Kloster Cruise has reported a loss of $22.1 million for the first six months of 1991 including a $14.1 million foreign exchange profit. Since the cruise line reported a loss of $43 million in the first quarter, it means that the second quarter loss was $9.8 million. In the same 6-month period last year, the company reported a profit of $16.4 million.
The new Vard, parent company to Kloster Cruise, reported a total loss of $27.8 million for the first six months of 1991.
Vard was recently reorganized so that the company now is exclusively a cruise and ferry company. The reorganization took place on June 28 with retroactive effect from January 1, 1991. The loss was attributed to cruise cancellations following the war in the Mideast and cancellation of cruises by Royal Viking Line and Royal Cruise Line as ships were deployed in safer waters. Earnings were also eroded by significant discounting.
The restructuring of RVL was also said to have been a complex and costly process. In a prepared statement, it was repeated that Kloster expects to post a profit for the second half of 1991 and that RVL is expected to return to profitability in 1992, barring unforeseen occurrences.