Norwegian Cruise Line forecasts big profit increase in 2014

Norwegian Cruise Line CEO Kevin Sheehan told Wall Street analysts in a conference call he expects earnings in 2014 to be up roughly 60% from this year.

He forecasted profits in the range of $2.20 a share, or about $450 million, compared with an estimate this year of $1.37 a share, or about $280 million.

Norwegian Cruise Line is projecting the large profit increase because of extra capacity and premium rates on two new ships, Norwegian Breakaway and Getaway; fewer drydocks in 2014; a continued reduction in interest expense; and other general cost savings, including lower per-ship fuel consumption.

“We are very early in the budget process,” Sheehan cautioned before going on to say he was comfortable with the forecast.

Sheehan said he expects big dividends from Getaway’s year-round presence in Miami. It will be the first time in 10 years that Norwegian has positioned a ship in South Florida to sail seven-day cruises through the summer.

Sheehan noted the big buildup in capacity industry-wide in the Caribbean, and said Norwegian will have its two newest ships in the fray. Another ship, Norwegian Pearl, is largely chartered already for the first quarter.

In the winter, Norwegian will have about 55% of its capacity in the Caribbean/Bahamas.

Sheehan highlighted the role of travel agents in communicating the unique experience of new ships like Breakaway.

“It is in large part their hard work and dedication that has made Norwegian Breakaway the success that she is and gotten us through much of the challenging environment over the last few years,” he said.

Follow Tom Stieghorst on Twitter @tstravelweekly.