Norwegian Cruise Line (NYSE: NCLH) reported Q2 EPS of ($1.93), $0.06 better than the analyst estimate of ($1.99). Revenue for the quarter came in at $4.37 million versus the consensus estimate of $9.44 million.

2021 Outlook:

As a result 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 third quarter ending September 30, 2021 and expects to report a net loss until the Company is able to resume regular voyages.

As of June 30, 2021, the Company had hedged approximately 43%, 37% and 14% of its total projected metric tons of fuel consumption for the remainder of 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 and first quarter of 2021 but still represent economic hedges and may be re-designated in the future.

Anticipated non-newbuild capital expenditures for third quarter 2021 and full year 2021 are approximately $110 million and approximately $425 million which includes health and safety investments. The Company is not providing total capital expenditure guidance for future years at this time given the uncertain and evolving environment. However, after newbuild-related payment deferrals the Company’s anticipated expenditures related to ship construction contracts were $0.3 billion for the remainder of 2021 and $1.6 billion and $2.5 billion for the years ending December 31, 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 for the remainder of 2021 and $1.0 billion and $2.0 billion for the years ending December 31, 2022 and 2023, respectively.

Interest Expense, net is expected to be approximately $160 million for the third quarter 2021 and approximately $620 million for full year 2021, excluding losses on extinguishment of debt and debt modification costs. Depreciation and Amortization is expected to be approximately $175 million for the third quarter 2021 and approximately $700 million for full year 2021.

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