Kloster Cruise has reported a loss of $2.7 million in the first quarter ended March 31, 1992 compared to a loss of $4.3 million in the first quarter of 1991.
Although Kloster reported a loss, the operating result was much improved over last year's operating loss of $18.4 million. Last year, a currency gain reduced the net loss.
The first quarter result did not include proceeds from the sale of the Sunward.
According to Trygve Hegnar, President and CEO of Kloster Cruise, Vard, parent company to Kloster Cruise, is planning to reduce its ownership in the cruise company following new Norwegian tax regulations making Norwegian-owned subsidiaries registered in so-called tax havens abroad liable for Norwegian tax if they are more than 50 percent owned by a Norwegian company. Kloster Cruise is registered in Bermuda but is wholly owned by Yard. The new tax is 28 percent.
Hegnar said that an initial public stock offering in the United States was most likely. Finalization of plans are not expected for some time, however. An IPO will also depend on market conditions at the time and Kloster's earnings performance.
Hegnar also said that he expected Kloster Cruise to post strong earnings in the second quarter and even stronger earnings in the third quarter.
In Norway, the market has reacted favorably to the sale and at press time Yard's shares traded for about NOK 87.50 compared to NOK 78 before the announcement.
An attempt by Kloster to go public in the Unites States in 1987 was aborted by the October Wall Street crash. At that time, Kloster planned to raise up to $110 million by selling 20 percent of its shares to the public.
Last fall, a deal between Kloster and the Overseas Shipholding Group, whereby OSG would invest up to $225 million in Norwegian Cruise Line, was called off.
Also, according to the first quarter report from Vard, future sales of aging tonnage will be adjusted in accordance with the delivery dates for new ships and market conditions.