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Meyer Turku 2016 operating profit rose to €25 million

  • Written by Kari Reinikainen

Meyer Turku, the German owned Finnish cruise ship builder, has reported an increase in operating profit to €25 million last year from €15 million in 2015.

Revenues rose by a third, to €792 million from €594 million. Operating margin widened to 3.2% last year from 2.5% in 2015, the figures show.

“We are progressing solidly on a path of growth and the positive result enables us to invest more in the shipyard and to expand our shipbuilding team further through new recruitment,” said Jan Meyer, CEO, in a statement.

Carnival Cruise Line to develop new cruise destination on Grand Bahama island

  • Written by Teijo Niemelä

Officials from Carnival Cruise Line and the Bahamian government signed an agreement yesterday during a special signing ceremony in Freeport, Grand Bahama, for the construction of a new cruise port facility to be funded and operated by Carnival Cruise Line on Grand Bahama Island. The as-yet-unnamed planned port will be the largest purpose-built cruise facility ever constructed in The Bahamas and will take inspiration from the beauty of the Bahamian people and their islands. Features will include a one-mile stretch of beach, food, beverage and shopping outlets, a wide array of water-based amenities and other recreational facilities. The port will also feature a pier capable of accommodating two of Carnival’s largest cruise ships simultaneously and is expected to eventually host up to 1 million guests annually.

The multimillion-dollar project will provide a significant economic benefit for the country of The Bahamas, including many employment and economic opportunities throughout the development, construction and ongoing operation once completed.

“Carnival Cruise Line is the leader in year-round cruising to The Bahamas and this new development will not only provide a truly extraordinary and one-of-a-kind destination experience for our guests but it will further solidify our partnership with the people of The Bahamas,” said Christine Duffy, president of Carnival Cruise Line. “In 2017, along with Carnival’s sister lines, Carnival Corporation will bring close to 3 million guests to The Bahamas via calls to Nassau, Freeport, Grand Bahama, Half Moon Cay and Princess Cays, the latter two of which were developed and are operated by Carnival Corporation brands Holland America Line and Princess Cruises. Collectively, we represent the single largest cruise company investor in The Bahamas,” Duffy added.

During the signing ceremony, Carnival Corporation President and CEO Arnold Donald said, “When Ted Arison, the founder of Carnival and the modern day cruise industry, embarked on his first cruise, it was to The Bahamas. From that day until now, The Bahamas continues to be one of the most strategic and important destinations for our company.” Donald continued, “Signing this agreement today is especially meaningful to me, as we strive to further contribute to the prosperity of the people of The Bahamas through providing experiences that continue to exceed our guests’ expectations.”

Prime Minister the Right Honourable Perry G. Christie stated, “The Government of The Bahamas has had a long and close association with Carnival which has been of great economic benefit to both parties.” He continued, “This new cruise port initiative in East Grand Bahama will deliver a cruise port in the traditional sense, but more than that, its shore project will create a new ‘destination’ with a distinctive flavour and characteristics that offer the broadest Bahamian entrepreneurial and employment opportunities, representing another phase in the development of Grand Bahama as a viable tourist centre.”

The project is subject to a detailed public discussion process, environmental studies and permitting.

RCCL sees 2017-21 capital expenditure to total $9.0 billion

  • Written by Kari Reinikainen

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, expects to spend a total of $9.0 billion in capital expenditure in the years 2017-21, the company said.

“Based upon current ship orders, projected capital expenditures for full year 2017, 2018, 2019, 2020 and 2021 are $0.6 billion, $2.6 billion, $1.5 billion, $2.0 billion and $2.3 billion, respectively,” RCCL said in a statement.

“Capacity changes for 2017, 2018, 2019, 2020 and 2021 are expected to be -1.9%, 3.1%, 6.8%, 3.9% and 7.9%, respectively. These figures do not include potential ship sales or additions that we may elect to make in the future,” RCCL said.

Scheduled debt maturities for the remainder of 2017 plus 2018, 2019, 2020 and 2021 are $1.2 billion, $2.0 billion, $0.8 billion, $1.2 billion and $0.6 billion, respectively.

RCCL raises 2017 guidance on back of strong first quarter

  • Written by Kari Reinikainen

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, said it has updated full year adjusted earnings per share (EPS) guidance to a range of $7.00 to $7.20 from $6.90 to $7.10 after reporting strong rise in net profit in the first quarter of the present year.

The company expects a Net Yield increase in the range of 4.5% to 6.0% on a Constant-Currency basis and 4.0% to 5.5% on an As-Reported basis.

Net Cruise Costs excluding fuel are expected to be flat to up slightly on a Constant-Currency basis and flat on an As-Reported basis.

“Overall, the year has developed very much along the trajectory the company projected at the beginning of the year. Bookings started the year on a very strong note and continued to please. This strong demand for cruises generally has offset the recent headwinds from the disrupted Korean sailings mainly during the second and third quarters,” the company said in a statement.

"First quarter's results are evidence that demand for cruise has room to grow, especially considering a 7% yield improvement achieved in the first quarter of last year," said Jason T. Liberty, executive vice president and CFO, said in the statement. "With consumers making the choice to spend more on experiences, our innovative hardware and superb onboard delivery is thriving."

RCCL first quarter net profit more than doubles to $214.7 million

  • Written by Kari Reinikainen

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, has reported a string rise in first quarter net profit, with strong demand in Europe offsetting the negative impact of recent events in Korea.

Group net profit rose to $214.7 million in the first quarter from $99.1 million in the same period last year, while operating income increased to $279.5 million from $163.1 million. Revenues reached $2.01 billion from $1.92 billion.

Net yields on a constant currency basis increased 6.0% during the quarter. constant-currency net cruise costs excluding fuel decreased 4.4%. Bunker pricing net of hedging for the first quarter was $531 per metric ton and consumption was 334,000 metric tons

The company said in a statement that bookings, overall, are not materially different from the same period last year, with strength in Europe offsetting the negative impact recent events of Korea.

Currency and fuel related matters have not materially changed either, while costs continue to be under control and the strong first quarter results are the key drivers of the upward guidance revision for the full year (please see separate story).

“Our progress continues on a steady upward path toward our Double-Double goals," said Richard D. Fain, chairman and CEO, in the statement. "The year started off with a very positive tone and the tone has only continued to please. We are looking forward to our fifth consecutive year of double-digit earnings growth."