More News

Royal Caribbean Group reports second quarter profit

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 27 July 2023 27 July 2023

Royal Caribbean Group today reported second quarter Earnings per Share of $1.70 and Adjusted Earnings per Share of $1.82. These results were significantly better than the company's guidance due to stronger pricing on closer-in demand and further strength in onboard revenue. As a result of the accelerating demand environment for its vacation experiences, the company is increasing its 2023 Adjusted Earnings per Share guidance by 33% to $6.00 – $6.20.

"Our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations," said Jason Liberty, president and CEO, Royal Caribbean Group. "Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year. We also expect to achieve record Adjusted EBITDA per APCD and Return on Invested Capital this year and are well on our way toward achieving our Trifecta goals."

Key highlights

Strong ticket pricing from both North America and Europe itineraries, combined with strength in onboard revenue, led to better-than-expected revenues in the second quarter and the significant increase in the company's full year outlook for revenue and earnings.

Second quarter 2023

Gross Margin Yields increased 13.1% As-Reported, and Net Yields increased 12.9% in Constant-Currency (12.6% As-Reported), both compared to the second quarter of 2019.

Gross Cruise Costs per Available Passenger Cruise Day ("APCD") increased 10.9% As-Reported, and Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased 9.0% in Constant-Currency (8.6% As-Reported), both compared to the second quarter of 2019. Favorable timing of operating expenses was offset by the increase in stock compensation expense due to the rise in share price and expected financial performance.

Total revenues were a record $3.5 billion, Net Income was $458.8 million or $1.70 per share, Adjusted Net Income was $491.7 million or $1.82 per share, Adjusted EBITDA was a record $1.2 billion and Operating Cash Flow was $1.4 billion.

Full year 2023 outlook

Net Yields are expected to increase 11.5% to 12.0% in Constant-Currency and As-Reported, compared to 2019.
NCC, excluding Fuel, per APCD is expected to be up approximately 7.0% in Constant-Currency (6.7% As-Reported), compared to 2019. The increase in costs, relative to previous guidance, is driven by an increase in stock compensation expense due to the rise in share price and expected financial performance.

Adjusted Earnings per Share for the full year are expected to be in the range of $6.00 to $6.20 per share.

Third quarter 2023 outlook

Net Yields are expected to increase 13.5% to 14.0% in Constant-Currency (14.0% to 14.5% As-Reported), compared to the third quarter of 2019.

NCC, excluding Fuel, per APCD is expected to increase approximately 11.2% in Constant-Currency and As-Reported, compared to third quarter 2019. Approximately half of the cost increase compared to 2019 is related to structural costs, timing shift of operating expenses from the second quarter, and increase in stock compensation expense.

Adjusted Earnings per Share for the third quarter are expected to be in the range of $3.38 to $3.48 per share.

Second quarter 2023

The company reported Net Income for the second quarter of $458.8 million or $1.70 per share compared to Net Loss of $(0.5) billion or $(2.05) per share for the same period in the prior year. The company also reported Adjusted Net Income of $491.7 million or $1.82 per share for the second quarter compared to Adjusted Net Loss of $(0.5) billion or $(2.08) per share for the same period in the prior year.

Second quarter revenue significantly exceeded the company's guidance due to higher pricing and higher shipboard revenue across the company's key itineraries, including the Caribbean and Europe. Load factor for the second quarter was 105%.

Gross Cruise Costs per APCD increased 10.9% As-Reported, compared to 2019. NCC, excluding Fuel, per APCD increased 8.6% As-Reported and 9.0% in Constant-Currency, compared to 2019. Favorable timing of operating expenses drove NCC lower, however it was offset entirely by an increase in stock compensation expense related costs due to the significant rise in share price and expected financial performance.

Update on bookings

Booking volumes in the second quarter remained significantly higher than the corresponding period in 2019 and at record pricing levels. Demand for 2023 sailings has significantly exceeded expectations and bookings for 2024 sailings are up significantly versus all prior years at record prices. Demand from the North American consumer has remained incredibly strong throughout the year, and booking volumes from European consumers who are booking European cruises this summer have accelerated.

The further increase in yield expectations for the year is the result of higher pricing and onboard revenue expectations for key itineraries, particularly in North America and Europe. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2019 levels driven by greater participation at higher prices.

As of June 30, 2023, the Group's customer deposit balance was at a record-high $5.7 billion.

Fuel expense

Bunker pricing net of hedging for the second quarter was $682 per metric ton and consumption was 405,000 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 $275 million of fuel expense in its third quarter guidance at a forecasted consumption of 408,000 metric tons, which is 55% hedged via swaps. Forecasted consumption is 54%, 60% and 40% hedged via swaps for the remainder of 2023, 2024 and 2025, respectively. The annual average cost per metric ton of the hedge portfolio is approximately $573, $509, and $496 for 2023, 2024, and 2025, respectively.

The Ritz-Carlton Yacht Collection announces new promotions

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 25 July 2023 25 July 2023

The Ritz-Carlton Yacht Collection has announced key promotions and expansion of its sales team as part of its continued growth plans. These new promotions and appointments underscore the company’s continuous commitment to providing exceptional service, delivering extraordinary experiences, and expanding its global reach in the luxury travel industry.

Kristian C. Anderson has been promoted to Senior Vice President, Global Sales. Since joining the company in 2021, Kristian has consistently demonstrated his expertise and exemplary leadership, driving the growth of the company’s sales team. In his expanded role, Kristian will oversee all facets of the company’s sales operations, including global reservations, trade sales, meetings and incentives sales, air and hotel programs, and special services. His effective sales coaching and managerial abilities will play a vital role in further enhancing the performance of the sales department.

With over 30 years in the travel industry, Kristian brings a wealth of experience in leading global sales teams within the luxury hospitality sector. Prior to joining The Ritz-Carlton Yacht Collection, he served as the Executive Vice President of Global Sales for luxury river cruise operator Uniworld River Cruises and held leadership positions at Silversea Cruises, Qatar Airways, and Aeromexico Airlines. During his time at Uniworld, Kristian served as the chair of the Cruise Lines International Association (CLIA) Trade Relations Committee.

The Ritz-Carlton Yacht Collection also welcomes two additional team members to its expanding trade sales team, further strengthening relationships with travel partners across the globe and providing resources to help grow their businesses: based in Barcelona, Joan Brullet Gubern, Director, Trade Industry Sales – EMEA and based in Los Angeles, Stephanie Seghers-Narvaez, Manager, Strategic Accounts – Western USA & Canada. With these new appointments, the company furthers its dedication to fostering lasting partnerships.

Carolina Acero has been promoted to Vice President, Finance. Recognized for her outstanding managerial and strategic skills, Carolina has played a crucial role in building a strong and high-performing finance team over her five-year tenure with the company. In her new role, Carolina will continue to guide the organization by fostering a robust financial mindset and serving as a strategic business partner for various departments. The accounting and tax teams, along with financial planning and analysis, insurance, and treasury teams, will report to her, facilitating streamlined communication and comprehensive financial guidance across the organization. Carolina holds an MBA from Harvard Business School and has held previous roles at Royal Caribbean Group and various companies focused on the Latin American market.

Tobias King, the company’s leader in new build projects, has been promoted to Vice President, Newbuild. His dedication and expertise have been pivotal in the company's growth, particularly in building and leading the newbuild team at Chantiers de l’Atlantique for the company’s upcoming superyachts Ilma and Luminara, slated to sail in 2024 and 2025, respectively. Tobias' remarkable ability to develop positive relationships and conduct successful negotiations has solidified the foundation of the newbuild department, positioning the company for continued success in delivering extraordinary experiences to its guests. With a background in naval architecture and marine engineering, Tobias managed several projects for Celebrity Cruises and held engineering and consultancy positions with DNV prior to joining The Ritz-Carlton Yacht Collection.

“Kristian has consistently demonstrated his ability to drive revenue performance and provide exceptional leadership. We congratulate him on this well-deserved promotion and are confident that his expanded role will contribute to our continued success,” said Jim Murren, Executive Chairman and CEO of The Ritz- Carlton Yacht Collection. “I would also like to extend my congratulations to Carolina and Tobias on their elevated roles. Their expertise and dedication will be crucial to drive the company forward as we embark on an exciting phase of growth and expansion.”

“Kristian, Carolina, and Tobias exemplify exceptional leadership and dedication,” said Ernesto Fara, President and CFO of The Ritz-Carlton Yacht Collection. “Their invaluable contributions to the company have been instrumental in driving our growth and success, and they will undoubtedly continue to lead the way with thoughtfulness and strategic vision.”

Hans Lagerweij returns as CEO of Albatros Expeditions

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 19 July 2023 19 July 2023

Albatros Expeditions has announced the return of Hans Lagerweij as Chief Executive Officer, effective July 1, 2023. After exploring other career opportunities for the past 1.5 years, Lagerweij brings his extensive expertise and passion back to Albatros Expeditions, furthering the company's growth and innovation.

Albatros Expeditions underwent a remarkable transformation in recent years, becoming a trailblazer in the industry with innovative itineraries, an expert onboard team, the most modern fleet, and the lowest carbon emissions per guest. With a legacy of delivering unforgettable expeditions to remote corners of the world since 1986, Albatros Expeditions has evolved beyond its expertise in Greenland to encompass a wide range of voyages across the Arctic, Europe, South America, and Antarctica.

Lagerweij emphasized the company's expansion, stating, "We are no longer solely a Greenland expert. Our itineraries now span diverse destinations, offering unparalleled experiences in some of the most breathtaking regions on Earth. Moreover, we have transformed from primarily serving Scandinavia and Asia to embracing the United States as one of our biggest markets. This strategic shift has propelled Albatros Expeditions into being a truly global company."

As Lagerweij takes the helm once again, he expressed his enthusiasm for working with the exceptional team at Albatros Expeditions. "I am thrilled to collaborate with our outstanding professionals as we embark on the next phase of the company's journey. Together, we will continue to deliver exceptional expeditions and shape the future of sustainable travel to the most remote parts of the world."

Seatrade Cruise returns to Hong Kong in October 2023

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 18 July 2023 18 July 2023

Seatrade Cruise, the cruise industry’s leading platform for collaborating, innovating and connecting, announces the return of Seatrade Cruise Asia Pacific this October after a four-year hiatus. Serving as a platform for industry stakeholders across Asia, the conference will convene in Hong Kong. Additionally, the second installment of F&B@Sea will return to Miami, Florida alongside Seatrade Cruise Global in April 2024 with expanded offerings in a new venue, followed by Seatrade Cruise Med, to be hosted in Málaga, Spain in September 2024.

“We invite our international cruise community to join us as we make our highly anticipated comeback to Asia, bring fresh conference programming to the Mediterranean, and elevate the art of dining at sea to new heights with F&B@Sea in 2024,” says Chiara Giorgi, Global Brand and Event Director for Seatrade Cruise. “It’s especially exciting to be in Hong Kong this fall for Seatrade Cruise Asia Pacific during a pivotal period of growth and consumer demand for the industry in this region.”

Seatrade Cruise Asia Pacific will take place 24-26 October 2023. Venue: JW Marriott Hotel Hong Kong, China. The event is supported by Hong Kong Tourism Board.

First hybrid Superstar freight-passenger vessel delivered to Finnlines

Details: Written by Teijo Niemelä Teijo Niemelä; Category: More News More News; Published: 18 July 2023 18 July 2023

Finnsirius, the first of the series of two 65,692 gross ton freight-passenger (ro-pax) vessels, was delivered at the China Merchants Jinling Shipyard in Weihai, China, on 18 July 2023. The vessel will enter Finnlines’ Finland–Sweden (Naantali–Långnäs–Kapellskär) line. Traffic is scheduled to start in September 2023.

Freight and passenger shipping company Finnlines will make major investments in its route between Finland, Åland and Sweden during 2023, by introducing two new Superstar freight-passenger vessels.

The second vessel, Finncanopus, is expected to be delivered by the end of 2023. The two ships are the largest ro-pax vessels in the Finnlines fleet. The cargo capacity will increase by nearly 24 per cent to 5,200 lane metres and passenger capacity will double from today’s 554 to 1,100.

The new ro-pax vessels are part of Finnlines EUR 500-million Green Newbuilding Programme, which comprises both ro-pax and ro-ro vessels, all equipped with state-of-the-art sustainable solutions. Three new hybrid ro-ro vessels started operating in summer 2022.

“Finnlines’ Green Newbuilding Programme has been a massive investment which will benefit our freight customers and private passengers. These hybrid ro-pax vessels are not only the largest in the company fleet so far, but they transport cargo in a more sustainable manner. For example, the vessels have been equipped with enormous high-powered battery banks and onshore power supply in order to have zero emissions while at port. In addition, port operations will also be more efficient with auto-mooring. Smooth freight traffic in the Baltic Sea is the backbone of the region’s economies and national security of supply. For example, around 90 per cent of both Finnish and Swedish exports and imports are carried along shipping routes. Finnlines combines cargo with passenger traffic in this Naantali–Långnäs–Kapellskär route, and therefore our investment will strengthen services to our freight customers as well as to our passengers,” says Tom Pippingsköld, President and CEO of Finnlines.

“Finnlines is proud to introduce the first Superstar and Finnsirius will be Finnlines’ flagship in both size and technology. As the Superstar ro-pax vessels enter the traffic, we will further increase economies of scale to support new business development and opportunities for our freight customers. In addition, we will be able to offer upgraded services for passengers, including several themed restaurants, a wide range of cabin categories, meeting rooms, a large shop, lounges, to name a few,” says Antonio Raimo, Line Manager at Finnlines.

Archive photo of Finnsirius after float-out