Tuesday, April 9, 2024
Norwegian Cruise Line Holdings Ltd. along with NCL Corporation Ltd., has announced its most expansive new build order to date. This includes eight cutting-edge vessels, adding nearly 25,000 berths across its three renowned brands. Alongside these ships, the Company is constructing a multi-ship pier at Great Stirrup Cay, its private island in the Bahamas and a top Caribbean port of call. This ambitious ten-year plan aims to elevate the guest experience, expand operational capabilities, and solidify the Company’s position as a leader in innovative cruise vacations.
The new vessels are slated for delivery between 2026 and 2036. Norwegian Cruise Line will first receive four Prima-Plus class ships from 2025 to 2028, followed by four approximately 200,000-gross-ton ships with a capacity of nearly 5,000 guests each in 2030, 2032, 2034, and 2036, pending financing. Oceania Cruises will introduce two 86,000-gross-ton ships accommodating 1,450 guests each in 2027 and 2029, building on the success of its Allura Class ships. Similarly, Regent Seven Seas Cruises will unveil two 77,000-gross-ton ships with a capacity of 850 guests each in 2026 and 2029, following the acclaimed Explorer Class ships. More details about the ships’ features, amenities, and sustainability efforts will be revealed in the coming months.
“This strategic new-ship order across all three of our award-winning brands provides for the steady introduction of cutting-edge vessels into our fleet and solidifies our long-term growth. It also allows us to significantly leverage our operating scale, strengthen our commitment to innovation and enhance our ability to offer our guests new products and experiences, all while providing opportunities to enhance the efficiency of our fleet,” said Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “We are likewise excited with the addition of a new pier at Great Stirrup Cay to support our increased capacity in the Caribbean and multiple ships to call on the island, enhancing our guest experience and bringing seamless and reliable access to our private island year-round.”
In collaboration with Fincantieri, the Italian shipbuilder, each brand will craft its own new ship class, prioritizing the creation of the largest, most efficient, and innovative vessels within their fleet. These new ship designs will be in line with the Company’s sustainability initiatives, contributing to the progress towards decarbonization.
“Over the years, our long-standing relationship with Norwegian Cruise Line Holdings has been rooted in a shared vision for the future of maritime travel, consistently setting new standards for innovation, luxury, sustainability, and guest satisfaction in the cruise industry,” said Pierroberto Folgiero, CEO and Managing Director at Fincantieri. “We are thrilled to work on these new build orders and deliver emblematic cruise ships that will embody our shared legacy of excellence for generations to come.”
The company has secured export credit financing under favorable conditions to cover 80% of the contract price for two ships each for Oceania Cruises and Regent Seven Seas Cruises, pending specific conditions. Financing for Norwegian Cruise Line’s ship orders is still in progress and subject to completion.
Mark A. Kempa, chief financial officer of Norwegian Cruise Line Holdings, commented, “we expect that these strategic investments will secure our growth trajectory, significantly boost our earnings profile, and enhance shareholder value well into the future. With a favorable payment structure that includes pre-delivery financing and modest initial installment payments for these ship orders, we still anticipate strong Net Leverage reduction of 1.5 turns by the end of 2024, relative to 2023, and expect the Company to continue reducing Net Leverage each year for the foreseeable future.”
Norwegian Cruise Line Holdings Ltd. is anticipating a new order for four Norwegian Cruise Line (NCL) ships, which will replace a previously effective two-ship order for Oceania Cruises. This initial order for Oceania Cruises was made primarily to secure availability with the shipyard. However, the four-ship order for NCL is still in the finalization stages and is contingent upon securing financing. Although the contractual delivery for the second Oceania Cruises ship is set for the fourth quarter of 2028, there’s a possibility it might be delayed until 2029. These delivery dates are tentative and subject to change.
Great Stirrup Cay New Pier Development
A new pier development is in the works at the Company’s private island, Great Stirrup Cay, located in the Bahamas. The project is scheduled to begin construction in the summer of 2024 and is expected to be completed by late 2025, with an investment totaling around $150 million. This new pier will have the capacity to accommodate two large vessels simultaneously from the Company’s existing and future ship classes. The development aims to enhance the guest experience on Great Stirrup Cay, alongside Harvest Caye, the Company’s private island in Belize, ensuring guests have access to top-notch destinations in the Eastern and Western Caribbean regions.
Conference Call Details
The Company has arranged a conference call on Tuesday, April 9, 2024, at 8:00 a.m. Eastern Time to delve into these updates and announcements further.
Monday, April 29, 2024
Monday, April 29, 2024
Tuesday, April 30, 2024
Tuesday, April 30, 2024
Monday, April 29, 2024
