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Fincantieri to boost synergies, sees 49 million plus cruise passengers in 2030

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 28 March 2018 28 March 2018

Fincantieri, the Italian shipbuilding group that is the biggest builder of cruise ships in the world, has presented a business plan for the years 2018-22, which calls for closer synergies between its yards and supply chain in the cruise ship sector.

To he company said in a statement that to better deploy its backlog, it plans to optimise the productive capacity of Italian shipyards and along the supply chain, besides leveraging on the substantial production synergies with Vard’s Romanian shipyards, particularly through an increased use of the Tulcea yard to support the Italian production network, therefore reducing the overload that would be otherwise incurred.

“The positive trend in global cruise tourism keeps sustaining momentum for the cruise activities of the Group. In fact, with respect to the previous Plan, the positive outlook for this tourist segment is confirmed, with an expected number of cruise passengers in 2030 exceeding 49 million (vs 25.8 million in 2017), amounting to a CAGR of 5.1%,” Fincantieri said.

Its cruise ship order portfolio is characterised by both a positive trend in lower berth pricing and a greater proportion of large cruise ships (above 140,000 gross tons); the combined effect of these two factors will allow the development of innovative projects with greater value.

“Furthermore, the Group will build an increasing number of luxury-niche cruise ships (a fast growing sub-segment) which are usually more profitable, despite the smaller size,’ fincantieri said.

Such expectations are confirmed by the strategies implemented by cruise operators, who started substantial newbuilding programs, particularly aimed at emerging markets, to anticipate demand growth and gain a more competitive positioning in the market. “Consequently, as the Group’s shipyards are now operating at full capacity, with planned production schedules until 2022, market prices will be positively impacted,” the company said.

In the new business plan, 2022 revenues are expected to grow up to 50% versus 2017, accompanied by a significant increase in profitability with an EBITDA margin between 8% and 9% (corresponding with a growth in EBITDA of up to 100% versus 2017). In 2022 the Adjusted net income margin is expected to be between 3% and 4%.

Carnival raises 2018 EPS guidance to $4.20 to $4.40 range

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 22 March 2018 22 March 2018

Carnival Corporation & plc, the Anglo-American cruise shipping group, said it expects full financial year to 30 November 2018 adjusted earnings per share to be in the range of $4.20 to $4.40 compared to December guidance of $4.00 to $4.30 and 2017 adjusted earnings per share of $3.82.

“At this time, cumulative advanced bookings for the remainder of 2018 are in line with the prior year at higher prices. Since January, booking volumes for all future periods have been running ahead of prior year at higher prices,” the company said in a statement.

President and Chief Executive Officer Arnold Donald said: “ "The booking strength achieved during this year's wave season, outpacing even last year's record levels, demonstrates sustained strong demand for our world's leading cruise brands and delivers further confidence in our raised earnings guidance.”

“We remain on track to achieve double-digit return on invested capital while continuing to return cash to shareholders through ongoing share repurchases and dividend growth,” he stated.

Based on current booking trends, the company expects full year 2018 net revenue yields in constant currency to be up approximately 2.5% compared to the prior year, in line with December guidance. The company expects full year net cruise costs excluding fuel per ALBD in constant currency compared to the prior year to be up approximately 1.0%, also in line with December guidance. Changes in fuel prices (including realized fuel derivatives) and currency exchange rates are expected to increase earnings by 0.10 per share compared to December guidance.

Second quarter constant currency net revenue yields are expected to be up approximately 2.5% to 3.5% compared to the prior year.

Net cruise costs excluding fuel per ALBD in constant currency for the second quarter of 2018 are expected to increase by approximately 4.0% to 5.0% compared to the prior year. Based on the above factors, the company expects adjusted earnings per share for the second quarter 2018 to be in the range of $0.56 to $0.60 versus 2017 adjusted earnings per share of $0.52.

Carnival group first quarter net profit rises to $391 million

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 22 March 2018 22 March 2018

Carnival Corpotation & plc, the world’s largest cruise shipping company, has reported a rise in both net and operating income (EBIT) on strong start of the financial year.

Net profit climbed to $391 million in three months to 28 February from$352 million in the same period a year earlier, while EBIT rose to $419 million from $368 million. Revenues rose to $4.23 billion from $3.79 billion.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald said in a statement: "We are off to a strong start to the year achieving another quarter of record earnings on record revenues and exceeding the high end of guidance.”

“This strong operational execution affirms our efforts to create demand in excess of measured capacity growth and exceed guest expectations once onboard. Our guest experience efforts, coupled with our ongoing marketing and public relations programs are clearly accelerating cruise demand across the board to drive cruise ticket prices higher," he said.

Key information for the first quarter 2018 compared to the prior year:

Gross revenue yields (revenue per available lower berth day or "ALBD") increased 9.2%. In constant currency, net revenue yields increased 3.9% for 1Q 2018, better than December guidance of up 1.5% to 2.5%.

Gross cruise costs including fuel per ALBD increased 9.0%. In constant currency, net cruise costs excluding fuel per ALBD increased 1.0%, better than December guidance of up 2.0% to 3.0%, principally due to the timing of expenses between quarters.

Changes in fuel prices (including realized fuel derivatives) decreased earnings by $0.04 per share, offset by an increase in earnings due to changes in currency exchange rates of $0.04 per share.

Mein Schiff 2 to remain in Germany, older and smaller ex Century to Marella Cruises

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 March 2018 20 March 2018

The termination of a Chinese joint venture of Royal Caribbean Cruises, Ltd (RCCL) and its partner Ctrip means that Marella Cruises, the British cruise line owned by TUI AG, will acquire the 72,458 gross ton Golden Era that was built in 1995 as Century of Celebrity Cruises, from the venture.

Delivery is expected to take place in December, RCCL said in a statement.

“As a result of this transaction, TUI Cruises will now retain Mein Schiff 2 in its fleet, rather than selling it to Marella Cruises, giving TUI Cruises increased capacity in the strong German market,” RCCL continued.

Mein Schiff 2 was built as Mercury of Celebrity Cruises and delivered in 1997. It is of 76,552 gross tons.

RCCL and Ctrip end China joint venture

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 March 2018 20 March 2018

Royal Caribbean Cruises Ltd. (RCCL) and its Chinese partner Ctrip have announced that they are ending the SkySea Cruise Line joint venture.

After the sale of Golden Era, it is expected that SkySea will wind down its business operations before the end of 2018. The companies expect that favorable business conditions in China and elsewhere will allow them to absorb most SkySea employees into available positions at RCCL and Ctrip, the two companies said in a statement.

Through its Royal Caribbean International brand, RCCL will continue to serve the Chinese market, with the largest fleet deployment in the region and a strong collaborative relationship with Ctrip.

Royal Caribbean expects the impact of the transactions to fall in a range of $0.12 to $0.15 a share in FY2018. The loss will be excluded from 2018 Adjusted Net Income.