Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) has revealed its most ambitious new build order to date, signaling a significant expansion plan aimed at enhancing its offerings and reinforcing its position as a leader in the cruise industry.
The company unveiled plans for a total of eight state-of-the-art vessels across its three acclaimed brands, representing nearly 25,000 additional berths. Alongside this impressive fleet expansion, Norwegian Cruise Line Holdings will embark on the construction of a multi-ship pier at Great Stirrup Cay, its esteemed private island destination in the Bahamas, and a premier Caribbean port of call.
Scheduled for delivery over a ten-year period spanning from 2026 to 2036, the new ship orders encompass a diverse range of vessel classes tailored to each brand. Norwegian Cruise Line is set to receive four approximately 200,000-gross-ton ships, each accommodating nearly 5,000 guests, starting from 2030. Oceania Cruises will add two 86,000-gross-ton ships with a capacity of 1,450 guests each in 2027 and 2029. Meanwhile, Regent Seven Seas Cruises is poised to welcome two 77,000-gross-ton ships, each hosting 850 guests, in 2026 and 2029.
"This strategic new-ship order across all three of our award-winning brands provides for the steady introduction of cutting-edge vessels into our fleet and solidifies our long-term growth," remarked Harry Sommer, President and CEO of Norwegian Cruise Line Holdings Ltd. Sommer highlighted the order as a means to leverage operational scale, drive innovation, and enhance guest experiences while fortifying fleet efficiency.
Each brand will craft its unique ship class in collaboration with Italian shipbuilder Fincantieri, prioritizing size, efficiency, and innovation. The designs are anticipated to advance the company's sustainability efforts and align with its commitment to decarbonization.
Pierroberto Folgiero, CEO and Managing Director at Fincantieri, expressed enthusiasm for the partnership, noting a shared commitment to maritime innovation, luxury, and sustainability. He described the collaboration as emblematic of a legacy of excellence that will endure for generations.
The company has secured export credit financing to fund 80 percent of the contract price for the Oceania Cruises and Regent Seven Seas Cruises ships, subject to certain conditions. Financing for the Norwegian Cruise Line ship orders is currently underway.
Mark A. Kempa, Chief Financial Officer of Norwegian Cruise Line Holdings, emphasized the strategic significance of these investments, projecting a positive impact on growth trajectory, earnings profile, and shareholder value. He anticipated a strong reduction in net leverage by the end of 2024, with continued improvement in the years ahead.
The groundbreaking new build order marks a pivotal moment for Norwegian Cruise Line Holdings, positioning the company for sustained leadership and innovation in the cruise vacation industry.
For further details, the company has scheduled a conference call on Tuesday, April 9, 2024, at 8:00 a.m. Eastern Time to discuss the announcement. The webcast link and slide presentation will be available on the company’s Investor Relations website.
Norwegian Cruise Line Holdings Ltd. operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, with a combined fleet of 32 ships and approximately 66,500 berths, offering itineraries to approximately 700 destinations worldwide. The company expects to add 13 additional ships across its three brands through 2036.