Norwegian said it expected full-year EPS to come in about $0.50 down at $5 to $5.10, with some $0.45 owing to the “adverse impact” from the “abrupt” change in federal regulations around Cuba cruises in June.
The line also expects a further $0.07 hit arising from a technical issue suffered by Norwegian Pearl in July when the ship suffered a technical fault during a Mediterranean cruise.
In a trading update issued to the US markets on Thursday (8 August), Norwegian posted second-quarter (Q2) earnings of $240.2 million, up $13.5 million on its performance during the three months to 30 June last year.
Its adjusted net income for Q2, meanwhile, was $282.1 million, up $10.2 million year-on-year.
Norwegian comprises Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
On Cuba and Norwegian Pearl, the company said: “Without these headwinds, the company’s outlook would have exceeded its May guidance primarily as a result of revenue outperformance in the second quarter, coupled with a stronger revenue outlook for the back half of the year.”
Frank Del Rio, Norwegian president and chief executive, said: “The underlying fundamentals of our business remain strong across all core markets, and we continue to expect record financial results in 2019, despite the impact from the change in federal regulations which resulted in the cessation of premium-priced Cuba sailings.”
Looking ahead, Norwegian executive vice-president and chief financial officer, added he expected 2020 to be a “milestone year” for the group on account of “robust demand” for cruise holidays and the launches of Norwegian Encore and Seven Seas Splendor.
