NCL takes delivery of Norwegian Prima

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Written by Kari Reinikainen Kari Reinikainen

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Published: 29 July 2022 29 July 2022

Norwegian Cruise Line (NCL) that NCL is part of Norwegian Cruise Line Holdings Ltd. in Miami, has taken delivery of the 142,500gross ton Norwegian Prima at Fincantieri’s shipyard at Marghera near Venice.

It is the first in a series of six Prima class shops that will form the backbone of the future NCL fleet. Deliveries of the class that has accommodation for 3,215 guests are scheduled through 2027.

“The Prima Class is based on a prototype project developed by Fincantieri, which enhances the consolidated features of NCL’s signature offering of freedom and flexibility, qualified by an innovative configuration for an elevated passenger experience,” the shipbuilder said in a statement.

“In addition, focus was set on energy efficiency, with the twofold aim of optimising consumption at sea and reducing environmental impact, compliant with all the most recent regulations on this matter,” Fincantieri said.

From left: Fincantieri's Luigi Matarazzo and NCL's Harry Sommer

Royal Caribbean Group expects third quarter profit, second half loss

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Written by Kari Reinikainen Kari Reinikainen

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Published: 28 July 2022 28 July 2022

Royal Caribbean Group, the world’s second largest cruise shipping group, said it expected a net loss in the second half of the year, but the third quarter should produce a small profit.

The second half next loss expectation is based on increases in fuel rates, interest rates and foreign exchange rates. “Based on current currency exchange rates, fuel rates and interest rates, the Group expects Adjusted Earnings Per Share for the third quarter of $0.05 - $0.25,” the company said in a statement. It did not quantify the expected second half loss.

The company expects to operate 11.6 million available passenger capacity days (APCDs) in the third quarter and generate approximately $2.9 billion - $3.0 billion in total revenue, based on current currency exchange rates.

The company does not forecast fuel rates, and fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel rates, the company expects approximately $319 million of fuel expense in the third quarter 2022, at an average pricing of $794 per metric ton, net of hedging.

Based on current currency exchange rates and fuel rates, the company expects Adjusted EBITDA of $700 million - $750 million in the third quarter.

Depreciation and amortisation expenses for the third quarter of 2022 are expected to be approximately $360 million.

Net interest expense for the third quarter of 2022, based on current interest rates, is expected to be in the range of $310 million - $320 million. Approximately 70% of the company's debt is tied to fixed interest rates.

 Booking volumes received in the second quarter for 2022 sailings averaged 30% above 2019 booking volumes for 2019 sailings in the corresponding period in the second quarter with even greater strength in July.

Guests are still booking their cruises closer-in compared to prior years, contributing to the better-than-expected load factors in the second quarter. In addition, cancellation activity has now returned to pre-covid levels.

As expected, load factors for sailings in the second half of 2022 remain below historical levels and are expected to finish at approximately 95% in the third quarter and reach triple digits by the end of the year. Second half 2022 sailings are booked at higher prices than 2019, both including and excluding future cruise credits (FCCs).

 While demand for the critical Europe season has been strong over the past three months, the combination of Covid-19 and the Russia-Ukraine war, has set back load factor recovery, particularly for the third quarter of 2022, where European itineraries account for about a third of overall capacity.

Because European itineraries generate higher than average pricing, the lower load factors are expected to negatively impact the comparison of fleetwide revenue per passenger cruise day in the third quarter when compared to the third quarter of 2019.

Booking volumes for 2023 have shown consistent improvement week over week and have been accelerating over the last several weeks. Pre-cruise onboard purchases continue to exceed prior years at higher prices, indicating quality and healthy future demand. As a result, all quarters are currently booked within historical ranges at record pricing.

Royal Caribbean Group cuts second quarter losses as load factor hit 82%

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Written by Kari Reinikainen Kari Reinikainen

Category: More News More News

Published: 28 July 2022 28 July 2022

Royal Caribbean Group, the world’s second largest cruise shipping company, has significantly reduced its losses in the second quarter as load factor hit 82% in the review period, the company said in a statement.

Second quarter operating loss narrowed to $218.6 million from a loss of $1.02 billion in the same period last year, while net loss narrowed to $521.6 million from $1.35 billion.

“Second quarter results exceeded the company's expectations driven by better revenue and cost performance. Second quarter load factors were 82%. Load factors increased to almost 90% in June, with Caribbean itineraries averaging over 100%,” the company said.

Total revenues per passenger cruise day were at record levels and up 4% as reported and 5% in constant currency versus the second quarter of 2019.

Gross Cruise Costs per available passenger capacity day (APCD) improved 2.4% as reported and 1.9% in constant currency, compared to the first quarter 2022. Net Cruise Costs (NCC), excluding fuel, per APCD improved 16.5% as reported and 16.2% in constant currency, compared to the first quarter of 2022.

Gross Cruise Costs per APCD and NCC per APCD for the second quarter included $7.75 per APCD related to enhanced health protocols and one-time costs to return ships and crew back to operations.

Customer deposits hit record high of $2 billion

As of June 30, 2022, the Group's customer deposit balance was $4.2 billion, a record high for the company. “This represents an increase of about $600 million over the previous quarter despite the significant quarter-over-quarter increase in revenue recognition,” the company said.

In the second quarter, approximately 90% of total bookings were new versus future cruise credit (FCC) redemptions. Now that the full fleet has returned to service and load factors are nearly 90%, the company expects customer deposits to return to typical seasonality. 

Approximately 20% of the customer deposit balance as of the end of the second quarter is related to FCCs and about 60% of the FCC balance accumulated since the start of the pandemic has been redeemed. Of the redeemed FCCs, about half have already sailed resulting in revenue being recognized. For new bookings, the Group has returned to typical booking and cancellation policies, which were relaxed during the pandemic.

Liabilities of the group totaled at $30.55 billion at the end of the quarter, an increase from $27.17 billion year-on.

Explora Journeys unveils design of Homes at Sea suites

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Written by Kari Reinikainen Kari Reinikainen

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Published: 27 July 2022 27 July 2022

Explora Journeys, the luxury brand of MSC Group, has unveiled the design of their “Homes at Sea Suites” on its first ship, Explora I, ahead of its maiden journey in May 2023.

“The design reflects the brand’s philosophy of creating an Ocean State of Mind, thanks to light, colour, space, privacy, and connection with the sea.

“The innovative ship will seamlessly blend elegant Swiss precision with modern European craftsmanship and vibrant design, to create luxurious, serene, and spacious ‘Homes at Sea’ ranging from 35 sqm (377 sq ft) in the Ocean Terrace category up to 280 sqm (3014 sq ft) for the Owners Residence,” the company said in a statement.

Each suite has been created with simplicity and comfort as the focus, and presents unrivalled space and privacy to offer a real ‘Home at Sea’. The lead in category Ocean Terrace Suites and the 39 sqm (420 sq ft) Ocean Grand Terrace Suites are some of the largest in the industry, and feature their own private terrace, between 7-11 sqm (75-118 sq ft), creating an extension to the living space complete with daybeds and an alfresco dining area, bringing guests closer to the ocean.

Elevating the suites to a luxurious home, each ‘Home at Sea’ comprises a walk-in wardrobe with a seated vanity area and features a Dyson Supersonic hairdryer, heated floors in the bathrooms, personal binoculars, wireless bed-side charging, a personal mini-bar replenished according to the guests’ preferences, espresso machine with bio-degradable pods, a kettle and teapot, and a complimentary personal refillable water bottle for each guest. 24-hour guest services also ensure every desire or request is provided.

Michael Ungerer, Chief Executive Officer of Explora Journeys, said:  “The Homes at Sea have been a long-held vision of the Aponte Vago family. It is a truly exciting and profound moment for us to be able to welcome future guests to the carefully curated suites, penthouses and residences.”

Each of the 461 ocean-front suites, penthouses and residences comes with its own spacious private terrace, boast floor-to-ceiling windows to maximise natural light, and a neutral colour palette and a suite layout designed to indulge in the marine environment.

The design of each suite has been developed in collaboration with De Jorio Luxury & Yachts projects, and London-based architectural and interior design studio NenMar, to deliver considered and innovative interior design and meaningful decoration solutions.

Fusing a plethora of Italian interior details, each suite depicts true elegance and sophistication. Suites will be furnished with some of the best of Italian and European design furniture, such as Molteni&C, part of the Molteni Group, the leading independent industrial group in the high-end furniture sector with 100% Italian production.

The identity of Molteni&C lives in all the Explora suites through high-quality products and iconic pieces by Gio Ponti, all marked by the core values of Molteni: tradition, quality, durability and reliability, supported by research and innovation.

The lighting throughout the suites has been styled to create an intimate lighting concept. Linear lights integrated with the suite's furnishings offer an equally functional and design-led element, mirroring the linear flow from the entrance to the window of the suites, to give a clear perspective of the well-equilibrated spaces.

Conscious luxury is reflected in the choice of materials and Explora Journeys’ commitment to sustainability is demonstrated in their dedication to responsible sourcing of materials, and eco-friendly details such as refillable bathroom amenities and no single-use plastic on board, the company said.