Vow (VOW) Status Update summary

Market trends and industry overview

• The cruise industry is dominated by four major players, controlling 82% of global capacity, with over 600,000 beds available worldwide.

• The industry has seen significant growth since the 1960s, with a current fleet of around 360 ships and a strong legacy of technological innovation.

• Recent years have seen a shift towards larger ships and increased order activity, with 8 contracts worth over $6 billion signed in 2024.

• Fleet growth is expected to continue at around 4% annually, with new builds concentrated in European shipyards.

• The global cruise passenger base is forecast to grow, with Asia (especially China) as a key driver, and profit per bed capacity rebounding post-pandemic.

Technology and sustainability advancements

• Advanced wastewater and waste management systems are being deployed, including pyrolysis units replacing incinerators, supporting compliance with stricter regulations.

• New ships are increasingly equipped with alternative fuels, especially LNG, and advanced energy-saving technologies, with 60% of ships delivered from 2024 being dual-fuel capable.

• Significant reductions in GHG emissions and food waste have been achieved, with Carnival reporting a 10% GHG reduction despite a 30% fleet capacity increase and a 42% reduction in food waste per person.

• Shore power connectivity, biofuel trials, and investments in hydrogen fuel cells and battery storage are expanding.

• The industry is often ahead of regulatory requirements, driving the adoption of new environmental standards and circular economy practices.

Business performance and outlook

• Technology providers have a strong order backlog, with NOK 1.2–1.3 billion in contracts and 35 cruise new builds scheduled for delivery.

• Recurring revenue streams are growing, with NOK 200 million annually from operational assistance and consumables.

• The average contract size for new builds has tripled, reflecting the trend toward larger, more complex ships.

• Retrofit projects are increasing, aligning with sustainability goals and extending the life of existing vessels.

• Profitability in the cruise sector has rebounded post-COVID, supporting continued investment in fleet renewal and technology.