MSC Cruises extends Formula 1 global partnership deal

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Written by Teijo Niemelä Teijo Niemelä

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Published: 05 May 2023 05 May 2023

MSC Cruises announced today that the world’s fastest-growing cruise line has extended its global partnership deal with Formula 1. The announcement took place in Miami on the eve of the Formula 1 Grand Prix and will see MSC Cruises continue as Official Cruise Partner of Formula 1 through to the end of the 2026 FIA Formula 1 World Championship.

The continuing growth of interest in Formula 1 around the world, which has been particularly strong in key markets for MSC Cruises, has seen the existing global partnership agreement achieve strong results for the brand and its product portfolio. Encouraged by the success of bringing these two premium brands together, MSC Cruises will seek to further activate the partnership through an expanded program.

As part of the agreement, MSC Cruises will bring ships during select Grand Prix weekends to offer a unique hospitality experience from track to ship. The first of these will launch when MSC Virtuosa makes her way to Abu Dhabi for the final round of the 2023 Formula 1 season, offering unique all-access accommodation, hospitality and transportation packages for fans and VIPs. This initial product offering will grow under the extension of the partnership with more ships and races to come during the 2024 season and beyond.

MSC Cruises was also confirmed as the title sponsor of the 2023 Formula 1 Belgian Grand Prix and the brand will have an engaging activation for racegoers within the fan zone. Further title sponsorships will be revealed at selected Formula 1 Grands Prix during the 2024 World championship season.

Pierfrancesco Vago, Executive Chairman MSC Cruises commented, “Formula 1 and MSC Cruises are great partners on many levels and our successes are founded in teamwork. Not only this, but we are both driving towards sustainable change. We want to build the future of our industries and leave a lasting legacy for generations to come. We are both working at the forefront of our industries and helping to make a real difference. And this is why we are committed to Formula 1 for the long term and have extended our sponsorship as Global Partner. We look forward to this special partnership going from strength to strength.”

Stefano Domenicali, President & CEO of Formula 1, said, “We're excited to extend our partnership with MSC Cruises, as both our brands share a commitment to innovation and excellence. This collaboration has brought exceptional results, and we look forward to enhancing our relationship further. Together, we'll continue pushing boundaries and setting new benchmarks in sports and hospitality.”

Meyer Turku Group reports slightly reduced net loss for 2022

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Written by Kari Reinikainen Kari Reinikainen

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Published: 05 May 2023 05 May 2023

Meyer Turku Group, the Finnish cruise ship and specialist vessel builder, said its revenues and operating profit increased significantly and net loss was reduced slightly last year compared to 2021.

Net loss narrowed to €15.6 million last year from €17.0 million in 2021, while operating result increased to €20.3 million from €10.8 million. Revenues rose to €1,295 million from €1,079 million.

Meyer Turku CEO Tim Meyer comments on the result by saying:"During 2022, we were particularly affected by the difficult availability of materials and overall increased costs, especially on materials and financing.”

“Despite the unexpected events of the last few years, we have been able to keep the shipyard fully operational, and we are currently preparing for the sea trial of the Icon of the Seas in mid-June. The situation has been made possible by an effective cooperation with all our stakeholders. Internally, our company's change program supports us in improving profitability.,” he said in a statement.

“We are continuing our efforts to stay the forerunner of the green transition in the cruise industry. It is a big challenge and at the same time a great opportunity for us. We are focusing also this year on new technologies and continuously searching for new talents to join us on our journey,” Me yer said

In November 2022, Meyer Turku last delivered to Carnival Cruise Line, the company's 50th anniversary ship Carnival Celebration. Currently, in the outfitting pier there is the Icon of the Seas, which will be the world's most advanced and largest cruise ship when delivered to the Royal Caribbean International in late 2023.

Mein Schiff 7, which will be delivered to TUI Cruises in 2024, and Icon 2, to be completed in 2025, are also under construction at the shipyard. In addition to these, Icon 3, that will be completed in 2026, is included in the Meyer Turku order book.

Meyer Turku will also be delivering two multi-purpose offshore patrol vessels to the Finnish Border Guard in 2025 and 2026, the company said.

Image: Icon of the Seas at the fitting out berth of Meyer Turku on 05 May 2023. Photo credit: Christer Gorschelnik

SH Diana sets sail for Arctic following Amsterdam naming ceremony

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Written by Kari Reinikainen Kari Reinikainen

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Published: 04 May 2023 04 May 2023

SH Diana, the third ship of the Nicosia based expedition cruise operator Swan Hellenicis now on its way to Tromsø for an 11-day cruise of fjord exploration that opens its Arctic season following a naming ceremony in Amsterdam.

The vessel was named by Valerie Ann Wilson, Founder and CEO of Valerie Wilson Travel, in the presence of Swan Hellenic Senior Management, local dignitaries, VIP guests, the media and members of the cruise and travel industries from around the world, the company said in a statement.

Royal Caribbean significantly raises guidance for 2023 EPS

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Written by Kari Reinikainen Kari Reinikainen

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Published: 04 May 2023 04 May 2023

Royal Caribbean Group said that as a result of a record-breaking WAVE season and accelerating demand for its cruise experiences, the company is increasing its 2023 Adjusted Earnings per Share (EPS) guidance to $4.40 – $4.80.

This compares with an earlier guidance of $3.00 to $3.60, published in the winter when the company released its 2022 result statement.

Full Year 2023 Outlook:

• Net Yields are expected to increase 6.25% to 7.25% as-reported and 6.75% to 7.75% in Constant-Currency, compared to 2019.
• NCC, excluding Fuel, per APCD is expected to increase 5.2% to 6.2% as-reported and 5.5% to 6.5% in Constant Currency, compared to 2019.
• The company expects to significantly exceed prior record Adjusted EBITDA, achieved in 2019.
• Adjusted Earnings per Share for the full year are expected to be in the range of $4.40 to $4.80 per share.

Second Quarter 2023 Outlook:

• Net Yields are expected to increase 9.6% to 10.1% as-reported and 10.1% to 10.6% in Constant-Currency, compared to the second quarter of 2019.
• NCC, excluding Fuel, per APCD is expected to increase approximately 8.6% as-reported and approximately 8.9% in Constant Currency, compared to second quarter 2019.
• Adjusted Earnings per Share for the second quarter are expected to be in the range of $1.50 to $1.60 per share.

 

Update on Bookings

Booking volumes in the first quarter were significantly higher than the corresponding period in 2019 and were considerably better than expected. This year, WAVE started earlier and extended further, generating a record level of bookings. These strong booking trends resulted in an acceleration of the company’s booked position in relation to prior years. In addition, the company is generating significantly more bookings at meaningfully  higher prices than in prior years, particularly from the North American consumer. 

The remarkable WAVE booking period resulted in strong close-in demand at higher prices for the first quarter, and enabled a significant improvement in revenue expectations for all three remaining quarters. The increase in yield expectations for the year is  predominantly related to higher load factors in the first quarter and higher prices for all four quarters, especially for Caribbean sailings. Consumer spending onboard, as well as pre-cruise purchases, continue to exceed 2019 levels driven by greater participation at higher prices. The company expects load factors to reach historical levels by late spring.

As of March 31, 2023, the Group's customer deposit balance was at a record $5.3 billion.  

Fuel Expense

Bunker pricing net of hedging for the first quarter was $733 per metric ton and consumption was 411,000 metric tons.

The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on today's fuel prices, the company has included $276 million of fuel expense in its second quarter guidance at a forecasted consumption of 409,000 which is 55% hedged via swaps. 

Forecasted consumption is 54% hedged via swaps for the remainder of  2023, 25% and 5% hedged for 2024 and 2025, respectively. The annual average cost per metric ton of the hedge portfolio is approximately $577, $664, and $753 for 2023, 2024, and 2025, respectively. 

The higher average cost in 2024 is driven primarily by the hedged fuel mix with Marine Gas Oil ("MGO") consumption hedged higher than Intermediate Fuel Oil ("IFO") consumption. The higher average cost in 2025 is driven by only MGO consumption hedged that year.