NCL Corp. Reports Third Quarter $8.6 Million Loss

NCL Corp. reported an $8.6 million loss for the third quarter of this year, compared to earnings of $49 million in the same period of 2006.

Blaming this year’s profit dive mostly on its Euro-denominated debt, Colin Veitch, president and CEO of NCL Corp, said pricing and demand was on the upswing.

“Pricing in the Caribbean has stabilized and is improving,” Mr. Veitch said in a statement. “We are also encouraged that the measures we have taken with respect to our Hawaii operations seem to be having a positive impact.

“These improvements have contributed to our overall fourth quarter booking levels and ticket prices being up versus levels achieved at the same time last year. As a result, we expect that the change in net yields for the full year 2007 will be positive.”

NCL said a $42.9 million loss related to the exchange rate on its Euro-denominated debt, compared to what was a $2.5 million gain on its Euro debt in the same period of 2006, skewed this year’s earnings compared 2006.

NCL said its interest expense had increased about 25.1 percent to $42.6 million in the third quarter of 2007 from $34.0 million in the third quarter of 2006. Additionally, NCL received $7.3 million during last year’s third quarter in connection with a settlement agreement for NCL’s claims against the builder of its ship, the Pride of America.

The loss came on total revenues of $631.4 million for the third quarter, a 5.7 percent increase over the third quarter of 2006, driven primarily by a 6.3 percent increase in net yields and a 2.8 percent increase in capacity days.