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

  • Written by Kari Reinikainen
  • Category: Top Headlines

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
  • Category: Top Headlines

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
  • Category: Top Headlines

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."

 

 

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