Legal settlement, better market lift RCCL in first quarter

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Published on Thursday, 29 April 2010 09:14

Written by Kari Reinikainen

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, has announced net income for the first quarter 2010 of $87.4 million, or $0.40 per share, compared to a net loss of $36.2 million, or ($0.17) per share, in first quarter of 2009.

“Included in the 2010 results is a previously announced $0.39 per share legal settlement. Revenues were better than expectations on the strength of close-in bookings. Cost containment efforts were effective across fuel, cruise operating, and selling, general & administrative expenses. Absent the legal settlement, first quarter 2010 net income improved by approximately $40 million versus the first quarter of 2009,” the company said  

Revenues improved year over year to $1.5 billion in the first quarter of 2010 compared to $1.3 billion in the first quarter of 2009 as a result of capacity increases combined with Net Yield improvements. Net Yields improved 2.6%.  Net cruise costs  in the first quarter of 2010 decreased 2.2% from the prior year, and NCC excluding fuel decreased 0.9%.

The better than expected expense performance was the result of improved fuel cost management and continued broad cost focus across cruise operating, and selling, general & administrative expenses.  

Fuel costs were approximately $8 million better than previous calculations resulting from better than expected consumption and the company's fuel hedging program, which more than offset recent increases in at-the-pump pricing. Fuel consumption during the first quarter of 2010 was 307,000 metric tons.

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