Hurtigruten has posted net income of NOK 62.0 million on revenues of NOK 1.1 billion for the second quarter, ended June 30, 2011, and compared to net income of NOK 142.2 million on revenues of NOK 1.2 billion for the same period last year.
For the first six months of this year, Hurtigruten, ran at a net loss of NOK 64 million on revenues of NOK 1.9 billion, compared to net income of NOK 8.5 million on revenues of NOK 1.9 billion last year.
The company attributed the result to one-time impairment charges, cancelled sailings, higher fuel costs and lower prices and volume in port-to-port traffic along the Norwegian coast.
Hurtigruten said that its operations has stabilized in recent months and that the outlook for 2012 is positive, with a sharp increase in advance sales – particularly in the Norwegian market due to the recent minute-by-minute TV coverage of a coastal sailing.
Year-over-year passenger cruise nights were up in terms of round-trip cruises, but down for port-to-port cruises, meaning that the company’s coastal service has been performing well as a cruise product, but carrying fewer local residents for transportation purposes. Round-trip cruise nights were 336,063 for the first nine months this year, compared to 331,787 last year. Port-to-port cruise nights dropped, however, from 180,748 last year to 174,145 this yearr.
Hurtigruten also took a financial hit when the owner of the Polar Star declared bankruptcy in May. Hurtigruten lost a charter season with 800 guests booked. There were also other cancellations due to various incidents, weather and technical issues. The explorer segment with the Fram, however, benefitted from higher load factors and better pricing.
The company also posted an impairment charge from losing a bid on bus service in Tromso.
Meanwhile, one of its ships is completing a charter as a housing vessel in the offshore industry in Australia. The contract revenue has been for $(Australian) 135 million or 18 months. There is an option to renew for another 18 months.