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RCCL’s Europe yields enjoy third year of double digit year growth

European itineraries of Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, have enjoyed their third consecutive year of double digit yield growth in 2014 despite a weak economic environment, noted Robin Farley, cruise industry analyst at UBS Securities in New York.

"Europe this year had its third year of double-digit yield increase even with Black Sea and Holy Land impact, and will end the year with European pricing 5% ahead of 2008 peak. Demand from Europeans this year and next year is higher despite economic slowing,” she said in a research note. TUI Cruises, a joint venture with TUI AG in Germany, is growing yield faster than RCCL's consolidated fleet with its new tonnage.

In Asia, China will account for 10% of the group’s 2015 summer capacity, and Asia overall will be 15% of deployments up from 12%. RCCL still pursuing conversations with C-Trip about China cruising joint venture. The Chinese company acquired celebrity Cruises’ Celebrity Century earlier this autumn.

RCCL says 2015 outlook encouraging as Europe itineraries sell well

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping company, said the both Europeans and Americans are keen to book 2015 European cruises and that the outlook for next year is encouraging

The company is experiencing strong early booking trends for 2015. “Booked load factors and APDs are higher than same time last year and the booking window has extended. Europe sailings are off to a particularly good start, with strong booking trends from North America and from Europe.  Caribbean pricing pressure continues through the first quarter, but we expect it to improve thereafter,” the company said in a statement.

“It is early days yet, but the view looking forward is very encouraging and the company is optimistic that 2015 will be the sixth consecutive year for yield growth. The company has sufficient visibility into 2015 to say that it is comfortable with the Street consensus of $4.55 per share. That would represent more than a 30% increase over this year's record profitability,” RCCL said.

"We anticipate another record year in 2015, an important step on the way to DOUBLE-DOUBLE," said Richard D. Fain, chairman and chief executive officer.  "Our strategy continues to drive better revenues, and coupled with cost discipline and moderate growth, we will continue to excel."

RCCL on track seen in July as Europe, Asia shine

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping company, said the outlook for the rest of 2014 remains as foreseen in July, with strong markets in Europe and Asia offsetting weakness in the Caribbean.

"Despite the usual swings, the trajectory for 2014 continues along the path described three months ago," said Jason T. Liberty, chief financial officer.  "Our satisfaction with the positive results in Europe and Asia continues unabated, as does our eagerness to lap the highly promotional Caribbean environment."

Bookings since the July earnings release have been solid and the company continues to be booked ahead of last year in both load factor and APD. Double-digit yield improvements on Europe and China sailings continue to offset the continuation of a highly promotional Caribbean environment.  

The company expects full year adjusted EPS to be approximately $3.45 per share.  Constant-Currency Net Yields are expected to increase approximately 2.5%, consistent with the mid-point of previous guidance. NCC excluding fuel are expected to be flat to slightly down on a Constant-Currency basis, consistent with prior guidance.

In the final quarter, Constant-Currency Net Yields are expected to be up approximately 3.5% in the fourth quarter of 2014 and NCC excluding fuel are expected to be up in the range of 2% to 3%.  TUI Cruises' additional capacity continues to be a key contributor to earnings for the fourth quarter. Based on current fuel pricing, interest rates and currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be in the range of $0.35 to $0.40 per share.

RCCL third quarter net profit reaches $490.2 million

Royal Caribbean Cruises Ltd. (RCCL, the world’s second largest cruise shipping group, reported third quarter results and provided a preliminary outlook for 2015. 

Group net profit rose to $490.2 million in the third quarter from $365.7 million in the same period last year, while revenues increased to $2.39 billion from $2.31 billion.

In the first nine months of the year, the profit increased to $654.4 million from $466.7 million, while revenues reached$6.25 billion, an increase from $6.10 billion a year earlier.

The company said early books for 2015 are robust and that it expects earnings of $4.55 per share for next year.

 

Chinese bank to finance three Silversea newbuildings at Fincantieri

The Industrial and Commercial Bank of China (ICBC), one of China’s leading state-owned investment banks,with an extensive international maritime business portfolio, has signed a agreement with Silversea Cruise Holding through its financial leasing arm, ICBC Leasing, to build three cruise ships at Fincantieri. Alan Lam reports.

 

It has emerged that the deal is worth about €800 million. This is the first Chinese bank directly involved in financing international cruise ship newbuilding venture. It is a new milestone not just for the financial institution, but for the country. It will help China taking another stepcloser to realising its ambition in the cruise shipbuilding sphere.

 

In January 2013 the same two parties reached an agreement to cooperate on the financial leasing business of five-star cruise company Silver Shadow. ICBC Leasing has beeotherwise active in maritime business; to date it owns and manages about 200 ships worldwide, including bulk freighters, container units, chemical tankers and cruise vessels.

 

This development is the latest in a series of major recent penetrations into the cruise sector by Chinese companies; among them are the Ctrip’s recent acquisition of a major tonnage and the agreement between Carnival, Fincantieri and CSSC to build cruise ships in China, not to mention RCCL’s involvement in the endeavour of CSSC Xiamen to design a Chinese cruise ship and the possible acquisition of a second ship by Bohai FerryThere will be more to come.

 

So far, at least, Fincantieri seems to be a major beneficiary in these newfound opportunities.

Viking Star