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Carnival warns of flat net revenue yields in first quarter, higher costs

  • Written by Kari Reinikainen
  • Category: Top Headlines

A rise in fuel prices will erase $0.03 of the earnings per share of Carnival Corporation & plc, the world’s largest cruise shipping group, in the first quarter to 28 February, the company said in a statement.

“First quarter constant currency net revenue yields are expected to be flat with the prior year. Net cruise costs excluding fuel per available lower berth day (ALBD) in constant currency for the first quarter of 2019 are expected to increase by approximately 2.0% compared to the prior year,” Carnival said.

“Changes in fuel prices (including realized fuel derivatives) and changes in currency exchange rates compared to prior year are expected to decrease earnings by $0.03 per share,” Carnival stated..

“Based on the above factors, the company expects adjusted earnings per share for the first quarter 2019 to be in the range of $0.40 to $0.44 versus 2018 adjusted earnings per share of $0.52,” Carnival pointed out.

Carnival forecasts 2019 EPS to rise to $4.50 to $4.80 from $4.26 in 2018

  • Written by Kari Reinikainen
  • Category: Top Headlines

Carnival Corporation & plc, the world’s largest cruise shipping group, said it expects its earnings per share (EPS) for the financial year to 30 November 2019 to rise to the range of $4.50 to $4.80, compared to 2018 adjusted earnings per share of $4.26.

The company said in a statement that a this time, cumulative advance bookings for full year 2019 are considerably ahead of the prior year at prices that are in line with the prior year. “Pricing on bookings taken since September has been running in line on a comparable basis to the prior year while booking volumes are significantly higher compared to the prior year. As a result, even with higher capacity, there is less inventory remaining for sale than at the same time last year,’ Carnival said.

Arnold Donald, President and Chief Executive Officer, commented in a statement: "Based on continued strength in underlying fundamentals, we are poised to deliver another year of strong revenue and earnings growth, with booking volumes running significantly ahead of our higher capacity growth and net revenue yields expected to exceed last year's record levels (constant currency). We remain committed to driving demand in excess of measured capacity growth to continue the momentum into 2019 and beyond."

Based on current booking trends, the company expects full year 2019 constant currency net cruise revenues to be up approximately 5.5%, with capacity growth of 4.6%, and net revenue yields in constant currency expected to be up approximately 1.0% compared to the prior year.

The company expects full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 0.5 % compared to the prior year.

Changes in fuel prices (including realized fuel derivatives) and currency exchange rates are expected to increase earnings by $0.14 per share compared to the prior year. Voyage cancellations due to the delayed delivery of AIDAnova have impacted 2019 earnings by $0.04 per share.

 

Donald added, "Based on the foundation we have put in place we are well positioned to continue to drive shareholder returns as we execute along a path toward growing earnings and return on invested capital over time. We remain committed to the continued distribution of cash to shareholders through increasing dividends, currently totaling $1.4 billion annually, and opportunistic share repurchases, which have reached $4.6 billion since late 2015."

Carnival Corporation & plc final quarter net income falls to $494 million

  • Written by Kari Reinikainen
  • Category: Top Headlines

Carnival Corporation & plc, the world’s largest cruise shipping group, has reported fall in final quarter net income, but the figure for its full financial year 2018 increased, figures released by the company show.

In the three months to 30 November, net income fell to $494 million from $546 million in the same period last year. Operating income rose a fraction, to $552 million from $548 million, while revenues increase to $4.46 billion from $4.26 billion.

In the full financial year 2018, net profit reached $3.13 billion, a marked increased from 42.60 billion, year on. Operating income increased to $3.33 billion from $2.81 billion and revenues reached $18.89 billion compared to $17.51 billion in the 2017 financial year.

Arnold Donald, President and Chief Executive Officer  said in a statement: "We delivered strong fourth quarter earnings and record adjusted fourth quarter earnings to top off a record breaking year. In 2018, we grew net cruise revenue (constant currency) over five percent, achieving the highest revenue yields (constant currency) in our company's history, and producing double-digit adjusted earnings growth despite a significant drag from fuel and currency. More importantly, we achieved double-digit return on invested capital in line with the target we established five years ago.”

On an adjusted basis, final quarter net income of $492 million, or $0.70 EPS, compared to net income of $452 million, or $0.63 EPS, for the same period in prior year. “Adjusted net income excludes unrealized gains and losses on fuel derivatives and other net charges, totaling $2 million in net gains for 4Q 2018 and $94 million of net gains for 4Q 2017,” Carnival said.

Gross revenue yields (revenue per available lower berth day or "ALBD") increased 1.9%. In constant currency, net revenue yields increased 3.7% for the final quarter of 2018, better than September guidance of up 1.5% to 2.5%

Gross cruise costs including fuel per ALBD increased 2.4%. In constant currency, net cruise costs excluding fuel per ALBD decreased 0.5%, compared to September guidance of down 1.0% to 2.0%.

 

EBITA growth outpaced revenue increase in TUI’s cruise operations 2017-18

  • Written by Kari Reinikainen
  • Category: Top Headlines

Operating result (EBITA) of the cruise operations of TUI AG, the German travel company, increased by two and a half times as fast as revenues in the financial year to 30 September, the company said.

 Revenues grew by 10.7% to €901.9 million, but EBITA increased by 26.8% to €324.0 million, TUI said in uts 2018 annual report. The group operates total a fleet of 16 ships under three brands.

TUI Cruises, a joint venture with Royal Caribbean Cruises Ltd (RCCL), benefitted from the first Winter 2017 -18 of operations for Mein Schiff  6 and launched Mein Schiff 1 in May 2018. The fleet also benefitted from fewer dry dock days in FY 2018.

“Average daily rate increased versus prior year, driven by the sustained growth in demand for cruise in Germany, which remains a market with relatively low rates of cruise penetration, and in particular high demand for German language, premium all-inclusive product,’ TUI said.

Marella Cruises in the UK delivered the first Winter of operations for the Marella Discovery 2 and launched Marella Explorer in May. The older style Marella Majesty exited the  fleet in October 2017. “Average daily rate increased versus prior year, as we continue to deliver our modernisation programme and expansion in line with the UK cruise market,” the company stated.

The luxury and expedition market unit Hapag-Lloyd Cruises delivered a strong performance and an increase in earnings, with increased occupancy and average daily rate and a good operational performance offsetting the higher number of dry dock days.

In the financial year 2019, TUI  will launch three ships forits cruise brands. “Bookings for the new ships and the existing  eet continue to perform well. Overall, we therefore expect this segment to deliver growth in underlying EBITA of more than 10% in FY 2019,” the company noted.

In the light of investment decisions already taken and projects in the pipeline, we expect TUI Group’s net capex and financial investments to total around € 1.0 billion to1.2 billion in the financial 2019.

“This includes expected down payments on aircraft orders (excluding aircraft assets financed by debt or finance leases) and proceeds from the sale of  fixed assets. Capex mainly relates to the launch of new production and booking systems for our markets, maintenance and expansion of our hotel portfolio and the acquisition of two cruise ships, TUI concluded.

Hurtigruten’s Roald Amundsen introduced to the international media

  • Written by Teijo Niemelä
  • Category: Top Headlines

Kalle Id reporting from Ulsteinvik, Norway

Hurtigruten, the world’s largest expedition cruise line, and the Kleven shipyard today showcased the upcoming hybrid diesel-electric expedition ship MS Roald Amundsen to the international media in Ulsteinvik, Norway.

The Roald Amundsen is shaping up to be the most environmentally friendly expedition cruise ship thanks to its diesel engines complemented with batteries. The engine, battery and propulsion package, provided by Rolls-Royce, will help decrease the ship’s total emissions by circa 20% compared to vessel of a more conventional design. The purely technical solutions are complemented by Hurtigruten’s other sustainability efforts, such as an already-implemented ban on single-use plastics and doing away with the use of heavy fuel oil. With the new ship and the project to convert several existing vessels on the Norwegian coastal route to run on a combination of liquidized natural gas, biogas and battery power, the company hope to challenge the entire industry to step up their sustainability efforts.

At the same time, the Roald Amundsen will offer an unprecedented passenger experience with the new science center, a large edutainment venue onboard which will help passengers connect to the destination in a deeper, more immersive way already when they are en-route. In addition to the science center, the ship will offer lecture spaces within the Explorer Lounge & Bar on the ship’s top deck, and it will even be possible to arrange lectures in the ship’s multi-deck atrium, which will have the tallest led-screen afloat that can also be used for presentations. For the first time in Hurtigruten’s history, passengers will have three restaurants to choose from, while all passenger cabins with have either a window or a private balcony.

The Roald Amundsen will be delivered during Q1 of 2019 and will take passengers to Norway, Greenland, the Antarctica and – for the first time in Hurtigruten’s history – Alaska, where the company promise to ”do something completely different” from the mass-market ships that currently dominate the Alaskan market. The company currently have a firm contract for one sister ship, the MS Fridtjof Nansen, and a letter of intent for a third vessel. According to the Hurtigruten CEO Daniel Skjeldam, the company hopes from contract further newbuildings from the Kleven shipyard in the future to maintain and further develop the yard’s competence.

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