Kloster Cruise reported profits of $9.9 million in the third quarter ended September 30, 1992, compared to profits of $10.4 million in the same quarter in 1991.
For the first nine months of 1992, Kloster Cruise reported total profits of $9.7 million compared to a loss of $25.8 million for the same period last year.
According to a statement by VARD, parent company to Kloster Cruise, the results showed a marked improvement over 1991, but are still not satisfactory. The improved results were attributed to increased earnings by Royal Viking Line. The cruise market continues to experience pricing pressures as a result of weak U.S. economic growth and the delivery of new ships, according to Vard.
Vard also stated that efforts are underway to strengthen Kloster Cruise's capital base which it said is "necessary for the company to maintain market share and to ensure financial flexibility."
Knut Kloster, Jr., Chairman and CEO of Kloster Cruise, has also repeatedly stated that he intends to maintain the market share of the company's cruise divisions and that this means more newbuildings.
Plans for an IPO in the U.S. have been put on hold until 1993 or 1994. Other options include a possible private placement or bringing in a partner.
At press time, Yard shares traded for NOK 35 on the Oslo Stock Exchange.
"Two-Week Cruise Sale"
Norwegian Cruise Line recently announced a two-week two-for-one (second passenger free) sale on peak season December through March sailings, except Christmas and New Year's, in specified categories aboard the Norway, Seaward and Southward. Bookings have to be made between October 19 and November 6.
According to NCL, the pricing does not reflect softness in the winter market, but is a promotion to encourage people to book early.
In the meantime, NCL's new 1,246-passenger Dreamward starts service from Ft. Lauderdale on December 6.