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Fred. Olsen Cruise Lines returns to profit in second quarter

  • Written by Kari Reinikainen
  • Category: Top Headlines

Fred. Olsen Cruise Lines, which operates four ships on the UK market, returned to profit in second quarter of the year after losses caused by dry docking of two ships in the same period last year, according to Ganger Rolf ASA, which owns 50% of the shares in the cruise company.

Net profit amounted to NOK26 million compared to a NOK 34 million loss in the second quarter of last year.

Operating revenues in the quarter were NOK417 million (NOK 391 million). “The comparison with last year is distorted by the 2010 dockings of MV Balmoral (12 days in April/May) and MV Braemar (10 daysin May) and lower exchange rate for GBP against NOK,” Ganger Rolf said.

“Number of passenger days total 336 422(310 911) for the quarter and passenger yields have improved as a result of a yield-focused pricing strategy. Higher price on fuel oil (25% higher compared to last year) in the quarter impacted the result negatively compared with last year. Year to date the revenues were NOK 857 million (NOK 795 million) andEBITDA were NOK 100 million (NOK 96 million), Ganger Rolf stated.


All Leisure group cuts first half loss slightly to £4.2 million

  • Written by Kari Reinikainen
  • Category: Top Headlines

AllLeisure group, the listed UK based company that entails Swan Hellenic,Voyages ofDiscovery and Hebridean Island Cruises brands, reduced its net loss to £42million in the first six months of the year from £4.5 million in the same period in 2010. Revenues increased to £34.8 million from £32.8 million. Cash and unrestricted bank deposits decreased to £7.0 million on 30 June from £15.2million a year ago, while shareholders’ equity fell to £22.6 million from £25.6 million a year previously.

Commenting on the business outlook, Roger Allard, chairman said:” Despite the economic environment, remaining Summer 2011 capacity is currently 86% sold, including charters,(2010: 84%). However, these load factors have been achieved at lower yields and against a higher cost base.”

“Furthermore we envisage that fuel costs over the year will continue to rise and are now, in sterling terms, at their highest ever levels. Accordingly we believe fuel costs will be £1.3m higher than the previous financial year, and due to the continued weak UK economic environment it has not been possible to pass on this increase.”

The small Swan Hellenic river cruise programme for Summer 2011 has sold very well. ForWinter 2011/12 both mv Discovery and Minerva will be sailing to the Far-Eastbut it is also planned for mv Minerva to go into a dry dock.

“In addition to continued geo-political unrest, unprecedented natural disasters,the current global economic environment and continued low UK interest rates,the last six months has also seen no alleviation of the adverse cost environment that the Group is operating in – a situation primarily caused bythe weakness of sterling. Despite the difficult cost environment, it is encouraging that the strength of our brands and quality of our customer service have secured strong booking levels and for this reason I am confident that shareholders will see a significant improvement in returns once the adverse economic and exchange rate environment finally abates,” Allard said.

RCCL says woes on Mediterranean region turmoil deepen

  • Written by Kari Reinikainen
  • Category: Top Headlines

The ongoing conflicts in the Eastern Mediterranean and its spillover effects continues to create hesitation around travel to the region, says Royal Caribbean Cruises Ltd (RCCL), the second largest cruise shipping group in the world. However, other sectors of its business perform well.

“Some of this was already evident at the time of the company's last guidance.However, during the second quarter, the civil unrest in the EasternMediterranean expanded to other areas including Syria and Greece and the level of concern amongst travelers grew as tensions in the region dominated the headlines. This has resulted in a full year yield reduction of approximately150 basis points versus April guidance.”

Net Yields for the Mediterranean are now expected to be down approximately 4% for the year, which is in stark contrast with the rest of the company's portfolio.The impact related to the events in Japan was reasonably clear by the time ofthe last guidance. The impact on bookings was immediate, but the situation has now stabilized. The guidance for 2011 has not changed materially from previous guidance and the outlook going forward is very positive.

“In a reversal of the trends observed in April, the company's revenues have been negatively influenced by the strengthening of the U.S. Dollar relative to other currencies. Assuming current currency exchange rates, the company expects Net Yields for the full year on an as-reported basis to decline approximately 50 basis points from its previous guidance as a result of currency.”

The company noted that with the exception of the Eastern Mediterranean, it continues to observe strong demand for its products, especially the Caribbean,Alaska and Northern Europe. The strength of this demand (both rate and volume)reinforces that Eastern Mediterranean pricing softness this summer appears to be geopolitically related and that the economic demand for its products is strong. Further supporting this premise, excluding the Mediterranean, NetYields for the year are expected to be up approximately 8% (approximately 6% ona Constant-Currency basis), RCCL said.

RCCL second quarter net income rises to $93.5 million

  • Written by Kari Reinikainen
  • Category: Top Headlines

RoyalCaribbean Cruises Ltd. (RCCL), the second largest cruise shipping group in the world, announced second quarter net income of $93.5 million, or $0.43 pershare, versus $53.7 million, or $0.25 per share, in 2010.

Revenues improved to $1.8 billion in the second quarter of 2011 compared to $1.6 billion in the second quarter of 2010 as a result of capacity increases and yield improvements. Net Yields for the second quarter of 2011 increased 3.8% (0.8% on a Constant-Currency basis). Excluding Mediterranean sailings, Net Yields in the second quarter improved 9.8% (7.3% on a Constant-Currency basis)

Costs in the second quarter of 2011 were virtually flat on a constant-currency basis and most expense categories performed better than expected. NCC excluding fuel increased 2.3% (decreased 0.1% on a Constant-Currency basis).



RCCL finds error in interest expense accounting

  • Written by Kari Reinikainen
  • Category: Top Headlines

RoyalCaribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group,says it has identified an error in the previous accounting treatment of interest expense relating to its amortization of certain financing fees and has revised its past financial statements to reflect the correct accounting.

“Second quarter EPS was 47 cents before the Interest Expense Revision. After adjusting for the revision, the company reported earnings of 43 cents per share which is the midpoint of previous guidance range of 40 cents to 45 cents,” the company said in a statement.

“Excluding the Interest Expense Revision, full year 2011 EPS guidance is now expected to be $3.05 to $3.15, reflecting a 10 cent reduction to prior guidance oncontinuing pricing softness for Eastern Mediterranean sailings, partially offset by strong cost savings. The Interest Expense Revision is forecasted toreduce 2011 EPS by 20 cents resulting in full year 2011 EPS guidance of $2.85 to$2.95,” RCCL continued.