Kloster Cruise achieved earnings of $77.9 million in 1991 before interest and depreciation, but including foreign exchange gain. The result after interest was $23.2 million.
The net result, however, was a loss of $19.7 million for 1991 compared to net earnings of $35 million in 1990. The 1991 net result also includes profits of $1.6 million from the sale of the Sunward II and a foreign exchange gain of $13.7 million.
For the fourth quarter ended December 31, 1991, Kloster posted a net loss of $8 million compared to a loss of $1.1 million in the same quarter in 1990.
The 1991 result is attributed to the effects of the war in the Middle East; the recession in the United States as well as an extraordinary loss of earnings and non-recurring expenses in connection with the refurbishment of ships; staff reductions; and the restructuring of the company.
Trygve Hegnar, CEO of Kloster Cruise, has previously said that 1992 will show a dramatic improvement in earnings. Hegnar said this week that Royal Viking Line and Royal Cruise Line are already 70 percent booked for 1992 and that Norwegian Cruise Line is generating net per diems five to 10 percent above what was budgeted only two months ago.