Top Headlines

Weak Spanish economy, Costa Concordia impact behind Pullmantur impairment charge

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2013 04 February 2013

Royal Caribbean Cruises Ltd (RCCL), the world's second largest cruise shipping group, says it conducts an analysis of the carrying value of its assets on a regular basis and in the past has pointed out the risks related to Pullmantur and the Spanish economy.

While the 2013 WAVE season is broadly off to a promising start, booking volumes and pricing are down substantially in Spain due to the impact of additional austerity measures there, the lingering impact of the Costa Concordia tragedy and other factors, the company said in a statement.

Accordingly, the company has recorded a total impairment charge of $413.9 million.

Of this amount, approximately $319.2 million relates to goodwill and the balance relates to a valuation allowance for deferred tax assets, a reduction in the value of the trademarks and an impairment charge related to three aircraft that Pullmantur owns and operates.

Regarding the impairment charge, Richard D. Fain, chairman and chief executive officer commented, "While it is appropriate that we record this impairment charge now, we remain confident in and committed to the Pullmantur brand. Despite terribly challenging multi-year economic headwinds, Pullmantur's management team has done an excellent job in maintaining the brand's market-leading position while simultaneously diversifying guest sourcing into new markets

RCCL: final quarter profit beats forecast but books $413.9 million Pullmantur charge

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2013 04 February 2013

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, has reported full year 2012 results and provided an initial outlook for 2013.

For the fourth quarter 2012, the group reported net income before impairment charges of $21.1 million, or $0.10 per share, versus income of $36.6 million, or $0.17 per share, in the fourth quarter of 2011. The fersh figure was above the average of $0.06 per share forecast by analysts in New York and Oslo. During the quarter the company recorded non-cash impairment charges totaling $413.9 million related to the company's Pullmantur brand.

Full year 2012 net income before impairment charges was $432.2 million, or $1.97 per share, versus income of $607.4 million, or $2.77 per share for full year 2011. Net Yields increased 3.0% on a Constant-Currency basis; 1.5% As-reported. NCC excluding fuel increased 4.2% on a Constant-Currency basis; 2.7% As-Reported.

Approximately 240 basis points of the Net Yield improvement and approximately 350 basis points of the NCC excluding fuel increases for the year relate to previously announced deployment initiatives and changes to the company's international distribution system. The company does not anticipate meaningful influences on yields or NCC measurements from changes in deployment or international distribution in 2013.

Norwegian to offer $300 million five year notes at 99.451%

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2013 04 February 2013

Norwegian Cruise Line, a subsidiary of Norwegian Cruise Line Holdings Ltd that was recently listed on Nasdaq in New York, says it has entered into an agreement to sell $300 million aggregate principal amount of 5.00% senior unsecured notes due February 2018 in connection with a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act").

The notes are to be issued at an issue price of 99.451%.

“The Company intends to use the net proceeds from the Offering, together with borrowings under its senior secured revolving credit facilities, to redeem its $450 million 11.75% senior secured notes due 2016,” Norwegian said in a statement.

In Memoriam: Klas Brogren

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 01 February 2013 01 February 2013

Klas Brogren, 57, founder and owner of the Swedish maritime publishing and consultancy company Shippax, has passed away quietly in his home in Halmstad, Sweden on 30 January after a long illness.

Klas was the publisher of Shippax CFI, the monthly magazine previously known as Cruise & Ferry Info with focus on the roro, ferry and cruise industries, plus three annual publications on these sectors of shipping.

Klas worked at Shippax for more than four decades.

CLIA expands resources in Europe, appoints executives in global association structure

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 30 January 2013 30 January 2013

Cruise Lines International Association (CLIA) today announced an expansion of resources in the European market and several personnel appointments within the association’s new global structure. This follows CLIA’s Dec. 17 announcement that nine cruise industry associations around the world had joined together under a common, unified structure to represent the global cruise industry with one voice.

Joining CLIA UK and Ireland, the Dutch Cruise Council (DCC) has agreed to be a part of CLIA and is the 10th cruise association to join CLIA’s newly established global structure. The DCC was formed in 2009 and has 16 member cruise lines. It will operate under the name "CLIA Netherlands." In France, an agreement was reached with AFCC, the French cruise association, to become CLIA France in late spring. CLIA is also currently developing a German cruise council based in Hamburg which will be named CLIA Germany. The German cruise market has experienced substantial growth in recent years with the number of passengers growing from 1.2 million in 2010 to 1.4 million in 2011, representing a significant year-over-year increase of nearly 14 percent. Later this year, CLIA plans to establish cruise councils in Italy and Spain to ensure a strong local presence for the cruise industry in those important markets.

"Europe is an important market for the cruise industry because of its diverse and breathtakingly beautiful destinations that are rich in cultural heritage and offer something for every traveler," said Christine Duffy, president and CEO of CLIA. "As we focus on ensuring the cruise industry speaks with one voice we are delighted to welcome the Dutch Cruise Council and the AFCC as part of CLIA, and we look forward to broadening the industry’s representation in key European markets as CLIA expands its presence in Germany, Italy and Spain."

In addition to CLIA’s expansion in Europe, CLIA also announced five appointments within the newly formed global association.

"This is an exciting year for CLIA as we implement the association’s new global structure," Duffy said. "Putting the right talent in place is critical as we focus on delivering enhanced value to the global cruise industry while representing it internationally with one voice before numerous stakeholders. The appointments we are announcing today are strong additions to the CLIA team, and we look forward to their contributions as we build on the value we deliver to our members and partners. I also wish to express the industry’s deep gratitude to Tim Marking, Secretary General of CLIA Europe, who is retiring after serving in that role with distinction since CLIA Europe was established in 2004 as the European Cruise Council. We will greatly miss Tim’s leadership and exemplary representation of the cruise industry, and we wish him all the best in retirement."

The new appointments include:

Robert Ashdown has been appointed as the new Secretary General for CLIA Europe, formerly the European Cruise Council, where he was Director of Technical, Environmental and Operational issues since 2010. Prior to CLIA Europe, Mr. Ashdown held a variety of roles with increasing responsibility at the UK Chamber of Shipping. Under the new CLIA global structure, Mr. Ashdown will be responsible for all aspects of cruise industry affairs in Europe, working closely with CLIA’s global Technical and Regulatory function, as well as promotion of cruising. He succeeds Tim Marking who, as mentioned previously, is retiring after serving as Secretary General for nearly a decade. Mr. Ashdown will be based in Brussels and his appointment is effective March 1, 2013.

Barbara Muckermann was named Global Communications Advisor to CLIA and will support the global association team with strategic oversight of international communication activities, including media relations and digital strategies. She also will assist with the implementation of CLIA’s globalization efforts involving various cruise association offices outside of North America. Ms. Muckermann was previously Chief Marketing Officer for MSC Cruises.

Tomas Matesanz is appointed Communications Director for CLIA Europe, based in Brussels. Mr. Matesanz is responsible for the communications needs for CLIA Europe, including media relations, management of local public relations agencies in various countries, and implementation of CLIA’s global communications priorities in the European markets. Prior to CLIA, Mr. Matesanz was Senior Director at a leading communications consultancy in Spain and Latin America, Llorente & Cuenca, based in Madrid.

Didier Scaillet will serve as Vice President, Business Development, responsible for CLIA’s Associate Member and Executive Partner programs, focusing on value creation for CLIA and for the associate members, globally and regionally. Mr. Scaillet will manage a cohesive and comprehensive global research agenda, including economic impact studies, market profiling and key industry capacity development data. Mr. Scaillet has extensive experience in business and partnership development having served for many years as Chief Development Officer for Meeting Professionals International.

Rob Griffiths, formerly a consultant to CLIA, has been named Director of Technical and Regulatory Affairs, Design and Engineering within CLIA’s global Technical and Regulatory function, led by Bud Darr, Senior Vice President of Technical and Regulatory Affairs. CLIA’s Technical and Regulatory Affairs team represents the global cruise industry before the International Maritime Organization and other maritime regulatory and oversight authorities. He is responsible for matters involving shipboard operations, safety, environmental protection, and other operational matters involving the cruise industry. Mr. Griffiths was previously with the U.S. Coast Guard and is based in CLIA’s Washington, D.C., office.