Wed 30 Oct 2013 15:34

Fuel costs rise for Norwegian Cruise Line


Bunker expenses increase by over 10 percent during the third quarter compared to last year.



Norwegian Cruise Line (NCL) has confirmed that fuel expenses rose from $69,602,000 to $77,035,000 during the third quarter of 2013 compared to the corresponding period in 2012, representing a rise of $7,433,000, or 10.7 percent.

In a comparison of fuel costs during the first nine months of the year, bunker expenses were 225,115,000 in 2013 compared to 206,743,000 in 2012, indicating a year-on-year increase of $18,372,000, or 8.9 percent.

According to NCL, the average fuel price, net of hedges, increased 2.4 percent to $695 per metric tonne during the third quarter of 2013 compared to $679 in 2012. The increase was partially offset by fuel consumption efficiencies particularly from the addition of Norwegian Breakaway to the fleet, NCL said.

Please find below a summary of the company's expectations regarding fuel consumption and pricing, along with accompanying sensitivities, during the fourth quarter and full year 2013.

Description Q4 2013 Full Year 2013
Fuel consumption in metric tonnes 125,000 455,000
Fuel price per metric tonne $655 $680
Effect on Adjusted EPS of a 10% change in fuel prices, net of hedges (in thousands) $0.01 $0.01

Using the above forecast, fuel expenses would be $81,875,000 for the fourth quarter and 309,400,000 for the full year 2013.

As of September 30, 2013, the company said it had hedged approximately 93%, 64%, 51% and 15% of its remaining 2013, 2014, 2015 and 2016 projected fuel purchases, respectively.

Image: Norwegian Star.

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