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RCCL exceeds second quarter guidance on strong performance of business

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 02 August 2018 02 August 2018

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping company, has reported second quarter earnings per share (EPS) higher than its April guidance on strong performance of its business, but foreign exchange rates and fuel prices caused concerns.

Adjusted EPS rose to $2.17 from $1.71 in the same period last year and exceeded its own guidance $0.39. 

“Such a high level of favorability is unusual and was driven by a noteworthy confluence of factors including: better than expected revenue from the global brands, better performance from the joint ventures and lower than expected expenses which were driven by timing,” RCCL said in a statement.

Revenues rose to $2.34 billion from $2.20 billion in the second quarter year on, while operating profit increased to $456.9 million from $419.7 million. Net profit rose to $466.3 million from $369.5 million.

In the first six months of the year, revenues increased to $4.37 billion from $4.20 billion and operating profit rose to $731.0 million from $699.2 million. Net profit rose to $684.9 million from $584.3 million.

"While we are frustrated by foreign exchange and fuel rates, we are tickled pink that our business continues to excel and overcome these headwinds," said Richard D. Fain, chairman and CEO, in the statement.  "It is a pleasure to prove, once again, how strong our brands are and to demonstrate continued upside to our yields while maintaining strong expense control."

Gross yields rose up 2.7% in constant currency (up 3.7% as-reported). Net yields were up 2.8% in Constant-Currency (up 3.8% as-reported).

Gross Cruise Costs per Available Passenger Capacity Day (APCD) increased 1.1% in constant currency (up 1.8% As-Reported). Net Cruise Costs (NCC) excluding Fuel per APCD were up 1.1% in constant-currency (up 1.8% as-reported).

The company said it 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 $184 million and $693 million of fuel expense in its third quarter and full year 2018 guidance, respectively.

Forecasted consumption is 50% hedged via swaps for the remainder of 2018 and 52%, 41%, 20% and 5% hedged for 2019, 2020, 2021 and 2022, respectively. For the same five-year period, the average cost per metric ton of the hedge portfolio is approximately $443, $364, $380, $426 and $632, respectively.

 

 

Genting Hong Kong predicts smaller first half loss

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 31 July 2018 31 July 2018

Genting Hong Kong, the parent company of Star Cruise, Dream Cruises and Crystal Cruises, said that it expects smaller first half loss than a year ago..

Based on the preliminary assessment of the latest unaudited financial information, excluding the share of results of Travellers, the Group is expected to record a consolidated net loss in the range of $150 million to $170 million for the six months ended 30 June 2018, the company said in a statement.

This compares with a consolidated net loss of $205.4 million, excluding the share of results of Travellers, for the six months ended 30 June 2017.

Such expected reduction in the consolidated net loss of the Group is mainly attributable to the improved performance of the cruise segment.

However, the improved performance of the cruise segment is partially offset by a lower cost capitalisation in the shipyards for the six months ended 30 June 2018 as the keel laying of the 20,000 gross ton Crystal Endeavor and the first 204,000 gross ton Global Class ships will be in August 2018 and September 2018 respectively, which will subsequently increase the rate of production and cost capitalisation.

 

Fincantieri to build two 175,000 gross ton LNG-powered ships for Princess Cruises

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 23 July 2018 23 July 2018

Fincantieri has signed a memorandum of agreement (MoA) with Princess Cruises, brand of Carnival Corporation & plc, the world’s largest cruise ship operator, for the construction of two next-generation 175,000-ton cruise ships which will be the largest ships built so far in Italy with deliveries scheduled in Monfalcone in late 2023 and in spring 2025.

The vessels will accommodate approximately 4,300 guests and will be based on a next-generation platform design, being the first Princess Cruises’ ships to be dual-fuel powered primarily by Liquefied Natural Gas (LNG), the marine industry’s most environmentally friendly advanced fuel technology and the world’s cleanest burning fossil fuel, which will significantly reduce air emissions and marine gasoil.

“This revolutionary platform for next-generation, LNG-powered cruise ships will introduce innovative design and leisure experiences driven by the future vacation and lifestyle trends of our guests – further evolving the already best-in-class Princess Cruises experience we deliver today. We look forward to collaborating with Fincantieri to bring our vision for this next- generation premium cruise ship into service” said Jan Swartz, President of Princess Cruises.

While commenting the announcement, Giuseppe Bono, CEO of Fincantieri, stated: “We are proud to further extend our long-established partnership with Princess Cruises, a brand we are indeed tied to since our comeback to the cruise ship industry in 1990. After so many years, we are getting ready to enter, together, into a new era of our industry, increasingly aimed at reducing environmental impact. We proudly do this with an all-time record project, both in terms of size and technological level”. Bono concluded: “We believe that there are no more significant milestones than these to reaffirm the market-leading positions we achieved. They allow us to keep a solid partnership between our country and the Carnival group - the largest foreign investor in Italy - and at the same time to maintain know-how and increase employment”.

Fincantieri has built 85 cruise ships since 1990 (62 from 2002), 65 of which for Carnival’s different brands, while other 49, including agreements, are currently being designed or built in the Group’s yards.

CLIA announces departure of President & CEO Cindy D'Auost

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 20 July 2018 20 July 2018

Cruise Lines International Association (CLIA) has announced that Cindy D’Aoust, president and CEO, will be stepping down at the end of the year to focus on family priorities.

D’Aoust will remain in her role until a successor is identified and will help oversee the transition of a new leader. CLIA’s Global Executive Committee are developing a transition plan that will include a search for a new president and CEO.

“CLIA has been fortunate to have Cindy at the helm for the last two years but we respect her decision to focus on her family and wish her all the best,” said Arnold Donald, Global Chair, CLIA and President and CEO, Carnival Corporation & plc.

CLIA has retained the services of executive search firm Russell Reynolds Associates to lead the search for a new president and CEO.