Royal Caribbean Cruises, Limited (RCCL), the world’s second largest cruise shipping group, is upbeat about the outlook for next year as booking trends are strong, load factors firmer and capacity will increase, the company said in a statement.
“The company is experiencing strong early booking trends for 2018. Booked load factors and APDs (available passenger days) are higher than same time last year while the booking window has continued to extend,” RCCL said.
“Management is excited by the 2018 introduction of Symphony of the Seas in Europe next spring and Celebrity Edge in Fort Lauderdale in December of 2018.
While still early in the booking cycle, the view for 2018 is encouraging and the company expects another year of solid yield and earnings growth,” RCCL said.
Royal Caribbean Cruises, Limited (RCCL), the world’s second largest cruise shipping group, said the hurricanes of this autumn were unusually impactful because of when and where they hit and the net effect was a cost to the company in excess of $55 million or $0.26 per share.
RCCL reported third quarter EPS (earnings per share) of $3.49 compared to $3.21in the same period last year.
“The unprecedented series of hurricanes this summer devastated many people and places in Texas, Florida and the Caribbean and our sympathies go out to all those who suffered and are suffering losses. The repair and recovery efforts have been intense and most of the affected destinations served by our cruise ships have already been reopened or are about to be reopened,” RCCL said in a statement.
“Most of this impact was from lost revenue, but there were also direct costs associated with the storms and with the company's humanitarian efforts. In addition, there were significant timing shifts across a wide range of activities as expenses were shifted between quarters to adjust to the storms. Nevertheless, the company still expects to generate earnings for the year within the increased range of guidance provided prior to the storms,” RCCL said.
Royal Caribbean Cruises, Limited (RCCL) expects full year adjusted earnings per share (EPS) to be in the range of $7.35 to $7.40 per share.
“Excluding the cost of the hurricanes, adjusted EPS would have been in the range of $7.60 to $7.65 per share,” the company said in a statement. For 2016, the figure was $6.08
Constant-Currency and As-Reported Net Yields are expected to increase approximately 6.0% for the full year and Net cruise costs excluding fuel per available passenger capacity day (APCD) are expected to rise approximately 2.0% on a Constant-Currency and As-Reported basis.
“Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2017 Adjusted EPS to be in the range of $7.35 to $7.40 per share,” RCCL stated.
Royal Caribbean Cruises, Limited (RCCL), the world’s second largest cruise shipping group, has reported record earnings for the third quarter on strong demand and cost discipline.
Net profit rose to $752.8 million from $693.3 million in the same period last year as revenues rose to $2.57 billion from $2.56 billion. Operating profit (EBIT) rose a fraction, to $737.5 million from $734.9 million.
Earnings per share rose to $3.49 from $3.21.
In the first nine months of the year, RCCL’s net profit rose to $1.34 billion from $10.2 billion as revenues increased to $6.77 billion from $6.59 billion. Operating profit rose to $1.46 billion from $1.18 billion.
"Delivering record earnings during a period of such unprecedented disruption is a testament to the strength in demand for cruising and for our brands," said Jason T. Liberty, executive vice president and CFO.
"Strong demand trends coupled with our continued cost discipline have put us in a strong position to successfully complete our Double-Double program. As a matter of fact, I am pleased to report that we have already achieved our Double-Double targets on a trailing twelve month basis through September 2017,” he said in a statement.
Gross yields were up 5.6% on a Constant-Currency basis. Net yields increased 5.3% on a Constant-Currency basis. “This was better than previous guidance due to strong close in booking and pricing trends on China, Europe, and North American itineraries. While the hurricanes had a negative impact on overall revenue, they were neutral to Net Yields in the third quarter,” the company said in a statement.
Gross cruise costs per available passenger capacity day (APCD) increased 5.2% on a Constant-Currency basis. Net cruise costs (NCC) Excluding Fuel per APCDs were up 5.7% on a Constant-Currency basis. “The reduction in capacity due to the hurricanes mainly drove the increase in the cost metric relative to guidance. Absolute costs for the quarter were better than expected, mainly due to timing,” RCCL said.
Favourable trends in fuel, in both price and consumption, also provided a benefit to the quarter. Bunker pricing net of hedging for the third quarter was $498.55 per metric ton and consumption was 322.4 metric tons.
Lindblad Expedition Holdings, the US based and listed expedition cruise specialist, said it has ordered a 69 cabin newbuilding from Ulstein Verft in Norway.
The ship, which will feature the X-Bow that Ulstein has develop to provide superior seakeeping qualities, would be delivered in 2020. There is an option for two additional ships to be delivered in subsequent years.
The state-of-the-art polar vessel has been designed as the ultimate expedition platform with a focus on safety and comfort, as well as incorporating innovative sustainability solutions to reduce its environmental impact.
A core feature is Ulstein’s signature X-BOW®, a distinctive bow that provides fuel efficiency while significantly improving guest comfort in rough seas; and a very high ice class for access deep into polar regions. The ship’s expanded fuel and water tanks provide for extended operations in remote areas; while the zero-speed stabilizers will ensure stability underway, whether at zero speed when stopped for wildlife observation, or embarking/disembarking the ship.
“We are incredibly excited to be working with Ulstein and their brilliant team of engineers and designers on this state-of-the-art vessel as we continue expansion of our fleet. It is the next step in the long-term growth of the company, and will be the most extraordinary global expedition ship in the world on a multitude of levels,” said Sven Lindblad, President and CEO of Lindblad.
“The launch of this ship will mark the 50th anniversary year of the first-ever purpose-built expedition ship, Lindblad Explorer, which was built by my father, Lars-Eric Lindblad, and will set another important milestone in the company’s commitment to deliver expedition travel at its best,” added Lindblad.
In keeping with the Lindblad Expeditions-National Geographic ethos to connect guests with the environment being explored, the ship will be designed to access the outside environment from anywhere on the ship. With 75% of the cabins featuring balconies for private viewing; multiple observation decks inside and outside, and new “observation wings,” the surrounding environs will always be accessible.
Off-ship exploring will be greatly enhanced with an innovative Zodiac loading system which will allow everyone to get ashore quickly and safely, ensuring quick access to every destination. The ship’s complement of expedition tools for exploration will include kayaks, cross-country skis, a remotely operated vehicle (ROV), hydrophones, a video microscope, underwater video cameras, a helicopter landing platform, and more to be announced in the coming months.
The ship will afford gracious comfort and an unparalleled level of service, with the highest comfort class for guests to ensure a quiet and peaceful environment onboard. The 69 spacious guest cabins and suites will include 12 cabins for solo travellers. The spa and fitness area will include treatment rooms, saunas, a fitness room, a relaxation area and yoga room; and there will be two infinity Jacuzzis for the utmost relaxation in pristine environments. Dining offerings include a main restaurant with outstanding views to the surroundings, and an outdoor barbeque and bistro area.
"Our expedition cruises, operated through our alliance with Lindblad Expeditions, have delivered remarkable experiences to our guests for the past 13 years," said Nancy Schumacher, head of Travel and Tour Operations for National Geographic. "The expansion of the Lindblad-National Geographic fleet is truly terrific news, as it allows us to offer these unforgettable trips to even more travellers in the future. We look forward to joining our partner Lindblad Expeditions in celebrating the launch of the latest addition to the Lindblad-National Geographic fleet."
“We are pleased to have been chosen as a partner for this exciting project. Lindblad is an innovative company and a frontrunner in the exploration cruise industry. We look forward to turning this project into reality together with Lindblad and their partners,“ stated Gunvor Ulstein, CEO at Ulstein Group.