Norwegian estimates impact of Insignia cruise ship fire

A recent engine room fire aboard one of its cruise ships is expected to reduce earnings for the fourth quarter of 2014 and first quarter of 2015 earnings by about 5 cents a share in each period, Miami-based Norwegian Cruise Line Holdings said this week.

The estimated financial impact on earnings excludes insurance proceeds, Norwegian said in a news release.

On Dec. 11 the Insignia cruise ship operated by Norwegian's premium cruise brand Oceania Cruises experienced a fire in its engine room while docked in St. Lucia during a 10-day cruise.

The incident resulted in the cancellation of the remainder of the cruise that had departed San Juan, Puerto Rico on Dec. 7.

The 684-passenger Insignia was taken out of service and Norwegian said it expects repairs to take about nine weeks.

Cruises cancelled because of the repairs include a 24-day voyage scheduled to depart Miami on Dec. 17 and the first three legs of the ship's Around the World in 180 Days cruise, set to leave Miami on Jan. 10.

A modified world cruise will now sail on March 22, departing from Singapore, Norwegian said.

"We understand how disappointing this news must be to our valued guests and we extend our sincere appreciation for their cooperation and understanding," said Kevin Sheehan, Norwegian president and CEO.

Despite the expected earnings hit, Norwegian said it's reiterating its prior full-year 2014 adjusted earnings per-share guidance of $2.28 to $2.32, which had excluded results of its acquisition of Oceania's former parent Prestige Cruises International, Inc. which closed in the fourth quarter. It also excluded the financial impacts from the engine fire incident.

Norwegian is the parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises and together the three brands operate 21 ships that visit more than 430 destinations worldwide.

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Norwegian estimates impact of Insignia cruise ship fire