NCLH plans to build eight new ships at Fincantieri

Four planned new Norwegian Cruise Line ships will be substantially larger than Prima-plus ships

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) yesterday unveiled the biggest newbuild program in its history. It has placed an order with Fincantieri for four new next-generation cruise ships: two for its Regent Seven Seas Cruises and two for its Oceania Cruises brands respectively. Additionally, it has signed a Letter of Intent (LOI) with Fincantieri for four ships for its Norwegian Cruise Line (NCL). Slated for delivery in 2030, 2032, 2034, and 2036, they will be the largest ever built for NCL brand, with a gross tonnage of approximately 200,000 tons and the capacity to accommodate around 5,000 passengers each, a significant increase on the 169 gross tons and 3,998 passenger capacity of the line’s largest current ship, Norwegian Encore.

The four ship order for NCL, which is still being finalized, would replace an earlier two-ship order for Oceania Cruises initially placed to secure availability at the shipyard.

In addition to the eight new ships, NCLH is to construct a multi-ship pier at Great Stirrup Cay, its private island destination in the Bahamas.

The eight new ships are scheduled for delivery over a ten-year period, between 2026 and 2036, and would add 25,000 new berths to the Norwegian fleet.

Following the delivery of four Prima-Plus class ships from 2025 through 2028, Norwegian Cruise Line is expected to take delivery of the four new 200,000-gross-ton ships in 2030, 2032, 2034 and 2036. B

Building on the success of its Allura Class ships, the last one being delivered in 2025, Oceania Cruises is scheduled to take delivery of two 86,000-gross-ton ships, each with a capacity of 1,450 guests in 2027 and 2029.

Following its award-winning Explorer Class ships, Regent Seven Seas Cruises is scheduled to take delivery of two 77,000-gross-ton ships, each with a capacity of 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,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings. “It also allows us to significantly leverage our operating scale, strengthen our commitment to innovation and enhance our ability to offer our guests new products and experiences, all while providing opportunities to enhance the efficiency of our fleet. We are likewise excited with the addition of a new pier at Great Stirrup Cay to support our increased capacity in the Caribbean and multiple ships to call on the island, enhancing our guest experience and bringing seamless and reliable access to our private island year-round.”

In partnership with Fincantieri, each brand will design its new ship class and focus on creating the largest, most efficient, and innovative vessels in its fleet. The new ship designs are expected to advance the journey towards decarbonization.

“Over the years, our long-standing relationship with Norwegian Cruise Line Holdings has been rooted in a shared vision for the future of maritime travel, consistently setting new standards for innovation, luxury, sustainability, and guest satisfaction in the cruise industry,” said Pierroberto Folgiero, CEO and managing director at Fincantieri. “We are thrilled to work on these new build orders and deliver emblematic cruise ships that will embody our shared legacy of excellence for generations to come.”

Norwegian has obtained export credit financing with favorable terms to fund 80% of the contract price of each of the two Oceania Cruises and Regent Seven Seas Cruises ships, subject to certain conditions. The ship orders for Norwegian Cruise Line remain subject to financing, currently underway.

Mark A. Kempa, chief financial officer of Norwegian Cruise Line Holdings, commented, “we expect that these strategic investments will secure our growth trajectory, significantly boost our earnings profile, and enhance shareholder value well into the future. With a favorable payment structure that includes pre-delivery financing and modest initial installment payments for these ship orders, we still anticipate strong net leverage reduction of 1.5 turns by the end of 2024, relative to 2023, and expect the company to continue reducing net leverage each year for the foreseeable future.”

NEW PIER DEVELOPMENT AT GREAT STIRRUP CAY

The new pier development at the NCLH’s private island in the Bahamas, Great Stirrup Cay, is slated to break ground in summer 2024 and be completed by late 2025 with an investment of approximately $150 million. The new pier will be constructed to simultaneously accommodate two large vessels of the company’s current and future ship classes.

• More details of the planned newbuild program in NCLH’s investor presentation