Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, has reported net income of $399.0 million, or $1.82 per share, versus $350.2 million, or $1.61 per share, in 2010.
“Results include an $0.08 per share mark-to-market revaluation loss on the company’s WTI fuel option portfolio. Absent the revaluation charge, third quarter earnings per share totaled $1.90,” the company said in a statement.
Revenues improved to $2.3 billion in the third quarter of 2011 compared to $2.1 billion in the third quarter of 2010 as a result of capacity increases and yield improvements. Net Yields for the third quarter of 2011 increased 5.3% (2.6% on a Constant-Currency basis). "The company experienced particularly strong demand for its Caribbean and Alaska products during the third quarter with both markets experiencing increases in excess of 15% in ticket yields and Alaska yields reaching a historical high," RCCL said.
Costs in the third quarter of 2011 remained under tight control with NCC excluding fuel increasing only 0.7% on a Constant-Currency basis (2.5% on an as-reported basis).
Bunker pricing for the third quarter was consistent with earlier calculations at $608 per metric ton and consumption was 333,000 metric tons. During the quarter the company booked an $0.08 per share mark-to-market revaluation loss on its WTI fuel option portfolio.
“This loss partially offsets the revaluation gains the company recorded earlier in the year. As previously noted, these fuel options have been entered into for the purpose of protecting the company against spikes in oil prices. However, the options are not treated as hedges for accounting purposes and therefore can cause swings in quarterly earnings. Overall, they have been a successful strategy despite the swings they have caused, RCCL said.