Norwegian Cruise Line (NYSE: NCLH) reported Q4 EPS of ($2.33), $0.16 worse than the analyst estimate of ($2.17). Revenue for the quarter came in at $9.58 million versus the consensus estimate of $2.6 million.

2021 Outlook

As a consequence of the COVID-19 pandemic, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it will report a net loss for the first quarter ending March 31, 2021 and expects to report a net loss until the Company is able to resume voyages.

As of December 31, 2020, the Company had hedged approximately 59%, 37% and 15% of its total projected metric tons of fuel consumption for 2021, 2022 and 2023, respectively. The following table provides amounts hedged and price per barrel of heavy fuel oil (“HFO”) which is hedged utilizing U.S. Gulf Coast 3% (“USGC”) and marine gas oil (“MGO”) which is hedged utilizing Gasoil.

(1) These derivatives were de-designated for accounting purposes in the fourth quarter of 2020 but still represent economic hedges and may be re-designated in the future.

Anticipated total capital expenditures for first quarter 2021 are approximately $90 million which includes health and safety investments. The Company is not providing total capital expenditure guidance for full year 2021 or future years at this time given the uncertain and evolving current environment. However, after recent deferrals the Company’s anticipated expenditures related to ship construction contracts were $0.4 billion, $1.6 billion and $2.5 billion for the years ending December 31, 2021, 2022 and 2023, respectively. The Company has export credit financing in place for the anticipated expenditures related to ship construction contracts of $0.2 billion, $0.8 billion and $1.8 billion for the years ending December 31, 2021, 2022 and 2023, respectively. The impacts of COVID-19 on the shipyards where the Company’s ships are under construction, or will be constructed, have resulted in some minor delays in ship deliveries, and the impact of COVID-19 could result in additional delays in ship deliveries in the future, which may be prolonged.

Interest Expense, net is expected to be approximately $200 million for the first quarter 2021, which includes approximately $50 million of one-time debt modification costs1, and approximately $650 million for full year 2021. Depreciation and Amortization is expected to be approximately $170 million for the first quarter 2021 and approximately $700 million for full year 2021.

________________________1 Excludes approximately $10 million of associated lender fees incurred in the first quarter 2021 which are expected to be capitalized and amortized over the life of the associated loans.

For earnings history and earnings-related data on Norwegian Cruise Line (NCLH) click here.