Kloster 1991 Q3 Earnings

The Vard Group has reported a profitable third quarter for Kloster Cruise posting profits of $10.4 million for the period ended September 30, 1991, compared to $15.5 million in the same quarter last year.

For the first three quarters of 1991, however, Kloster accumulated a loss of $11.7 million compared to profits of $31.9 million in 1990. Included in the 1991 results is also a currency gain of $13.7 million.

Vard also reported that it will receive $43 million in the fourth quarter for the sale of the Sunward ll to Epirotiki Lines and that $9 million will be invested in the joint venture between Kloster and Epirotiki.

As previously reported, the Skyward has been chartere to Constantine Limited as of November 4, 1991, at a bareboat rate of $20,000 a day, or $7.1 million a year. In the agreement there is an option to purchase the ship for approximately $43 million.

In its third quarter report, the Vard Group stated that the restructuring of Kloster Cruise will be completed in the fourth quarter. "In this period, the restructuring will incur substantial costs and there will be a shortfall of revenue while the ships are being rebuilt."

Vard is very optimistic about the outlook stating that Norwegian Cruise Line will have a very modern and competitive fleet after delivery of two new ships in 1992 and 1993; that with two new ships sailing under the Royal Viking Line banner and reduced capacity in the luxury segment, it will it be able to increase load factors and per diems; and that it expects to improve earnings by Royal Cruise Line further although this company has generated profits every quarter since it was acquired by Kloster in 1989.

In addition, Kloster has reduced the number of employees on ships and shoreside by 10 percent.

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