Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 04 08T201900Z 1 LYNXNPEK370SK RTROPTP 4 CUBA USA - Business Express

Norwegian Cruise orders eight new ships, biggest order in its history


Norwegian Cruise orders eight new ships, biggest order in its history

By Doyinsola Oladipo

NEW YORK (Reuters) -Norwegian Cruise Line Holdings has placed the largest ship order in its history to meet the growing demand for cruise travel, the cruise operator said on Monday.

The company will order eight new ships across the company’s three brands, scheduled for delivery between 2026 and 2036, executives told Reuters, without giving a price for the ships.

Norwegian Cruise Line made its announcement after stock trading closed. Its shares closed at $19.39, up 2.65%.

The cruise industry represents 1.5% to 2% of the overall vacation market so there is room for growth, Norwegian CEO Harry Sommer told Reuters.

“This is the most comprehensive look to the future that the company has ever done,” Sommer said. “It demonstrates our optimism about the future of this industry.”

Sommer said the new ship orders will not materially increase capital expenditure requirements or the company’s net leverage.

The cruise operator said the new vessels are slightly more expensive than previous ones given inflation. The company took approximately $1.5 billion in euro-denominated term loans to partially finance its purchase of four of the new vessels, according to an SEC filing.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Norwegian said the new ships will enable the company to grow passenger capacity by 6% a year through 2028 and 4% annually through 2036.

“We can grow and deliver these outsized returns on dividend free cash flow while at the same time not impacting at all our leverage for the foreseeable future,” Sommer said.

The company had total net debt of $13.7 billion at the end of 2023.

Italian ship-maker Fincantieri said it will build four of the ships and has signed a letter of intent to build the remaining four.

Norwegian also plans to develop a new pier on its private island in the Bahamas, set to be completed by late 2025, with an investment of $150 million.

The company said the pier will allow it to carry 50% more guests to the region annually.

(Reporting by Doyinsola Oladipo in New York and additional reporting by Granth Vanaik in Bengaluru; Editing by David Gregorio and Deepa Babington)

Recent Post: