World News
Cruise Line Reports Rising Bunker Costs
Fuel expenses for Norwegian Cruise Line [NASDAQ:NCLH] (Norwegian) rose 11 percent to $77.0 million in the third quarter of 2013, while its revenues and profits also rose, the company reported.
Fuel prices net of hedging rose 2.4 percent to $695 per metric tonne, but the higher price was partly offset by increased fuel efficiency, particularly through the addition of the more fuel-efficient Norwegian Breakaway.
The company's revenue was up 19 percent year-over-year to $583.9 million, while profits rose 35 percent to $170.9 million.
"While the environment this year has become more challenging than anticipated, we demonstrated once again our ability to execute and post solid earnings," said Kevin Sheehan, president and CEO.
"Our results for the quarter are the product of a summer season which was bolstered by the premium pricing from Norwegian Breakaway in her first full quarter of operation."
The company is in the process of installing its first fuel scrubbers on the Hawaii-based ship Pride of America, and it also plans to include fuel scrubbers on two new vessels that it will introduce in 2015 and 2017.
Green Tech Marine, which is supplying the scrubbers for the Pride of America, said early this year that it would be the largest marine scrubber installation in the world.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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