Genting Hong Kong defers ship projects

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Written by Kari Reinikainen Kari Reinikainen

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Published: 02 September 2021 02 September 2021

Genting Hong Kong, which is the parent company of Crystal Cruises, Dream Cruise and Star Cruises, said it has deferred three newbuilding projects.

“The Group has deferred the construction of the Global II cruise ship and has suspended the construction of the Endeavor II and the Universal Class cruise ships. Management is currently finalising the timing of the shipbuilding plans and is in the midst of discussions with the German Government, the potential lenders and business partners for the financing of the construction of Global II and the revival of the construction of Endeavor II and Universal Class cruise ships,” the company said in a statement.

Global Dream is the first of the 208,000 gross ton ships intended for Dream Cruise, while Crystal Cruises recently took delivery of Crystal Endeavor, the first expedition ship of the line. The Universal class of ships of some 88,000 gross tons has been designed with the charter market in mind. All these ships had been intended to be built at MV Werften, which is part of the group.

“Further discussions with suppliers and contractors will be carried out when the revised shipbuilding plans are finalised. At this juncture, based on discussions with the suppliers and contractors, management is of the view that the Group will be able to defer the capital commitments of Global II amounting to US$458.9 million beyond 2021,” Genting Hong Kong said.

It also has an option to cancel the capital commitments related to the construction of Universal Class cruise ships of approximately $260.6 million for a compensation of approximately $13.4 million.

Genting Hong Kong reported a first half loss of $238.4 million, compared to a loss of $742.6 million in the same period last year. The loss was in line with the company’s recent guidance, according to which the figure should not exceed $330 million. Revenues fell to $182.3 million from $226.3 million.

DNV Maritime Forecast says decarbonising shipping could cost up to $800 billion

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Written by Kari Reinikainen Kari Reinikainen

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Published: 01 September 2021 01 September 2021

The classification society DNV said it has launched its latest Maritime Forecast to 2050, part of the Energy Transition Outlook (ETO) suite of reports.

“Conceived to help shipowners navigate the technologies and fuels needed to meet global greenhouse gas (GHG) targets, the report features an updated carbon risk management framework, including a new ‘decarbonization stairway’ model to help owners map a path to sustainability,” DNV said in a statement.

DNV forecasts that total CAPEX for onboard technology investments required to satisfy IMO decarbonisation ambitions will range from $250 billion and $800 billion (dependent on fleet size) between 2020 and 2050.

The new Maritime Forecast to 2050 – the fifth edition of its kind – features detailed case studies to help evaluate fuel and technology scenarios and compare competing solutions.

The report finds that the maritime energy transition is already gaining momentum, with around 12% of newbuilds currently ordered with alternative fuel systems.

This is double the 6% revealed by DNV’s 2019 Maritime Forecast report. However, less than 1% of ships currently in operation use alternative fuels, with the huge majority plying short-sea routes.

The 80-page report aims to assist an industry facing the dual challenge of increasingly stringent climate change targets and regulations coupled with uncertainty over future fuel choices, technology, and supply.

It is, according to DNV Maritime CEO Knut Ørbeck-Nilssen, “the grand challenge of our time.”

“Choosing the right fuel today for operations tomorrow is a daunting task that all owners must face up to,” said Ørbeck-Nilssen. “The business environment is changing in line with the natural one, leading not just to increased regulatory requirements, but also to new cargo-owner and consumer expectations and more rigorous demands from capital investors and institutions.

“A misstep today in newbuild fuel strategies can have damaging consequences for businesses and assets in the future. So, owners need practical, expert advice and smart solutions to ensure vessels stay competitive, compliant and commercially attractive over their lifetimes. This is where the Maritime Forecast to 2050 can help turn strategic uncertainty into confident decision-making.”

The report maps the shifting regulatory landscape, provides a status update on technology and alternative fuels, and views the energy transition from a wider perspective – investigating the financing of green onboard investments, as well as the need for rapid development of supply-side capacity for new fuels.

To support shipowners, DNV provides an updated framework for managing carbon risk in newbuilding designs, a techno-economic evaluation of fuel strategies, and the vessel design implications of those chosen approaches. The ‘decarbonization stairway’ is introduced to show how individual owners can adapt to stay below the required GHG emission trajectories.

Linda Sigrid Hammer, DNV Maritime Principal Consultant and Maritime Forecast to 2050 report lead author, said: “With between 1,000 and 2,000 ships expected to be ordered annually through 2030, there’s a real need for informed decisions that consider a diverse array of factors; from cost, to fuel storage and propulsion, through to flexibility in design, strategic approach, and fuel ready solutions. And of course, all of this is underpinned by the need for safety.

“Our revised framework allows for detailed assessments, providing support and expertise to mitigate the risks and uncertainties facing owners. The carbon neutral destination for the industry is clear, but the pathway is not. This report will help owners chart their way forwards.”

UK domestic cruises trigger significant repeat interest

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Written by Kari Reinikainen Kari Reinikainen

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Published: 23 August 2021 23 August 2021

Domestic cruises in the UK, often referred to as "seacations,” have triggered a considerable interest of potential repeat business, with onboard service as the strongest stand out feature, research conducted by the online retailer cruise.co.uk has shown.

Almost half (48%) of holidaymakers who have taken a UK ‘seacation’ this year are planning to book another one within the next 12 months. A number of cruise lines have offered seacations this year, which are domestic sailings that travel round Britain, and either sail the coastline or offer day visits to UK destinations as part of the voyage.

The finding was revealed by cruise specialist cruise.co.uk after it polled over 1,400 of its customers.

Round Britain sailings have been a cruise line mainstay for many years, but the majority of guests onboard have tended to be based overseas rather than from the UK.

The research also revealed that the onboard service was the highlight for most guests who have taken a seacation, with almost three-quarters (74%) citing it as one of the standout features. Next was the quality of food and drink (57%), followed by the onboard facilities (52%).

Respondents were also asked to rate the onboard safety measures out of 10; the average score came in at 8.9, representing a real vote of confidence for the steps that the industry has put in place to ensure guests can sail again.

Seacations will depart up to October this year, before starting again next spring.

cruise.co.uk has previously stated that seven-night seacations are most sought-after, which are offered by lines including P&O Cruises, Cunard, Celebrity and MSC.

Tony Andrews, deputy managing director of cruise.co.uk, said: “Seacations have been a real success story this year and it’s a pleasure to hear so much positive feedback from impressed guests. The outstanding onboard service, facilities and dining, combined with the health and wellbeing measures, have proved a winning formula.

“With staycations now well-established in the UK, we’re hopeful that the advantages of a seacation will similarly make it a popular holiday option for many years to come.”

Genting Hong Kong expects smaller first half loss

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Written by Kari Reinikainen Kari Reinikainen

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Published: 23 August 2021 23 August 2021

Genting Hong Kong, parent company of Dream Cruise, Crystal Cruises and Star cruises, forecast that its losses for the first six months of this year will be narrower than in the same period last year.

The company is expected to record a consolidated operating loss (before finance costs) of not more than $280 million and a consolidated net loss of not more than $330 million for the six months ended 30 June 2021.

This compares to a consolidated operating loss (before finance costs) of $323 million and a consolidated net loss of $743 million for the corresponding period in 2020.

The anticipated decrease in the unaudited consolidated net loss of the Group is mainly attributable to the following:

 cruises resumption: Explorer Dream in Taiwan since July 2020 till early May 2021 and World Dream in Singapore since November 2020;

 continued efforts to control the headcount and burn rates for vessels in layup;

 reduction in depreciation expense due to lower carrying amount of the Group’s assets following

impairment losses recorded against these assets in 2020;

 reduction in finance costs from debt restructuring;

 share of profit of Travellers International Hotel Group, Inc., an associate of the Group, in the

amount of approximately US$25 million was recorded in 1H2021; and

 lower impairment losses in respect of the Group’s assets in 1H2021 as compared to the first

half of 2020.

“The information in this announcement is based only on the preliminary review of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2021 and information currently available to the Company. Such information has not been reviewed by the independent auditors or the audit committee of the Company,” Genting Hong Kong said in a statement.