Page 31: of Maritime Reporter Magazine (February 2025)

ON THE REBOUND ic-induced drought of new orders. These (which has costs) is critical. Financial with DISNEY DESTINY, a sistership to vessels will also be LNG powered. reporting from NCLH (the smallest of follow later in 2025. Powered by MAN

At Norwegian Cruise Line Holdings the “Big Three”) provides an insight 2V 51/60DF engines, Meyer Werft Pa- (NYSE: NCLH), with its eponymous into the importance of debt in cruise penburg is the builder of both vessels.

Norwegian International, Oceania, Sev- ship ? nance generally. Its end Septem- In Summer, 2024, Disney announced en Seas and Regent brands, NORWE- ber, 2024 balance sheet showed over- a multi-ship order from the same Ger-

GIAN AQUA (with double-occupancy all assets of roughly $19.8B, of which man builder, with deliveries of the LNG capacity pegged at 3,550 passengers around $18B was property/equipment, powered vessels out to 2031.

and featuring the industry’s ? rst slide and “other long-term assets”. The capi- Finally, the privately owned (but coaster) is due for delivery from Fin- tal stack shows long term debt totaling heavily resourced) MSC Cruises, is cantieri in March, 2025. Following a $13.4 (including the current portion); now operating nearly two dozen cruise trans-Atlantic repositioning voyage, it down from nearly $14.1 at year-end vessels and competing with the “Big will cover itineraries along the U.S. East 2023. Borrowings connected with two Three” + Disney. In Spring 2025, the

Coast to Bermuda and the Caribbean. A vessels for Oceania, and two for Seven company’s 6800+ passenger MSC sister, NORWEGIAN LUNA, will be Seas (both brands within NCLH) being WORLD AMERICA, being completed joining NCLH’s ? eet in Spring, 2026. constructed at Fincantieri with export at Chantiers de l’Atlantique, will join its

NCLH’s Oceania Cruises line is set to guarantees from the Italian export credit sister MSC WORLD EUROPA (which see delivery of 1,450 passenger capacity agency SACE S.p.A. delivered in late 2022) in cruising out of ships, with eyes focused on ALLURA Disney Cruise Line, part of the Miami. Both ships are LNG powered, (being built at a Fincantieri facility) set much larger Walt Disney Company with the 2025 addition using LNG-fed to commence voyages in Summer, 2025. (NYSE:DIS) with a ? ve vessel ? eet solid oxide fuel cell providing a por-

The parent company said, in a mid-2024 (and four ships already set for delivery tion of the electricity onboard and ? tted release, that: “…Oceania Cruises has between 2025-2027), is continuing its for shore power. Another sister, MSC two additional ships on order scheduled expansion. The $1.1 billion, 4,000-pas- WORLD ASIA, is slated for a mid-2026 for delivery in 2027 and 2028 or 2029.” senger LNG-powered DISNEY TREA- delivery from the yard in Saint Nazaire,

The Regent Seven Seas Cruises ? eet SURE began service in December 2024, before shifting over to its base in Miami.

will be seeing deliveries of two hybrid powered vessels with 850 passenger ca- pacity, SEVEN SEAS PRESTIGE (in 2026) and an unnamed sister due for 2029 delivery.

More Ships v. More Debt:

Walking a Fine Line

At CCL, its discussion of the order- ing for increasingly larger newbuilds, in a late 2024 regulatory ? ling, shines a spotlight on the need for balance and moderation in growth, as it was noted: “The company is following through on its measured capacity growth strategy of one to two ships per year on average, including just three ships scheduled for delivery through 2028. This will enable the company to utilize its substantial free cash ? ow to strategically improve its balance sheet by signi? cantly reduc- ing its leverage levels over the next several years.”

For the major cruise companies, bal- ancing the capital costs of bigger ships (which will bring in revenue) with con- tinued management of outstanding debt www.marinelink.com 31

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