Royal Caribbean Cruises, Limited (RCCL), the world’s second largest cruise shipping group, said the hurricanes of this autumn were unusually impactful because of when and where they hit and the net effect was a cost to the company in excess of $55 million or $0.26 per share.
RCCL reported third quarter EPS (earnings per share) of $3.49 compared to $3.21in the same period last year.
“The unprecedented series of hurricanes this summer devastated many people and places in Texas, Florida and the Caribbean and our sympathies go out to all those who suffered and are suffering losses. The repair and recovery efforts have been intense and most of the affected destinations served by our cruise ships have already been reopened or are about to be reopened,” RCCL said in a statement.
“Most of this impact was from lost revenue, but there were also direct costs associated with the storms and with the company's humanitarian efforts. In addition, there were significant timing shifts across a wide range of activities as expenses were shifted between quarters to adjust to the storms. Nevertheless, the company still expects to generate earnings for the year within the increased range of guidance provided prior to the storms,” RCCL said.