Norwegian Cruise Line Places Largest Order Of 8 New Ships In Historic Move To Meet Growing Demand
Norwegian Cruise Line Holdings has reportedly placed its most significant vessel order in the firm’s history to meet the increasing demand for cruise travel, according to a report by the cruise operator on Monday.
The firm will be ordering eight new vessels across three brands, scheduled for delivery from 2026 to 2036, and executives have notified Reuters without providing a price for the vessels. Norwegian Cruise Line announced the closing of stock trading.
Its shares closed at $19.39, up from 2.65%. Norwegian CEO Harry Sommer informed Reuters that the cruise industry embodies 1.5% to 2% of the all-around vacation market, so there is enough room for growth.
Sommer added that this is the most extensive look at the future that the firm has ever done.
It demonstrates the firm’s optimism regarding the future of the industry. Sommer mentioned that these new ship orders will not increase capital expenditure provisions or the firm’s net leverage.
Due to inflation, the cruise operator declared that the new vessels were relatively more expensive than the previous ones.
According to an SEC filing, the company took about $1.5 billion in euro-denominated term loans to partly finance the purchase of four new vessels.
Norwegian mentioned that the new vessels will enable the firm to grow its passenger capacity by 6% yearly through 2028 and 4% annually through 2036.
Sommer also said the firm could develop and deliver these outsized returns on dividend-free cash flow while not impacting leverage in the near future.
By the end of last year, the company had a total net debt of $13.7 billion. Italian shipmaker Fincantieri said it would build four ships and signed a letter of intent to construct the remaining four.
Furthermore, Norway plans to invest about $150 million in the construction of a pier on a private island in the Bahamas, which is set to be finished by late 2025.
The firm declared that the pier will permit it to carry about 50% more guests to the region yearly.
Reference: Yahoo
Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Disclaimer :
The information contained in this website is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
About Author
Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.
About Author
Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.
Do you have info to share with us ? Suggest a correction
- U.S. Coal Exports Witness Sharp Drop After Francis Scott Key Bridge Collapse In Baltimore
- Ukrainian Forces Strike Russian Naval Missile Carrier In Baltic Sea
- Bangladesh To Rescue 23 Crew Of Hijacked Ship MV Abdullah This Month From Somali Pirates
- Enterprise Products Partners Granted MARAD Port License For Biggest Offshore Oil Export Terminal In U.S.
- U.S. Navy Cruiser Seizes 2370 Kilos Of Cocaine From A Semi-Submersible Boat In The Atlantic
- Titan Clean Fuels & STX Group Conduct Largest Ship-To-Ship Delivery Of LBM To Hapag-Lloyd’s Container Ship
Latest Shipping News Articles You Would Like:
Subscribe To Our Newsletters
By subscribing, you agree to our Privacy Policy and may receive occasional deal communications; you can unsubscribe anytime.
Web Stories
