Royal Caribbean Group (RCG), the world’s second largest cruise shipping company, has reported a massive loss in the wake of the Covid-19 pandemic, it said in a statement.
The company reported US GAAP net loss of $5.8 billion or $27.05 per share compared to net income of $1.9 billion or $8.95 per share in the prior year. It also reported adjusted net loss of $3.9 billion or $18.31 per share for full year 2020 compared to adjusted net income of $2.0 billion or $9.54 per share in 2019.
For the final quarter of 2020, US GAAP net loss was $1.4 billion or $6.09 per share and adjusted net loss amounted to $1.1 billion or $5.02 per share. In 2019, RCG reached a $273.1 million net income, or $1.30 per share, in the final quarter, while and adjusted net income was $297.4 million or $1.42 per share for the fourth quarter.
"The COVID-19 pandemic is having a painful and profound impact on our world and our business; unquestionably, this crisis is the most difficult in the Company's history. But we have been impressed and grateful for the resourcefulness and agility of our team in responding to these unprecedented challenges. More importantly, we remain confident about the ability of our Company to recover and return to the positive trajectory we were on previously," said Richard D. Fain, Chairman and CEO.
Since the suspension of its global cruise operation, RCG has taken aggressive actions to enhance its liquidity through significant cost and capital reductions, cash preservation measures and by obtaining additional financing. “During 2020, the Company raised approximately $9.3 billion of new capital through a combination of bond issuances, common stock public offerings and other loan facilities,” it said, adding that given the current environment, it continues to work to bolster its liquidity, so it is well positioned for recovery.
RCG estimates its cash burn to be, on average, in the range of approximately $250 million to $290 million per month during a prolonged suspension of operations. “As the Company starts returning its fleet into service, it has (with respect to existing operations) and will incur incremental spend as it brings the ships out of their various levels of layup, returns the crew to the vessels, takes the necessary steps to ensure compliance with the recommended protocols and gears up its sales and marketing activities,” RCG said.
As of December 31, 2020, RCG had liquidity of approximately $4.4 billion, including $3.7 billion in cash and cash equivalents and a $0.7 billion commitment from a 364-day facility.
