NCL parent reverses net loss with $23.4M profit
Star Cruises Ltd., the parent of Miami-based NCL Corp., posted a profit in the second quarter, reversing consecutive losses, on expanded capacity and increased occupancy.
Asia's biggest cruise operator said net income was $23.4 million in the three months ended June 30, compared with a loss of $33.9 million a year earlier, according to a filing to Hong Kong's stock exchange yesterday. Sales rose to $657 million from $594 million a year ago.
Star Cruises also said it is retreating from unsatisfactory markets. It reiterated its previous announcement that it will withdraw its ship, Pride of Hawaii, from Hawaii in February 2008, with the vessel to be renamed Norwegian Jade and deployed in Europe for the summer of 2008.
Continuous losses prompted Malaysian casino operator Resorts World Bhd. to sell about half of its 34 percent stake in Star Cruises at a discount of 21 percent on July 13 to CMY Capital (L) Ltd., owned by Malaysian businessman Chua Ma Yu, for HK$2.65 billion. Star Cruises has lost $227 million in the previous two quarters.
Star Cruises won't pay an interim dividend, it said yesterday.
The company's shares fell 7 percent to HK$3.45 in Hong Kong before trading was suspended Monday pending a "price-sensitive" statement. They have gained 53 percent this year, compared with the 10 percent advance in the city's benchmark Hang Seng Index.