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Share This article Share Norwegian Cruise stock is down 7.7% in after-hours trading on Tuesday, with the average price at $3.68 a share.
The company said it had earned $13.3 million in the last quarter, a strong showing for a company that is a major supplier of cruise ships.
Shares of Norwegian Cruise, which is part of Norwegian Air Group, have fallen as much as 35% since the start of the year, when the company announced plans to build a new cruise ship terminal.
Oil prices have slumped to near-record lows, prompting some investors to turn to stocks.
But the stock market is still trading well below $60 a share, making stocks even more attractive to investors.
For the first time in more than a decade, Norway’s share of the global cruise ship market is down below 50%.
Norway’s biggest cruise ship operator, Norwegian Cruise Cruises, has announced plans for a new terminal in Shanghai, China, and said it plans to sell its remaining cruise ship fleet to raise cash.
Norwegian Cruise has a market value of $2.8 billion.
A spokesperson for the company said the company’s revenue for the year ending in June was $12.3 billion, a slight decline from the previous year.
Norwegian Cruises is the biggest operator of cruise ship service in the world, according to a recent report by the U.K.-based Institute of International Economics.
It operates more than 5,000 ships worldwide.
It said it expected its annual operating profit to be $2 billion to $3 billion in 2019, based on assumptions that passenger travel would remain stable.
Norwegian cruise shares have been up more than 8% since late March.
Norwegian said the slump in the cruise industry and falling oil prices were a major factor behind the company.
“We believe the current oil price decline has contributed to the decline in Norwegian Cruise’s share price,” the spokesperson said.
Norwegian has been the world’s biggest producer of cruise liners, with a fleet of more than 4,000 vessels.
The Norwegian operator is the largest operator of a cruise ship charter service in North America, with more than 2,000 flights.
The carrier also owns a fleet that operates a number of cruise line passenger and cargo services.