Norwegian Cruise Lines looks for more financing
Norwegian Cruise Line Holdings has reported that it expects a net loss on both a US GAAP and an adjusted basis for the quarter ended 31 March 2020 and the year ending 31 December 2020.
The company also said it had been hindered by its ability to predict cash inflows and future capital needs, and additional capital could be needed to raise.
Norwegian indicated that it had established approximately $515 million in reductions in capital expenditure, comprising approximately $345 million in reduction opportunities from non-newbuild capital expenditure planned for 2020, and is seeking a further reduction of approximately $170 million in capital expenditure on newbuild related payments
"We have also identified various projects and initiatives to reduce our ship operating costs and selling, general and administrative expenses, which we expect will result in reduced cash outflows and cost savings. We are undertaking meaningful reductions in ship operating expense including food, fuel, insurance, port charges and reduced crew manning of vessels during the suspension, resulting in lower crew payroll expense. The majority of the vessels in the company’s fleet are currently transitioning to cold layup, to further reduce operating expenses during the suspension."
Any other measures that have already been adopted include the substantial reduction or deferment of marketing spending in the first half of 2020, the implementation of a company-wide hiring freeze, the introduction of a temporary shortened work week and decreased working hours for shoreside team members with a 20 percent decrease in salaries.
Maritime Business World