MV Werften delivers its first newbuild, Crystal Bach

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 03 August 2017 03 August 2017

Today, on August 3, MV Werften delivered the Crystal Bach, the first of four identical 'Rhine Class ships to be built by the shipyard.

The 135-metre long and 11.4-metre wide Crystal Bach was designed for river cruising in Europe. Up to 106 passengers will sail along the Rhine, Danube and Main Rivers through the Netherlands, Belgium, Germany and Switzerland in 55 large suites, all designed to be above the water line with horizontal sliding windows.

Most of the public areas have floor to ceiling glass, providing a spectacular view of the surroundings and reminiscence of designs of new personal yachts. The Palm Court has a glass-domed ceiling, which will allow passengers to see the sky during daylight and the moon and stars in the evening. The luxury river yacht offers its passengers the award-winning Crystal service, including personal butler service and the world’s highest crew-to-guest ratio in the river cruise industry.

The ship also features all the favorite facilities of the Crystal brand such as three gourmet restaurants, a spacious spa and gym, a counter current swimming pool, electric bicycles, piano bar, bistro and other facilities.

"Today, we proudly hand over this exclusive ship,” announced Jarmo Laakso, Managing Director of MV Werften, during the ceremony. "The 'Crystal Bach' is the first newbuilding project to be completed under the MV Werften flag. Our employees have done wonderful work and proven that they can meet the highest quality standards."

Edie Rodriguez, CEO and President of Crystal Cruises, stated: "With the Crystal Bach we now welcome the second member of the Crystal River Cruises fleet. We would like to thank MV Werften for this wonderful ship. In the past months, we have had the pleasure of working with this shipyard as an experienced and reliable partner and look forward to our cooperation in the coming three projects."

"We have incorporated the best navigational and safety standards on ocean ships to the Crystal fleet of river ships with four Azimuth thrusters for easy maneuverability, forward bridge with two navigators seated at all time with state-of-the-art navigation system and had river ship training at the Simwave simulator center in Rotterdam," said Gustaf Gronberg, SVP of Newbuilding and Marine Operations.

The Crystal Mahler, the second ship in the line, will be delivered in a few weeks' time. Numbers three and four of the Rhine Class, the Crystal Debussy and the Crystal Ravel, have been under construction at MV Werften in Wismar since January. The keel-laying ceremony took place in May; delivery to Crystal River Cruises is scheduled for early 2018.

The production programme of MV Werften includes nine ships in the next five years. In addition to four river cruise vessels, three Crystal "Endeavor Class" yachts for Crystal Yacht Expedition Cruises and two cruise ships of the 204,000 gross tons Global Class for Genting Cruises in Asia.

Royal Caribbean reports second quarter earnings and increases full year guidance

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 03 August 2017 03 August 2017

Royal Caribbean Cruises Ltd. has reported US GAAP and Adjusted Earnings per Share ("EPS") of $1.71 for the second quarter. This represents EPS growth of nearly 60% over same time last year. Better than anticipated performance in the second quarter combined with favorable booking trends are driving an increase in the Company's full year Adjusted EPS guidance to a range of $7.35 to $7.45.

Key highlights – second quarter 2017 results

– US GAAP and Adjusted Net Income was $369.5 million or $1.71 per share. Last year, US GAAP Net Income was $229.9 million or $1.06 per share and Adjusted Net Income was $235.2 million, or $1.09 per share in 2016.
– Gross Yields were up 10.2% on a Constant-Currency basis (up 8.7% As-Reported). Net Yields were up 11.5% on a Constant-Currency basis (up 9.9% As-Reported).
– Gross Cruise Costs increased 1.2% on a Constant-Currency basis (0.6% As-Reported). Net Cruise Costs ("NCC") Excluding Fuel were down 0.9% on a Constant-Currency basis (down 1.4% As-Reported).

Full year 2017 forecast

– Adjusted EPS is expected to be in the range of $7.35 to $7.45 per share.
– Net Yields are expected to increase 5.5% to 6.0% on a Constant-Currency basis, up approximately 6.0% on an As-Reported basis.
– NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency and As-Reported basis.

"Our brands are executing beautifully, keeping the business in an exceptionally strong position," said Richard D. Fain, chairman and CEO. "Strong close-in demand for cruise bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond."

Second quarter results

US GAAP and Adjusted Net Income for the second quarter 2017 was $369.5 million or $1.71 per share, compared to US GAAP Net Income of $229.9 million or $1.06 per share and Adjusted Net Income of $235.2 million, or $1.09 per share in 2016.

Gross Yields were up 10.2% on a Constant-Currency basis. Net Yields on a Constant-Currency basis increased 11.5%, exceeding prior guidance due to strong close-in demand driving higher pricing and occupancy.

Gross Cruise Costs increased 1.2% on a Constant-Currency basis. Constant-Currency NCC Excluding Fuel decreased 0.9%.

Bunker pricing net of hedging for the second quarter was $527 per metric ton and consumption was 324,000 metric tons.

Full year 2017

The company updated full year Adjusted EPS guidance to a range of $7.35 to $7.45, a $0.30 increase at the midpoint versus previous guidance. Bookings continue to be very robust.

The company's booked position for the remainder of 2017 continues to set new records. Looking further ahead, the company's booked position for the next twelve months is also strong, up on both rate and volume, versus the same time last year. Net Yields for the year on a Constant-Currency basis are expected to increase 5.5% to 6.0%, up relative to prior guidance due to the better results in the second quarter as well as stronger trends for the balance of the year.

NCC Excluding Fuel are expected to be up approximately 1.0% on a Constant-Currency basis for the year.

"Demand has remained strong, and we have captured the related revenue opportunity," said Jason T. Liberty, executive vice president and CFO. "These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets."

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2017 EPS to be in the range of $7.35 to $7.45 per share.

Third quarter 2017

Constant-Currency Net Yields are expected to be up 4.0% to 4.5% in the third quarter of 2017. Strong demand trends for Europe and North America products are driving improvement over an already strong previous year. NCC Excluding Fuel are expected to be up approximately 4.0% on a Constant-Currency basis.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects third quarter Adjusted EPS to be approximately $3.45 per share.