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Carnival orders second 180,000 gross ton ship for P&O Cruises

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 26 January 2018 26 January 2018

Carnival Corporation & plc said it has signed a shipbuilding contract for a second 180,000 gross ton next-generation cruise ship for its P&O Cruises brand in the UK with Meyer Werft GmbH in Germany. The ship is scheduled to be delivered in 2022.

"This vessel will be the largest cruise ship to be built specifically for the British market, and will accommodate approximately 5,200 guests. Sister ship to fellow P&O Cruises ship due for delivery in 2020, the vessel will feature Carnival Corporation(&plc')s exclusive “green cruising” design as one of the first generation of cruise ships to be powered by Liquefied Natural Gas (LNG) both while in port and at sea, which will significantly reduce air emissions with the shipping industry’s most advanced fuel technology," the company said in a statement.

The new ship is part of Carnival Corporation & plc's ongoing fleet enhancement strategy with 19 new ships scheduled for delivery between 2018 and 2022, creating excitement in the vacation market and continuing to exceed guest expectations while accelerating demand for cruising, the fastest growing segment in the vacation industry.

In total, Carnival group has agreements in place with leading German and Finnish shipbuilders Meyer Werft and Meyer Turku to build eight LNG-powered cruise ships across four of its 10 global cruise brands with delivery dates between 2018 and 2022.

 

 

RCCL to pay $80 million in bonuses to staff, excluding corporate officers

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 24 January 2018 24 January 2018

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said it would pay a total of $80 million in bonuses to its 66,000 staff after reporting record results for 2017.

“After announcing RCCL had achieved its three-year Double-Double goal of doubling earnings per share and recording a double-digit return on invested capital, the company today told employees they will be thanked for their contribution with individual salary bonuses of 5%,” the company said in a statement.

"Exceptional results require exceptional effort," said Richard D. Fain, RCL's chairman and CEO. "Reaching the Double-Double required remarkable focus and discipline from our employees, and they delivered. "Employees will receive equity awards equal to 5% of their 2017 salaries in an $80 million programme called the "Thank You, Thank You Bonus."

The awards, which vest over three years, will go to all employees – shipboard and shoreside, full-time and part-time, domestic and overseas. Corporate officers, however, are excluded. In addition to the 5% equity awards, the company will contribute to the Crew Welfare Fund for upgrades to crew living and recreational areas.

RCCL forecasts 2018 EPS to rise to $8.55 to $8.75 range on strong US, European demand 

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 24 January 2018 24 January 2018

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said its booked position for 2018 is better than last year's record high and at higher rates.

“North American and European consumers continue to drive strong demand for all of our main products. These trends, coupled with strong onboard spend and a positive outlook for our Asia Pacific products, are positioning the company for a ninth consecutive year of yield growth,” the company said in a statement.

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company estimates 2018 Adjusted EPS will be in the range of $8.55 to $8.75 per share. The corresponding figure for 2017 was $7.53

“We are also very excited about the 2018 introduction of both Symphony of the Seas and Azamara Pursuit in Europe, in April and August respectively, and the introduction of Celebrity Edge in Fort Lauderdale in November. These new ships will be important contributors to 2018yield growth,” RCCL said.

The company expects a net yield increase in the range of 1.5% to 3.5% on a constant currency basis and 2.75% to 4.75% on an as reported basis for the full year.

"Our yields are increasing on top of an exceptional 6.4% Net Yield growth experienced in 2017," said Jason T. Liberty, executive vice president and CFO. "This is quite extraordinary and a testament to the strength in the demand for cruising and our brands," he added.

Net cruise costs excluding fuel are expected to rise 1.5% to 2.0% on a constant currency and 2.0% to 2.5% on an as reported basis.

RCCL hits Double-Double target as 2017 net profit hits record 1.63 billion

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 24 January 2018 24 January 2018

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said it had hit its Double-Double performance targets as it reported 2017 net profit of $1.63 billion, a new record.

In the final quarter of last year, the profit rose to $288.0 million from $281.0 million a year earlier, while operating profit (EBIT) increased to $307.3 million from $296.8 million and revenues reached $2.00 billion from $1.90 billion.

In the full year 2017, net profit rose to $1.63 billion from $1.28 billion in the year before. Operating profit rose to $1.74 billion from 1.48 billion and revenues increased to $8.78 billion from $8.49 billion. Adjusted earnings per share for the full year came at $7.53 per share — beating the Double-Double EPS target and the mid-point of previous guidance by $0.75 and $0.16, respectively,’ the company said in a statement.

The Double-Double programme was announced in July 2014, with an aim double the company’s 2014 earnings per share by 2017 and increase return on invested capital to double digits.

"Our teams worked hard to achieve the Double-Double goals and now they have done it", said Richard D. Fain, chairman and CEO. "Each of the brands performed excellently during the past year raising their guest satisfaction and employee engagement scores to new heights. This augurs well as we focus on our previously announced 20/20 Vision," he added. A combination of strong demand for our North American and European products as well as our onboard offerings drove the growth rate, RCCL said.

Key metrics of the full year 2017 results:

Gross Yields were up 5.7% on a Constant-Currency basis (up 5.9% As-Reported).

Net Yields were up 6.4% on a Constant-Currency basis (up 6.5% As-Reported).

Gross Cruise Costs per APCD increased 1.9% on a Constant-Currency and As-Reported basis.

 

Net Cruise Costs ("NCC") excluding Fuel per APCD were up 2.0% on a Constant-Currency and As-Reported basis.