Wed 30 Oct 2013, 15:34 GMT

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.


Nicolaj Kofoed, Blue Energy Partners. Blue Energy Partners appoints Nicolaj Kofoed as group treasurer  

Bunker firm strengthens treasury function as banking relationships and funding needs grow.

Bunker Partner logo. Bunker Partner seeks trainee lawyer for Athens office  

Role offering the opportunity to a law graduate to gain practical experience in maritime law.

Type approval test (TAT) for H22CDF-GA engine. HD Hyundai gains type approval for low-pressure ammonia dual-fuel engine  

HHI-EMD completes type approval testing for its H22CDF-GA engine, expanding its ammonia engine portfolio to two fuel-supply technologies.

Moataz Abdelrahman, Flex Commodities. Flex Commodities appoints Moataz Abdelrahman as senior marine fuels trader  

Dubai-based trading firm adds senior trader to expand marine fuels and bunker trading activities across the Middle East.

Container vessel manoeuvring in port. Alternative-fuel ship orders outpace port infrastructure, LR report finds  

Lloyd's Register study shows methanol and ammonia bunkering infrastructure lagging behind newbuild orders for alternative-fuel vessels.

UEC60LSJ ammonia-fuelled engine render. J-ENG secures orders for four ammonia-fuelled engines under Japanese PCTC project  

Vessels form part of plan to build four ammonia-fuelled car carriers, a dedicated bunkering vessel and supply chain.

Hanwha Power receives ABS AiP for battery-powered containership design. ABS grants AIP to Hanwha Power for 1,700-TEU battery-powered container ship  

Design uses roughly 151 MWh of swappable battery storage for fully electric propulsion on a container vessel.

Peter Krahenbuhl, WinGD. WinGD signs first licence deal with HD Hyundai Marine Engine to expand Korean production  

Mid-bore engine portfolio gains new production route into Korea's bulk carrier and tanker newbuild markets.

ONE Symphony naming ceremony. Ocean Network Express names ammonia- and methanol-ready newbuild ONE Symphony  

Vessel features conventional diesel main engine, with concept designs approved for possible future conversion to methanol or ammonia.

Sing Fuels logo. Sing Fuels seeks Asia-based supply trader to bolster bunker procurement team  

Singapore bunkering firm is recruiting a supply trader to manage marine fuel purchasing across Asia.