Royal Caribbean Group third quarter loss widens slightly to $1.4 billion

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Written by Kari Reinikainen Kari Reinikainen

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Published: 01 November 2021 01 November 2021

Royal Caribbean Group, the world’s second largest cruise shipping company that has a fleet of 61 ships, said its third quarter loss had widened slightly, but there were positive signs about the market and the outlook.

Net loss widened to $1.4 billion from $1.3 billion in the same period last year. More than half a million people had sailed the ships of the five brands of the Group since the restart of operations and both satisfaction scores and onboard spending per passenger had reached the highest levels in the company’s 51 year history.

"The ships that operated the Group's core Caribbean, Alaska, and Europe itineraries in the third quarter achieved a load factor of 44%. Core itineraries exclude sailings during the early ramp-up period of up to four weeks and also exclude specialized itineraries implemented during the COVID period (e.g., Singapore, Cyprus),' the company said in a statement.

"Total revenues per Passenger Cruise Day in the third quarter was up 12% versus record 2019 levels driven mainly by strong onboard revenue performance. Ships in core itineraries in the third quarter were cash flow accretive excluding start-up costs," RCL Group said.

Royal Caribbean Group announces “Destination Net Zero” — program to achieve net zero emissions by 2050

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Written by Teijo Niemelä Teijo Niemelä

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Published: 01 November 2021 01 November 2021

Royal Caribbean Group has announced a giant step on its sustainability journey: Destination Net Zero, a comprehensive decarbonization strategy that includes pledging to establish Science-Based Targets (SBT) and achieving net zero emissions by 2050.

“Decades ago, we set out on a course to advance sustainability; our vision now is to realize carbon-free cruising over the next two decades,” said Richard Fain, chairman and CEO, Royal Caribbean Group. “Today we are announcing the most important destination of all in our company’s history – Destination Net Zero – an ambitious strategy to cut emissions, protect our oceans, and ensure the viability of the hundreds of destinations that our guests and crew members care deeply about.”

INTRODUCING DESTINATION NET ZERO

Royal Caribbean Group’s Destination Net Zero builds on decades of progress and a deep sense of responsibility to embed sustainability throughout the organization.

Over 18 to 24 months, the cruise company will develop goals to be validated by the Science Based Targets initiative (SBTi), the first such pledge for the cruise industry. The work will begin following the publication of SBTi’s marine transport methodology. Science-based targets show companies how much, and how quickly, they need to reduce their greenhouse gas (GHG) emissions to help limit global warming.

Along the journey to net zero, key milestones will be critical to making progress. One of the most ambitious milestones includes the delivery of a net zero cruise ship by 2035. To achieve these ambitions, the company will rely on strong partnerships with governments, suppliers and shipyards to develop alternative and accessible fuels and technology.

The company’s focus on achieving these measurable goals builds on its track record of designing and operating some of the most energy efficient ships on the seas. Thanks to optimized hull design and system upgrades such as AC chillers utilizing 30-40% less energy, Royal Caribbean Group has consistently delivered a new generation of ships 20-25% more efficient than their predecessors.

From Silversea Cruises’ ‘Project Evolution’ – the cruise industry’s first hybrid-powered ship set to debut summer 2023 – to the wind farm in Kansas that will offset up to 12% of our scope 1 and 2 emissions per year, Royal Caribbean Group is already executing on its Destination Net Zero strategy to drive the development of emissions-reducing technology and alternative fuel solutions.

“Royal Caribbean Group has a history of innovating in every aspect and level of the company,” said William K. Reilly, chairman, Royal Caribbean Group’s board of directors’ safety, environment, and health committee. “This is another important step on the serious and ambitious path to preserve the health and allure of the sea and the beauty of the oceans.”

Destination Net Zero’s four-pronged approach includes:

– Modernization of our global brands fleet through the introduction of 13 new energy-efficient and alternatively fueled vessels, including its recently announced ‘Project Evolution’ — the industry’s first ship to remove all local emissions while at port.
– Continued investment in energy efficiency programs for its fleet, including energy saving technologies, enhanced data systems and digitalization.
– Development of alternative fuel and alternative power solutions.
– Optimized deployment and integration of strategic shore-based supply chains.

THE NEXT CHAPTER OF A 30-YEAR VOYAGE

Royal Caribbean Group’s journey to reducing its environmental footprint began nearly 30 years ago with Save the Waves, an ambitious effort that grew from a recycling program into a company-wide approach to embedding challenging, achievable, measurable sustainability targets into the bedrock of the company’s culture. Over the ensuing three decades, protecting the planet’s finite natural resources evolved organically from a choice to a way of life for the company and its employees.

In 2016, the Group built on this legacy of progress and commitment by embarking on a partnership with World Wildlife Fund (WWF). With the goal of ensuring the long-term health of the oceans and fulfilling a vision of more sustainable cruising, Royal Caribbean Group established ambitious initial 2020 targets to reduce its environmental footprint, support ocean conservation globally and raise awareness among the company’s more than 5 million passengers about the importance of ocean conservation. Earlier this year, it announced it had met or exceeded its 2020 goals, with the exception of a sustainable seafood sourcing target (now expected to be met by 2022) that was impacted by the travel suspension from the pandemic.

“Destination Net Zero will help guide our decision-making in the years to come and builds on Royal Caribbean Group’s continuous improvement mantra,” said Silvia Garrigo, Royal Caribbean Group chief Environmental Social Governance (ESG) Officer. “While we may not have all the answers now, this comprehensive company-wide strategy amplifies our focus on long-term emissions reduction and provides us a roadmap for how to get there.”

“Ensuring the long-term health of our oceans requires collective action to effectively address climate change and limit warming to 1.5C,” said Carter Roberts, president & CEO of WWF. “Through our partnership, Royal Caribbean Group has been on a journey to improve their overall sustainability. Achieving net zero emissions no later than 2050 will require innovation and collaboration at scale, and WWF looks forward to working together to make progress toward this milestone.”

Successful sea trials and coin ceremony for Costa Toscana

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Written by Teijo Niemelä Teijo Niemelä

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Published: 31 October 2021 31 October 2021

Work continues on the construction of Costa Toscana, Costa Cruises' new flagship powered by liquefied natural gas (LNG).

On October 26, at the Meyer shipyard in Turku (Finland), the second part of the traditional "coin ceremony" took place, attended by the ship's captain Pietro Sinisi, and by the shipyard and the company’s management. Following the maritime tradition, some commemorative coins were placed on the ship, as a good luck charm for crew members, guests and future itineraries.

In the two weeks prior to the coin ceremony, the Costa Toscana had left the Turku shipyard to carry out sea trials, during which the ship successfully passed a series of tests to verify the proper functioning of systems, equipment, and LNG engines. This is another key step towards delivery, scheduled for December 2021.

Costa Toscana, like her sister ship Costa Smeralda, is powered by liquefied natural gas, the marine industry’s most advanced fuel technology currently available for reducing emissions, both at sea and during port calls. The Costa Group - which includes Costa Cruises and AIDA Cruises – has been the first company in the cruise industry to believe in this technology and can currently count on four LNG-powered ships, two of which are already in service, AIDAnova and Costa Smeralda, and two soon to be delivered, Costa Toscana and AIDACosma.

Mario Zanetti, President of Costa Cruises, commented: "These additional key steps in the completion of the Costa Toscana confirm our commitment to evolution towards an increasingly sustainable cruise model. At the same time Costa Toscana, thanks to her excellent and innovative services, will be able to attract new cruise guests, helping us to consolidate our presence in the Mediterranean and our gradual restart plan".

Costa Toscana's first cruise will homeport from Savona, Italy, on March 5, 2022, with a week-long itinerary that includes Marseille, Barcelona, Valencia, Palermo and Civitavecchia/Rome. Following her debut, the new flagship will remain deployed in the Western Mediterranean throughout the year. During the summer season, Costa Smeralda will call at Savona, Civitavecchia/Rome, Naples, Ibiza, Valencia and Marseille, while during the fall season Palma de Mallorca will replace Ibiza.

The new flagship is a tribute to Tuscany, a result of an extraordinary creative project curated by Adam D. Tihany, designed to enhance and bring to life, in a single location, the excellences of the wonderful Italian region, which generated the names for the ship, her decks and main public areas. The furnishings, lighting, fabrics, and accessories will all be Made in Italy and designed specifically for the Costa Toscana by 15 partners, who are highly representative of Italian excellence. The offer on board will be perfectly integrated in this extraordinary context: from the Solemio Spa to other areas dedicated to entertainment, from thematic coffee bars created in collaboration with major Italian brands, to the 16 restaurants and areas dedicated to the "food experience". In this comfortable and elegant context, the over 2,600 cabins also perfectly reflect the Italian style and taste. The category of cabins with "terrace on the sea" will offer a splendid dependance where to have breakfast, drink an aperitif or simply enjoy the view.

MSC Cruises invites artists to design hull of MSC Euribia

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Written by Teijo Niemelä Teijo Niemelä

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Published: 30 October 2021 30 October 2021

Announced on October 25 on International Artist Day, MSC Cruises is giving artists and designers around the world the opportunity to transform the hull of MSC Euribia into a giant, floating canvas, with the goal to communicate the importance of respect for the environment. The design contest, which opens today, is a first for MSC Cruises and shines a light on the Company’s ongoing commitment to the environment and to achieve net zero greenhouse gas emissions (GHG) by 2050.

MSC Euribia – which is the most environmentally advanced ship in MSC Cruises’ fleet to-date – is named after the ancient goddess Eurybia, who harnessed the winds, weather and constellations to master the seas, as the ship’s vision is to master the deployment of state-of-the-art sustainable technologies to protect and preserve the precious marine ecosystem.

International Artist Day is an opportunity to celebrate the unique way in which artists view the world and their contribution to cultural enrichment. MSC Cruises is calling on artists to create a unique artwork inspired by the sea and its important marine ecosystem that will be featured as a permanent design across the ship’s hull as she sails the world’s oceans.

Pierfrancesco Vago, Executive Chairman of the Cruise Division of MSC Group, said, “We are a family company with over 300 years of maritime heritage; all we do and ever did is shipping. The sea is our livelihood and our passion. For this and more, since our early days, we focused on looking after it for the next generations. Today, this means that, at MSC Cruises, we are equipping our ships with the latest and most advanced environmental technologies and solutions. We also fund research and invest directly to support the accelerated development of next generation solutions and we embrace innovative technologies to minimize our impact and protect and preserve our precious marine ecosystems.”

The entries will be judged by a panel of international judges including sand artist Jben, known for his large-scale ephemeral sand frescoes that wash away with the tide; architect Martin Francis; and Pierfrancesco Vago, Executive Chairman of the Cruise Division of MSC Group. Jben has traveled the world sculpting Beach Art in the United States, France, Morocco, Holland and Portugal, and raising awareness of sea-related environmental issues and encouraging marine protection and preservation.

“The winning design will be yet another sign of our ongoing commitment to protecting the oceans and achieving net-zero operations, an ambitious goal that we have set for ourselves to reach by 2050 or sooner. Through this contest, MSC Euribia will be proudly showcasing this important message of our commitment on her hull for all to see as she sails the world,” Mr. Vago added.

Only one winner will be lucky enough to have their artwork showcased on the ship’s hull as a sailing outdoor gallery for the world to see. Five additional shortlist finalists will also have their designs displayed in an exhibition on board MSC Euribia, where guests will be exposed to their art and its important message for years to come.

MSC Cruises also shared a video today of artist Jben calling on other artists to join him. On October 19, he created an immense 148x148-foot fresco on the French beach the Côte Sauvage, telling designers ‘MSC wants you’ and calling on them to join the competition.

MSC Euribia will come into service in 2023 and become the second LNG-powered ship in MSC Cruises’ fleet, marking another step forward in substantially reducing greenhouse gas emissions. LNG plays a key role in the journey towards climate change mitigation and MSC Euribia’s engines have the potential to reduce greenhouse gas emissions by up to 21% compared to standard fuels while also virtually eliminating other air emissions.

As bio and synthetic fuels become available, MSC Euribia’s emissions will be further reduced. LNG is also key to the development of sustainable fuels and fuel cell solutions for shipping as these emerging technologies cannot be operated with traditional fuels. MSC Cruises is actively involved in several projects to develop and make these technologies viable in partnership with regulators, academia, shipyards and the industry. This includes a project to study the use of hydrogen fuel in cruise ships in partnership with Fincantieri and SNAM, as well as a pilot project for the development of solid oxide fuel cell technology for cruise ships.

MSC Euribia will also utilize a next-generation advanced wastewater treatment system as well as an underwater radiated noise management system to minimize the effects of vibrations on marine life. Multiple energy efficiency features help reduce and optimize engine use.

MSC Cruises is committed to powering at least three upcoming ships with LNG, representing a total investment exceeding USD $3.5 billion.