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Oceania's Insignia Update: Part of World Cruise CancelledDecember 29, 2014 By: Newswire
Oceania Cruises has released new details on the impact of the fire onboard Insignia.
The timing of the repairs has resulted in the cancellation of the first three legs of Insignia's Around the World in 180 Days cruise, which was scheduled to depart Miami on January 10, 2015. This modified voyage will now commence on March 22, 2015, and depart from Singapore.
The ship had experienced a fire in the engine room while docked in St. Lucia on December 11 during a ten-day voyage that departed San Juan, Puerto Rico, on December 7, resulting in the cancellation of the remainder of the sailing. The vessel has been taken out of service and the Company anticipates repair efforts to take approximately nine weeks. A 24-day voyage which had been scheduled to depart Miami on December 17, 2014, was also cancelled.
The financial impact on the fourth quarter of 2014 and the first quarter of 2015 is estimated to be a reduction in earnings of approximately $0.05 and $0.05 per share, net of insurance proceeds, respectively. The Company reiterates its prior full year 2014 Adjusted EPS guidance of $2.28 to $2.32. The guidance provided excluded the results of the acquisition of Prestige Cruises International, Inc., parent company of Oceania Cruises, which closed in the fourth quarter of 2014 and also excludes the financial impacts from this incident.
"The timing of repairs has unfortunately required the cancellation of Insignia's holiday voyage along with the modification of the world cruise," said Kevin Sheehan, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. "We understand how disappointing this news must be to our valued guests and we extend our sincere appreciation for their cooperation and understanding."