In its latest business update, the cruise line company said that it was targeting a $515 million worth reduction in capital expenditures.<\/p>\n A significant portion of that figure, namely $345 million has been attributed to non-newbuild capital expenditures for 2020. A total of $170 million is assigned to reduced and deferred Capex for newbuild related payments through\u00a0March 31, 2021\u00a0which the company is currently finalizing. <\/p>\n Specifically, Export Credit Agencies (ECA) and NCL have already secured deferral of approximately\u00a0$385 million\u00a0of payments related to guaranteed financing by Euler Hermes Aktiengesellschaft (Hermes) through\u00a0April 2021. The cruise ship owner is also the process of finalizing the deferral of the remaining approximately\u00a0$155 million\u00a0of payments with its other ECA lenders. \u00a0 <\/p>\n Upon completion, NCL\u2019s next newbuild related payments would not be until\u00a0April 2021.\u00a0\u00a0The cruise liner company plans to introduce ten additional ships through 2027. <\/p>\n Other options to defer debt and refinance are also being reviewed.<\/p>\n To remind, back in March Norwegian secured a $675 million revolving credit facility and fully drew its existing $875 million loan pushing the total liquidity to $1.55 billion.<\/p>\n \u201cOur quick action to proactively and aggressively implement initiatives to preserve cash and enhance liquidity in this uncertain and fluid environment puts us in a stronger position to withstand the adverse financial effects of COVID-19,\u201d <\/em>said\u00a0Mark A. Kempa, executive vice president, and chief financial officer of\u00a0Norwegian Cruise Line Holdings<\/strong>.\u00a0<\/p>\n \u201cWe will not only benefit from the actions taken to strengthen our liquidity profile but will also benefit from a period of reduced capital expenditures with no newbuild deliveries until at least mid-2022.”<\/em><\/p>\n On the cost-cutting side, NCL said that all of its 28 cruise ships are being put in cold layups. Other initiatives include a company-wide hiring freeze, shortened working hours, and a 20 % salary cut for shoreside employees.<\/p>\n NCL’s estimated ongoing ship operating expenses and administrative operating costs are set to range between\u00a0$70 million\u00a0to\u00a0$110 million\u00a0per month during the suspension of operations. <\/p>\n If the temporary suspension of sailings is further extended, the Norwegian’s liquidity and financial position would likely continue to be significantly impacted. <\/p>\n Even though the exact financial estimate cannot be made at this time, Norwegian expects to report a net loss on both a\u00a0U.S.\u00a0GAAP and adjusted basis for the first quarter of 2020\u00a0and the full year.<\/p>\n The post Norwegian Cruise Line targets half a billion worth of cost cuts<\/a> appeared first on Offshore Energy<\/a>.<\/p>\n world maritime news<\/p>\n","protected":false},"excerpt":{"rendered":" On the heels of a significant economic blow from the suspension of global cruises due to the COVID-19 pandemic, Norwegian Cruise Line Holdings has had to launch a serious cost-cutting mission to stay afloat. In its latest business update, the cruise line company said that it was targeting a $515 million worth reduction in capital …<\/p>\n","protected":false},"author":1,"featured_media":8822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[2068,1462,1153,1611,1426,1650,2394,1593],"class_list":["post-8821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritime-news","tag-billion","tag-cost","tag-cruise","tag-cuts","tag-line","tag-norwegian","tag-targets","tag-worth"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/8821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=8821"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/8821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/8822"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=8821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=8821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=8821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Norwegian](\"https:\/\/cdn.offshorewind.biz\/file\/sites\/6\/2020\/04\/28112242\/Norwegian-jade1.jpg\")