Norwegian Cruise Line Counts Losses after Insignia Fire
Miami-based cruise ship operator Norwegian Cruise Line has quantified the financial impact of the engine room fire on board Oceania Cruises’ Insignia which killed one crewmember and two contractors on December 11.
The incident occurred while Insignia was docked in St. Lucia during a ten-day voyage that departed San Juan, Puerto Rico on December 7, resulting in the cancellation of the remainder of the sailing. The vessel has been taken out of service and the company anticipates repair efforts to take approximately nine weeks.
The timing of the repairs results in the cancellation of a 24-day voyage which had been scheduled to depart Miami on December 17, 2014 along with the first three legs of Insignia’s Around the World in 180 Days cruise, which was scheduled to depart Miami on January 10, 2015. This modified voyage will now commence on March 22, 2015 and depart from Singapore.
The financial impact on the fourth quarter of 2014 and the first quarter of 2015 is estimated to be a reduction in earnings of approximately USD 0.05 and USD 0.05 per share, net of insurance proceeds, respectively.
“The timing of repairs has unfortunately required the cancellation of Insignia’s holiday voyage along with the modification of the world cruise,” said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.
The U.S. Coast Guard and the National Transportation Safety Board have assembled a joint investigative team to look into the accident.
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