Norwegian Cruise Line today announced its quarterly and annual results for the fourth quarter of 2020 and the full fiscal year 2020. In addition, the Company provided an update on its operations and explained how it manages the current suspension situation, including the $1 million loss due to the CDC Conditional Sailing Order.
Not only has the implementation of the conditional regulation taken much longer than expected, but there are also still considerable uncertainties about the specific requirements of the conditional regulation. It also contains technical instructions that have not yet been received by all cruise lines.
The fact that Norwegian Cruise Line had to re-equip its ships and repatriate much of its crew after the encouraging news in November cost the company dearly.
Norwegian Cruise Line Holdings chairman and Seo Frank Del Rio believes the introduction of vaccines and progress on herd immunity is encouraging for the future of the cruise industry after a very difficult year in 2020:
2020 was undoubtedly the most difficult year in the company’s 50-year history, but our team responded to this unprecedented situation with swift and decisive action. Our company has once again demonstrated its adaptability and resilience, highlighted by the unwavering commitment and dedication of our team members around the world. As for the future, we are encouraged by the accelerated introduction of vaccines, advances in herd immunity and strong demand for future cruises.
photo credit: ackats / Shutterstock.com
Also read : The Norwegian Cruise Line is canceling all of its summer sailings.
As for vaccinations, many cruise lines wonder if cruise ships require vaccinations before guests can board. Although the statement sent by the company is rather vague, it seems that NCL is certainly considering immunization as at least part of its overall plan for VIDOC19 :
The Company continually evaluates and identifies opportunities to improve these standards as science, technology and knowledge of SARS-CoV-2 advances, including by incorporating the latest vaccine developments into the overall strategy for eventual resumption of service.
It remains to be seen whether this means that the company is currently mandating vaccinations.
The most surprising factor in the figures disclosed by Norwegian Cruise Line is the amount of money lost due to the long delays in updating the CDC’s technical specifications. Last November, the NCL began sending crew members to its ships. The company plans to go into business in early 2021.
As Norwegian Cruise Line tried to prepare its ships for a possible return to service in early 2021, it spent an additional $15 million a month on transshipment fees.
It’s worth reading: 10 benefits and tips about Norwegian Cruise Line’s share price
These actions were taken pursuant to a conditional CDC order that did not take effect. The incentive costs were mainly related to crew renewal, vessel relocation and provisioning, introduction of new health and safety protocols and investment in marketing.
In addition, at December 31, 2014, the Company had total debt of $11.8 billion and cash and cash equivalents of $3.3 billion. The company reported an adjusted net loss of $2.2 billion for 2020. Last quarter, cash consumption was high at $190 million per month and NCLH expects this to continue into the first quarter of 2021.
The outlook for 2021 is uncertain for everyone, including Norwegian Cruise Line. The Company expects to report a loss for the first quarter of 2021, which is not surprising given that the Company will not have any vessels operating in the first quarter.
What happens next depends entirely on the progress of global immunization, the resumption of international travel, and the issuance of CDC regulations and subsequent swimming permits.
It doesn’t seem clear that Norwegian Cruise Line is suffering major losses.
frequently asked questions
Will the Norwegian Cruise Line recover?
Today, investors are not taking into account all the negative effects of printing new shares and taking on additional debt over the past nine months. The cruise industry will recover, but it will be a gradual process at the top and a much longer road back to the bottom.
Are Norwegian cruise lines in trouble?
The Norwegian shipping company, which is the third largest in the world after Carnival Corporation and Royal Caribbean, has struggled to keep its head above water since the early days of the pandemic, with its shares plummeting in the first few months of the year due to rising costs.
Repin? Cruise Lines
Scheduled dates for cruise line relaunch : AmaWaterways – 6. April 2021. Steamer American Queen – 14. March 2021. … Disney Cruise Line – June 2021.
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