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Regent Seven Seas’ third quarter net profit falls to $19.5 million

  • Written by Kari Reinikainen
  • Category: Top Headlines

Regent Seven Seas Cruises, the luxury cruise operator in the Prestige Cruise Holdings group, has reported a fall in third quarter net profit of $19.5 million from $27.0 million in the same period last year. However, the company less capacity in the latest quarter due to dry docking of a vessel, it said in a statement.

Commenting on the third quarter, the Company’s Chairman and CEO, Frank Del Rio, stated, “Regent’s luxury cruise experience continues to be very well received by both our guests and travel agency partners. We are thrilled with the record occupancy and yields we were able to obtain in the third quarter.”

“The Seven Seas Voyager’s drydock in September completes the ambitious $100 million plus upgrade program that we embarked upon nearly four years ago, and we believe the results are impressive. We continue to invest in our luxury fleet to provide our guests with the best possible vacation experience," he continued.

“Net Yield for the third quarter of 2011 was up 3.9%driven by higher pricing with Net Per Diem up 3.0% and occupancy increasing 0.8 percentage points. In the third quarter of 2011, we had a 6.8 percent reduction in capacity caused by a 17-day scheduled drydock for Seven Seas Voyager. There were no drydocks in the third quarter of 2010,” the company said.

Adjusted EBITDA was $40.6 million on revenue of $151.3 million for the third quarter of 2011, compared to Adjusted EBITDA of $47.5 million on revenue of $152.1 million for the third quarter of 2010.

Other key operating metrics for the third quarter of 2011 compared to the prior year are as follows:

Net Cruise Cost, excluding Fuel and Other expense, per APCD decreased 1.7%, to $278 in 2011 compared to $283 in 2010, mainly due to decreases in repair and maintenance expense and selling and administrative expense. Fuel expense increased 44.7%, or $3.0 million, reflecting higher prices. 

“Our economic hedging strategy was able to partially offset this increase, as we recognized a $1.3 million cash benefit on executed fuel hedge contracts during the quarter that offset 42.8% of the price increase. The realised gain of fuel derivatives was recorded in other income (expense) as these instruments do not qualify for hedge accounting.

Other expense was up $5.0 million primarily attributable to a 17-day scheduled drydock for the Seven Seas Voyager in 2011. There were no drydocks in the third quarter of 2010.

Revenues, profit weaken at NYK’s cruise business

  • Written by Kari Reinikainen
  • Category: Top Headlines

Both revenues and profit of the cruise operations of Nippon Yusen Kabushiki Kaisha (NYK) declined in the second quarter of the Tokyo based shipping giant’s financial year.

The group, which operates Asuka II on the Japanese market and Crystal Cruises with two upmarket vessels mainly on the US market, reported recurring profit of 0.2 billion yen for its cruise business, compared to a profit of 1.1 billion a year earlier. Revenues fell to 10.1 billion yen from 11.1 billion. The company’s financial year ends on 31 March.

“In the Japanese market, Asuka II suffered from weak demand following the earthquake, and the load factor declined from the previous year. In the North American market, Crystal Cruises enjoyed sales during the peak summer season and enjoyed a high load factor on par with the previous year. Costs rose, however, due to higher fuel prices. Overall, the Cruises segment posted lower revenues and earnings compared with the same period of the previous year,’ NYK said.

Higher bunker costs drag Fred. Olsen Cruise Lines to third quarter loss

  • Written by Kari Reinikainen
  • Category: Top Headlines

Fred. Olsen Cruise Lines, the UK based operator of four medium sized cruise ships, blamed high bunker costs for a net loss of NOK22 million it booked for the third quarter of the year, compared to a profit of NOK 19 million in the same period in 2010.

EBITDA (earnings before interest, taxation, depreciations and amortisations) also declined, to NOK 96 million from NOK 132 million, show figures of parent company Bonheur ASA, which is listed on the Oslo Stock Exchange.

For the first nine months of the year, Fred. Olsen Cruise Lines booked a net loss of NOK 13 million, which was a marked reduction from a NOK 22 million loss in the same period year earlier. EBITDA for the same period amounted to NOK 196 million, a reduction from NOK 228 million a year earlier.

Cunard Line to refit Queen Mary 2


Cunard Line has released details of the planned refit of the company’s flagship Queen Mary 2, in preparation for her eighth birthday in January 2012. With major refurbishments and redesigns of carpets, curtains, bedcovers and linens, and other enhancements, a cruise vacation will be even more appealing aboard the grandest ocean liner at sea.

Taking place at Blohm + Voss Shipyards in Hamburg, Germany, from 24 November through 7 December, the major soft goods refurbishments will comprise all staterooms, Canyon Ranch SpaClub, the Queens Grill and Princess Grill Restaurants, the Commodore Club, the Veuve Clicquot Champagne Bar, Sir Samuel’s, the Play Zone/Kids’ Zone, and a complete redesign of the Golden Lion Pub. To ensure that the latest changes will complement the ship’s signature elegance and glamour throughout, Cunard has again partnered with the noted Tillberg Design AB in Höganäs, Sweden, the company involved in Queen Mary 2’s original design.

“Queen Mary 2 is an iconic leader in the world of luxury ocean travel and continues to receive high ratings by guests and the cruise industry,” said Peter Shanks, president of Cunard Line. “A ship that still turns heads everywhere she goes, she is unquestionably the pride of our fleet. We are committed to maintaining that impeccable reputation, and this significant refurbishment is an important investment on behalf of our guests.”

The 14-day refit will require a team of thousands of workers replacing the equivalent of almost ten football pitches of carpet and manufacturing about 18 square miles of fabric into over 6,000 individual items. Specific plans include:

Staterooms - All 1,310 staterooms aboard Queen Mary 2 will receive a fresh look with new carpeting, curtains and beddings, and some will receive new furniture. The revised design will be in keeping with current designs but with an enhanced sense of luxurious comfort, as can be experienced in luxury hotels around the world.


Golden Lion Pub - With its increasingly popular traditional British pub lunch menus, busy bar, exciting sports events and nightly music offerings, the pub will benefit from a complete refurbishment and redesign to enhance its endearing appeal. The new design retains the British pub atmosphere and also evokes an American country club feel similar to the warm colours and plush seating in the same venues aboard sister ships Queen Victoria and Queen Elizabeth. Upgraded television screens will also be installed.

Canyon Ranch SpaClub - An extensive refurbishment of the first Canyon Ranch SpaClub at sea will include the teak surrounds of the hydrotherapy pool and adjacent wet areas, and a general upgrade of all the facilities. In addition, new exercise machines in the fitness centre and new and improved features in the Beauty Salon will be installed.


Queens Grill and Princess Grill Restaurants - A new, lighter carpet design for both of Queen Mary 2’s exclusive Grill restaurants will enhance the existing ambience, maintaining the reputation of these fine dining venues as among the best at sea or on land.

Commodore Club - One of the most visited public rooms aboard Queen Mary 2, this breathtaking lounge overlooking her bow will be refreshed with a new carpet design and additions to the white leather furnishings of chairs, sofas and bar stools. Veuve Clicquot Champagne Bar - A popular space especially on Transatlantic Crossings, this venue featuring the exquisite Veuve Clicquot brand of champagne will see a new carpet and soft furnishings design.

Sir Samuel’s - This busy venue which features specialty coffees during the day and an impressive menu of wines at night, will receive a new compliment of carpeting and furniture coverings.

The Play Zone/Kids’ Zone – Cunard’s first-rate facilities for younger guests will undergo a complete refurbishment, including new soft play areas, plus upgrades to the very latest in electronic gaming technology and entertainment.

Carpeting of public areas, central walkways and landings on Decks 2 and 3 will also be completed, which began with the ship’s last refit in 2008. In addition to the current major refit, when Queen Mary 2 returns to service on 8 December, she will introduce several new on board features, details of which will be disclosed soon.

Mitsubishi Heavy Industries and Carnival Corporation & plc signs the final contract for AIDA newbuildings

  • Written by Teijo Niemelä
  • Category: Top Headlines

Mitsubishi Heavy Industries, Ltd. (MHI) has completed shipbuilding contracts with Carnival Corporation & plc, for the construction of two large-sized cruise ships for Carnival's AIDA Cruises brand. Delivery of the two ships is scheduled for spring 2015 and spring 2016 from MHI's shipyard in Nagasaki. The shipbuilding contracts are subject to financing.

The two 125,000 gross tonnage, 3,250 passenger ships will be the largest ever constructed for AIDA Cruises. The event marks the second new shipbuilding order for MHI from the Carnival group and the third and fourth cruise ships built by MHI for the group. Earlier, MHI built two 116,000 gross ton ships for Princess Cruises: the Diamond Princess and Sapphire Princess, both delivered in 2004.

Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of 10 cruise brands operating in North America, Europe, Australia and Asia, including Costa Cruises, Princess Cruises and AIDA Cruises. Altogether the group currently operates 101 ships, with 10 new ships scheduled for delivery between 2012 and 2016.

Going forward MHI will continue to combine its accumulated comprehensive capabilities and advanced technologies in shipbuilding to attract further new orders for large cruise ships.

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