|
HONG KONG >> Star Cruises Plc returned to profit in the first quarter, helped by cost cuts and the addition of ships Norwegian Star, based in Hawaii, and Norwegian Sun. Norwegian Star parent
company returns to profit
with new ships and cost cutsStar Cruises says it expects
margins to improve this yearBy Thomas Lau
Bloomberg NewsThe world's fourth-largest cruise line said it expects profit to improve this year as world economies rebound.
The operator of Star Cruises, Norwegian Cruise Line and Orient Lines reported net income of $681,000 for the first quarter, compared with a net loss of $156,000 a year earlier, in a release issued through the Hong Kong Stock Exchange. The numbers are based on Hong Kong accounting standards.
"There will be a sharp turnaround in profit this year because of an improvement in the economy," company Senior Vice President Gerard Lim said at a press meeting in Hong Kong. He didn't give a specific number.
Star Cruises now operates 19 cruise ships and makes port calls to destinations and islands in Hawaii, Asia and the Pacific, North and South America, the Caribbean, Alaska, Europe, the Mediterranean, Bermuda and Antarctica. One ship will be added to the fleet this year and the company has plans to order at least another two vessels.
The plan to order more than two ships comes as a ship that typically costs $400 million might now cost as little as $320 million, Chairman Lim Kok Thay said at the press meeting.
Star Cruises' Hong Kong-traded shares fell as much as 3.7 percent to HK$3.95, after this year gaining 58 percent before today. The Singapore-traded shares rose as much as 3 percent to 51.5 U.S. cents.
The company said it managed to cut costs for operating ships and marketing and selling its services. In addition, the delivery of two new ships last year gave it more capacity without increasing some overhead costs.
"The reduction in the ship operating expenses was achieved through cost control initiatives implemented in 2001, and the rationalization of its cruise operations in North Asia in November 2001 following the Sept. 11 events," the company said in a statement published on its Web site.
Sales rose 9.7 percent to $368 million from $335.4 million.
"The group also benefited from the economies of scales as a result of increased capacity with the introduction of Norwegian Sun and Norwegian Star in the second half of 2001," it said.
The occupancy rate, which stood at 94 percent in the seasonally weak first quarter, will be higher in the second and third quarters, Chairman Lim said. The company's strongest markets are now Hong Kong, Singapore and Thailand, he said.
The Norwegian Star, operated through the Norwegian Cruise Lines brand, began interisland cruises in Hawaii in December.