EU launches Fincantieri-Chantiers merger investigation with deep concerns
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 31 October 2019 31 October 2019
The European Commission said it has opened an in-depth investigation to assess the proposed acquisition of Chantiers de l'Atlantique in France by the Italian shipbuilder Fincantieri, under the EU Merger Regulation.
“The Commission has preliminarily concluded that it is unlikely that a timely and credible entry from other shipbuilders would counteract the possible negative effects of the transaction,” the European Commission said in a statement.
“The transaction may therefore significantly reduce competition in the market for cruise shipbuilding, which could lead to higher prices, less choice and reduced incentives to innovate. The Commission has also preliminarily concluded that large customers would not have sufficient buyer power to counteract any risk of price increases as a result of the transaction,” it said.
Commissioner Margrethe Vestager, responsible for competition policy, said in the statement: “Demand for cruise ships is booming globally. Chantiers de l'Atlantique and Fincantieri are two global leaders in this sector. This is why we will carefully assess whether the proposed transaction would negatively affect competition in the construction of cruise ships to the detriment of the millions of Europeans taking a cruise every year."
According to the agreement between Fincantieri and the French government, would acquire a 50% stake in Chantiers de l’Atlantique, which has a large shipyard in St Nazaire, from the French state, which also agreed to lend a 1% stake to Fincantieri to allow it to take effective control on condition the company makes commitments on jobs, governance and intellectual property, Reuters reports.
Hurricane effect shaves RCCL forecast in otherwise strong year
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 30 October 2019 30 October 2019
Royal Caribbean Cruises Ltd (RCCL), the Miami based cruise shipping group, said its 2020 earnings per share (EPS) would be higher than forecast at the publication of the second quarter report save for a negative effect of Hurricane Dorian.
“The company expects full year adjusted EPS to be in the range of $9.50 to $9.55 per share. This range includes the negative impact of approximately $0.15 per share from Hurricane Dorian. Excluding this impact, we are increasing the midpoint of our guidance by $0.08 per share,” the company said in its third quarter interim report. It had forecast EPS in the range of $9.55 to $9.65 in the second quarter report.
The company expects a net yield increase of approximately 8.0% in constant currency and approximately 6.75% as reported. The company's booking strength has completely offset the negative yield impact related to Hurricane Dorian.
Net cruise costs excluding fuel per available passenger capacity day APCD are expected to be up approximately 11.0% in Constant-Currency and up approximately 10.5% as reported. “The increase in this updated guidance is driven by the reduction in capacity and relief efforts from the hurricane together with a further increase in technology and product development investments. These expenses are being offset by expected favorability from activities below the line,” RCCL said.
"2019 is shaping up to be another year of solid yield growth and record earnings despite some unusual headwinds," said Jason T. Liberty, executive vice president and CFO.
"As we enter 2020, we are particularly enthusiastic about the new ship deliveries, the development of new destinations, our fleet modernization and technology initiatives. These investments will help us deliver even greater vacations while generating higher yields and better returns," he said.
US, China drive RCCL interim profit rise
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 30 October 2019 30 October 2019
Royal Caribbean Cruises Ltd (RCCL) the world’s second largest cruise shipping group, has reported higer third quarter and nine month interim profits than last year on back of strong markets in the US and China, offsetting negative impact from Hurricane Dorian.
Group net profit rose to $890.3 million in the third quarter from $810.4 million a year earlier, while operating income rose to $890.8 million from $799.7 million. Revenues increased to $3.18 billion from $2.79 billion.
In the first nine months of the year, net profit increased to $1.63 billion from $1.49 billion and operating income to $1.78 billion from $1.53 billion. Revenues reached $8.43 billion compared to $7.16 billion year on.
"Our business continues to thrive and exceed our expectations," said Richard D. Fain, chairman and CEO in a statement. "While Hurricane Dorian had a negative impact, stronger demand for our brands and our key itineraries exceeded our expectations. Excluding the hurricane impact, we are not only able to maintain our yield and earnings guidance, but to raise both slightly as a result of particularly strong performance in the US and China."
The results include the negative impact of $27 million or $0.13 per share from itinerary disruptions and relief efforts related to Hurricane Dorian. and Adjusted Net Income was $836.3 million or $3.98 per share. Earnings per share rose to $4.21 from $3.88 in the third quarter.
Gross yields rose by 6.6% and net yields by 6.4% in constant currency, slightly better than guidance when considering the impact of the hurricane, which reduced revenue by $21 million and slightly reduced yields.
Gross cruise costs per available passenger capacity day (APCD) increased 7.5% in constant currency. Net cruise costs excluding fuel per APCD were up 11.0% in constant currency terms.
The reduction in capacity and relief efforts related to the hurricane negatively impacted this metric by 150 basis points. Absolute costs for the quarter were significantly better than expected, due to timing.
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