Star Cruises Group News

A poor operating performance and expensive valuation prompted analysts to downgrade Asia's largest cruise operator Star Cruises Group. The company reported it posted a loss last year following its acquisition of Norwegian cruise firm NCL Holdings. "We have downgraded it into a sell," said Teh Chi-Chang, analyst of SG Securities in Kuala Lumpur. Amelia Mehta of ING Barings also cut her rating from a hold to a sell, putting a price target of 36 cents while Teh cut his target from 78 cents to 46 cents. The group, part of Malaysian conglomerate Genting Bhd, recorded a net loss of $26 million after including interest expense of $84.2 million for NCL's acquisition. Star Cruises said its results were not comparable to 1999 as they included a 10-month contribution from NCL.

The Port of Shanghai is getting a new cruise passenger terminal. Southeast Asian nations are teaming up on a Web site for cruise travelers. Officials from China are using the 2008 Olympics to promote a triangle of northern cruise ports. And don't forget about us, says Taiwan. Here's Asia, cruising's new frontier. Accordng to The Ledger, representatives from the Asia-Pacific region attended the Seatrade Cruise Shipping Conference this week, beginning an aggressive marketing campaign with the goal of making Asia a competitor in the world cruise market. Many of them toured ports in Miami and Port Everglades to get a sense of U.S. port operations. Today, the Asia-Pacific region lags behind the Caribbean, Europe and Alaska in notoriety as a cruise destination.

Star Cruises will add another 2,000-guest purpose-built ship for Freestyle Cruising to the rapidly modernizing Norwegian Cruise Line (NCL) fleet. The yet-to-be-named ship will be delivered in spring of 2004 in time for the summer season. NCL has contracted with Northrop Grumman Ship Systems (NGSS) to buy all of the materials and equipment and the work performed to date on the two "Project America" vessels under construction at Northrop's Ingalls shipyard in Mississippi. The substantially completed hull of the first vessel, plus all of the associated equipment and materials, will be transported to Europe, where work will be completed in one of the major cruise ship building yards. NCL is in advanced discussions with European yards to determine which one will complete the ship.

The saga of the now-defunct American Classic Voyages' U.S. Lines has seemingly come to a close with Northrop Grumman Corporation reaching an agreement on August 19 to sell all structures and material associated with the cruise vessel program at the company's Ship Systems sector to Norwegian Cruise Line. Under the agreement, Norwegian Cruise Line will take possession by Sept. 30, 2002 of the nearly half-complete first ship and all associated equipment and materials, as well as material acquired by Northrop Grumman for a planned second ship. Approximately 350 Ship Systems employees are currently preparing the cruise ship for launching and towing. These ships were to have been known as the first cruise ships to be constructed in the U.S. in more than 30 years.

Norwegian Cruise Line canceled the weekly sailing of its ship Norway on Tuesday because of leaks in the fire sprinkler system, thwarting Caribbean vacation plans for more than 2,000 passengers stuck in Miami. As reported earlier today, the Norway had been scheduled to leave the Port of Miami on Sunday for a seven-day cruise to the western Caribbean. But the Coast Guard barred it from sailing after a surprise inspection found 106 poorly patched leaks in the pipes that supply water to the sprinkler system. Crew members had hoped to repair the problems and obtain clearance to sail by Monday night; the latest the 40-year-old ship could leave Miami and still complete its voyage. "Unfortunately this has not happened," NCL said in a statement announcing cancellation of the voyage on Tuesday.