Arnold Donald stepping down from Carnival Corporation & plc board

Details

Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 04 November 2022 04 November 2022

Carnival Corporation & plc, the world's largest cruise company, yesterday announced that Arnold Donald, its former President and CEO, is stepping down from the Boards of Directors of Carnival Corporation & plc after more than two decades of service.

Earlier this year, with the successful return of Carnival Corporation & plc's fleet into service, Donald announced his decision to leave the CEO role, turning it over to his colleague, Josh Weinstein, who was promoted from chief operations officer into the role of President and CEO, with Donald continuing to support the company in the short term during the transition as Vice-Chair.

"I am extremely proud of all we have accomplished together these past nine years, including the critical roles played by the Board, the senior leadership and every person in this amazing company who worked tirelessly with unmatched commitment, dedication and ingenuity to put our company, following the global pandemic's industry impact, in a position to continue the sustained success we were enjoying," said Donald. "It is an honor and a privilege to serve this great company, and after 21 years of serving on the Board, I feel the time is right for me to step aside, making room for others to enjoy the experience of contributing their leadership to our company while providing me increased flexibility to contribute outside of Carnival Corporation.”

Micky Arison, Chair of the Boards of Directors of the corporation, praised Donald, thanking him for his leadership and successful efforts over the years.

"In working closely with Arnold for more than 20 years, I have the utmost respect for him as a person and as a professional," said Arison. "He leads by example, listens intently, acts with integrity and puts a strong emphasis on supporting everyone around him. Arnold connects deeply with people and has an extraordinary ability to communicate, which has made him one of the most important and influential voices in our industry."

Randy Weisenburger, a fellow Board member and Lead Independent Director, echoed Arison's appreciation.

"Arnold came in with a fresh point of view and an infectious, positive attitude, and he was able to build on Carnival Corporation's long-term success," said Weisenburger. "We have such great respect for Arnold as a colleague and a proven leader with a strong track record of success -- and the company has seen impressive accomplishments during his time, expanding the cruise market and accelerating our growth trajectory as the largest cruise operator in the world."

Donald, 67, began serving on Carnival Corporation's Board of Directors in 2001 and Carnival plc’s Board of Directors in 2003, and he took on the role as President and CEO in July 2013.

Donald’s resignation is effective November 30, 2022.

Donald has agreed to continue to provide counsel and advice to the company and its Boards through a consulting agreement from December 1, 2022 through February 25, 2025. Under the terms of the consulting agreement, Donald will receive $1 million per year as compensation for all services provided to the companies along with health care coverage for him and his spouse. During the term of the consulting agreement and for six months thereafter, Donald is prohibited from providing any services to a direct competitor of the companies or any other cruise line.

Betsy O’Rourke appointed Chief Commercial Officer of Windstar Cruises; Dianna Rom promoted to Vice President of Sales

Details

Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 03 November 2022 03 November 2022

U.S. headquartered Windstar Cruises announced two new appointments to its leadership team today. Betsy O’Rourke joins Windstar’s team full time as its new Chief Commercial Officer and Dianna Rom is promoted to vice president of sales.

O’Rourke has been the Chief Commercial Officer for Xanterra Travel Collection, Windstar’s parent company, for 10 years and picked up oversight of the commercial functions of Windstar in 2020. O’Rourke’s move from Xanterra to Windstar puts her focus100-percent on Windstar and growing the brand in the marketplace. The small ship line’s marketing, sales and reservations teams report into O’Rourke who is responsible for the line’s overall marketing strategy.

Before Xanterra, O’Rourke was senior vice president of marketing at Royal Caribbean International. During her career she’s also led marketing teams at Wyndham Worldwide and the Travel Industry Association.

“We couldn’t be happier to have Betsy fully focused on Windstar moving forward,” said Windstar Cruises President Christopher Prelog. “She stepped up and ushered us through the challenges presented by the pandemic and her expertise has us poised for success in the luxury cruise market.”

Dianna Rom’s promotion to vice president of sales comes shortly after her promotion to Windstar’s senior director of sales. In her new position, Rom oversees the domestic and international sales team for the Windstar brand and is responsible for developing sales strategies and sales goals for the cruise line. All sales roles including groups and charters report into Rom.

Rom has been with Windstar for seven years in various sales roles. Prior to joining Windstar, Rom was the regional director of sales and marketing for Ohio State Park Lodges, formerly part of the Xanterra Travel Collection (Windstar’s parent company), where she led the sales and marketing team for eight hotels.

“Dianna’s sales acumen and knowledge of the travel and cruise landscape is so helpful to all of us at Windstar,” said Prelog. “She’s approachable and friendly. She has great relationships within the industry, and she’s an incredible asset for us as we work together to strengthen the brand and reach new to Windstar cruisers.”

O’Rourke will work remotely from Denver, CO and Rom works remotely in Ohio.

Royal Caribbean Group returns to profit on third quarter

Details

Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 03 November 2022 03 November 2022

Royal Caribbean Group today reported third quarter 2022 Earnings per Share of $0.13 and Adjusted Earnings per Share of $0.26. Third quarter results were better than expected and above guidance for the quarter mainly due to higher load factors from strong close-in demand, further improvement in onboard revenue and better cost performance. The Group also introduced the Trifecta Program, a new three-year initiative designed to drive superior performance.

“Last quarter's better than expected performance was a result of the continued robust demand environment and strong execution by our teams,” said Jason Liberty, president and chief executive officer of Royal Caribbean Group. "The combination of our leading global brands, the best and most innovative fleet in the industry, our nimble global sourcing platform and the very best people have delivered a successful return of our business to full operations and positions us well to deliver record yields and adjusted EBITDA in 2023," added Liberty. "The Trifecta Program provides us the financial coordinates we are looking to achieve over the next three years. As we have demonstrated in the past, we expect the formula of moderate yield growth, strong cost discipline, and moderate growth of our fleet will deliver a strong financial profile."

Business highlights

– Load factors in the third quarter were 96% overall, with Caribbean sailings reaching almost 105%.
– Total Revenue in the third quarter was $3.0 billion, Net Income was $33.0 million and Adjusted EBITDA was $742.3 million.
– Booking volumes in the third quarter accelerated versus the second quarter of 2022 and remained significantly higher than booking volumes received in the third quarter of 2019 for all future sailings.
– For 2023, all quarters are currently booked well within historical ranges at record pricing.
– During the third quarter, the company addressed $5.6 billion of its 2022 and 2023 debt maturities, resulting in $0.1 billion and $2.1 billion of maturities remaining in 2022 and 2023, respectively.
– Based on continued strength in consumer demand and typical load factor seasonality, the company expects fourth quarter load factors to be similar to third quarter overall, and to reach triple digits by year-end.
– For the fourth quarter of 2022, based on current currency exchange rates, fuel rates and interest rates, the company expects to generate Total Revenue of approximately $2.6 billion, Adjusted EBITDA of $350 - $400 million and Adjusted Loss per Share of ($1.30) – ($1.50).
– The Trifecta Program is designed to achieve three important financial goals by the end of 2025: increasing Adjusted EBITDA per APCD to triple digits, increasing Adjusted EPS to double digits, and achieving ROIC in the teens, while in parallel returning to an investment grade profile and reducing carbon intensity by double digits as compared to 2019.

Third quarter 2022

The company reported Net Income for the third quarter of $33.0 million or $0.13 per share compared to Net Loss of $(1.4) billion or $(5.59) per share for the same period in the prior year. The company also reported Adjusted Net Income of $65.8 million or $0.26 per share for the third quarter compared to Adjusted Net Loss of $(1.2) billion or $(4.91) per share for the same period in the prior year.

Third quarter load factors were 96% overall and almost 105% for Caribbean Sailings. As expected, total revenues per passenger cruise day were flat as reported and up 1% in constant currency versus the third quarter of 2019 despite the negative impact from the redemption of future cruise certificates (FCCs) and lower than average load factors on high priced Europe itineraries.

Gross Cruise Costs per APCD increased 1% as reported and in constant currency, compared to the second quarter 2022. Net Cruise Costs (NCC), excluding fuel, per APCD improved 11% as reported and 10% in constant currency, compared to the second quarter of 2022. Gross Cruise Costs per APCD and NCC, excluding fuel, per APCD for the third quarter included $3.37 per APCD related to health protocols and one-time lagging costs related to fleet ramp up.

NCC, excluding fuel, per APCD for the fourth quarter is expected to be higher by low to mid-single digits compared to the fourth quarter of 2019, all on a constant currency basis. The company still expects to have transitory costs in the fourth quarter, but are expected to normalize as the company is nearing full occupancies, full crew staffing levels, and adapting protocols. The improvement is partially offset by inflationary and supply chain challenges, mainly related to fuel and food costs, that are expected to continue to weigh on costs through the rest of this year and through the first half of 2023.

Finnish shipbuilder RMC to restructure its business

Details

Written by Kari Reinikainen Kari Reinikainen

Category: More News More News

Published: 02 November 2022 02 November 2022

Rauma Marine Constructions (RMC), the Finnish builder of ferries and naval vessels will restructure its business in the face of several challenges, the company said in a statement.

“The pandemic forced the shipyard to close down for weeks and prevented workers from coming in from abroad. The pandemic also disrupted global logistics by causing supply chain issues and delays. On the other hand, due to the war in Ukraine, inflation is soaring,” RMC said.

RMC has agreed on ship orders at a fixed price and construction work spans several years. “Our current agreements have been made before any of the events of the past few years. It is evident that the orders are now becoming unprofitable with all the delays and cost overruns,” it said.

The Finnish government has understood the strategic importance of the shipyard and is ready to ensure that shipbuilding expertise remains in Finland. The government has supported the continuation of the shipyard’s operations significantly by granting it an equity subordinated loan.

Focus on core competencies, naval work spun off to new unit

We have chosen to base our operations on a strong commitment to our network of subcontractors. The shipyard focuses on core competencies: project management, building the ships’ hull and assembly work. RMC works with a comprehensive network of subcontractors – our network partners.

Furthermore, major changes have been made in the shipyard’s management team. Mika Heiskanen, who has earned his qualifications in Turku shipyard’s management, has been appointed as the new CEO. The new Chairman of the Board Stig Gustavson is a notable figure in the Finnish industry sector with decades of experience at the helm of industrial companies.

“The financial performance of Rauma shipyard for this year will not be an easy read. The new management team is faced with a difficult task: they must turn the ship around and steer it in a direction where the shipyard can make a profit. Although RMC’s strategy has been proven correct, its execution – or “float-out” as we say in shipbuilding – is still widely incomplete”, Gustavson said.

RMC’s new management must begin their work from a challenging starting point. The Board of Directors has set up a six-month plan during which the company must show clear indicators of the new direction.

The board has created a framework for development. According to the outline, the construction of military and other government vessels will be assigned to RMC Defence, a subsidiary of RMC. A CEO will be appointed for RMC Defence. The yard has four 3,900 ton displacement corvettes on order from the finnish government, these will be the largest vessels ever in the fleet of the country.

The board will continue to emphasise the strengthening of procurement and developing partner networks. The board also requires that the company’s organisational structure and allocation of financial responsibilities are clarified and implemented.

“The transformation process has begun, and it will be monitored closely. A thorough evaluation will be conducted after six months, in late March 2023. The board is fully assured that CEO Heiskanen will commit to his task on a 24/7 basis”, Gustavson said.