Royal Caribbean Group reports deep loss for 2020
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- Written by Kari Reinikainen Kari Reinikainen
- Category: More News More News
- Published: 22 February 2021 22 February 2021
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.
Two Carnival brands extend Australia, New Zealand standstill
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- Written by Kari Reinikainen Kari Reinikainen
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- Published: 22 February 2021 22 February 2021
Two Carnival Corporation & plc group brands have extended their operational standstill in Australia and New Zealand.
P&O Cruises Australia, the group’s Australia and New Zealand focused contemporary market, said it has decided to extend the operational pause to departures on or before 18 June, 2021.
Previously, two of its ships, Pacific Adventure was planned to resume cruising on 30April and Pacific Encounter on 7 May.
The last named vessel has recently completed a transformation in Singapore to join the P&O Cruises Australia fleet. The 2001 built vessel sailed previously as Star Princess of sister brand Princess Cruises.
Information on the P&O Cruises Australia website shows that Pacific Explorer, its third ship, would commence operations on 30 July.
Meanwhile, Carnival Cruise Line has cancelled all Australian sailings departing from 15 March on board Carnival Splendor to 28 June, as well all Carnival Spirit sailings to12 September.
Royal Caribbean, lenders agree to amend three loan facilities
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- Written by Kari Reinikainen Kari Reinikainen
- Category: More News More News
- Published: 22 February 2021 22 February 2021
Royal Caribbean Cruises Ltd, (RCCL), the world’s second largest cruise shipping group, said it has amended three revolving loan facilities.
These are $1.55 billion unsecured revolving credit facility due 2022 with Nordea Bank ABP, a $1.925 billion unsecured revolving credit facility due 2024 with The Bank of Nova Scotia and a $1.0 billion unsecured term loan due 2022 with Bank of America.
“These amendments, among other things, extend the waiver of the quarterly-tested fixed charge coverage and net debt to capitalization covenants in each Credit Facility through and including the third quarter of 2022 or, if earlier, that date falling after January 1, 2022 on which we elect to comply with the modified covenants (the “Waiver Period”),” the company said in a statement.
“In addition, pursuant to the amendments, we have modified the manner in which such covenants are calculated (temporarily in certain cases and permanently in others) as well as the levels at which the net debt to capitalization covenant will be tested during the period commencing immediately following the end of the Waiver Period and continuing through the end of 2023,” RCCL said.
The amendments increase the monthly-tested minimum liquidity covenant to $500 million for the duration of the waiver period, subject to reduction to $350 million if RCCL raise at least $500 million of additional capital. “Pursuant to these amendments, the restrictions on paying cash dividends and effectuating share repurchases were extended through and including the third quarter of 2022,” the company said.
Photo: Silver Moon of Silversea Cruises. The company is part of RCCL
Crystal Cruises to require Covid-19 vaccination from passengers
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- Written by Kari Reinikainen Kari Reinikainen
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- Published: 19 February 2021 19 February 2021
Crystal Cruises, the Los Angeles based luxury cruise operator in the Genting Hong Kong group, said that guests must be fully inoculated with a COVID-19 vaccine - with both doses if recommended by the manufacturer - at least 14 days prior to boarding any Crystal ship.
The passengers would be asked to provide proof of vaccination before embarkation. “The new requirement is in addition to existing Crystal Clean+ 4.0 measures, including negative COVID-19 tests and health screening questionnaires,” the company said in a statement.
Saga Cruises in the UK has also made vaccination against the virs a prerequisite for boarding, while Swan Hellenic, the expedition cruise line, said all crew and staff must be vaccinated.
The company expects all crew to be vaccinated; however, as it stands today this may not be a viable option for all crew members given their age and/or the availability of vaccines in their home countries.
“As part of the company’s Crystal Clean+ 4.0 measures, crew members are required to be tested for COVID-19 prior to leaving their home location to join the ship and must receive a negative result; they also will take a COVID-19 test at embarkation; quarantine for seven days upon arrival; and take a test at the end of that seven-day period and must receive a negative result, before beginning their duties. When vaccines are widely available, they will be a requirement of employment at least 14 days prior to service,” the company said.
“We understand that the widespread availability of vaccines varies according to the distribution plan of each travelers’ home country and/or state. As of today, Crystal has voluntarily paused operations through May 2021 for our River fleet with cancellations into June for our Ocean ships, through August 1 for Crystal Esprit and through August for Crystal Endeavor. We are confident that our timeline for returning to cruising this summer will allow guests sufficient time to get fully vaccinated,’ Crystal Cruises said.
Photo: Lobby on Crystal Symphony
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