of its ships were docked in various ports around the globe. NCLH’s revenue dropped by 99% to $16.93 million in Q2.  Its net loss for the period was $715.2 million. Furthermore, NCLH has reported the adjusted EBITDA of -$393.1 million from April to June. It has a total debt of $10.3 billion at the end of June. Additionally, it has spent $160 million on fleet Maintainance, wages, interest expenses, and taxes.

    If we compare the balance sheet of the Norwegian Cruise line with its competitors Carnival Corporation and Royal Caribbean, it has a worse balance sheet. Royal Caribbean and Carnival Corporation has reported the tangible book value per share of $36.79 and $24.9, respectively. While the NCLH has reported the less tangible equity on its books, and its tangible book value per share is only $15.60.

    It is not wrong to say that the cruise line will continue to burn cash on a daily basis. It is planning to implement a rapid test system on its ship, but it is too early to say that it will continue its operation normally in the coming months. Additionally, another important problem is that the many ports and borders around the world are currently closed to stop the spread of the virus.

    Moreover, it is possible that the no-sail order will be extended because of the current pandemic and upcoming flu season. If one person is infected on the ship the risk of infection spread also increases. If that happens on one of Norwegian Cruise Line ships, it is not wrong to believe that its stock will further plunge like it did earlier this year.