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RCCL lowers 2018 EPS guidance ceiling by 5 cents, raises floor by same amount

  • Written by Kari Reinikainen
  • Category: Top Headlines

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, has raised the floor of its 2018 earnings per share  (EPS) guidance by $0.05 and lowered the ceiling by the same amount, information released by the company shows.

In its 2Q18 earnings release, RCCL said adjusted EPS for the full year are expected to be in the range of $8.70 to $8.90 per share. Today it narrow the guidance to the range of $8.75 to $8.85 per share.  “This range includes a negative impact of approximately $0.10 per share from currency and fuel and also includes Silversea's operations, RCCL said.

Net yields are expected to increase 4.0% to 4.5% in constant currency and approximately 4.5% as reported.  These metrics include approximately 80 basis points from Silversea's operations.

Net cruise costs (NCC) excluding fuel per available passenger capacity day (APCD) are expected to increase by approximately 4.5% in constant currency and by 4.5% to 5.0% as reported.  These metrics include approximately 140 basis points from Silversea's operations.

RCCL third quarter net income jumps to $810.4 million

  • Written by Kari Reinikainen
  • Category: Top Headlines

Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, has reported a rise in net income to $810.4 million in the third quarter compared to $752.8 million in the same period last year.

“Adjusted net income was $836.3 million or $3.98 per share, beating the mid-point of the guidance by $0.05 per share.  Last year, both US GAAP and Adjusted Net Income were $752.8 million or $3.49 per share,” RCCL said in a statement. Revenues increased to $2.80 billion from $2.57 billion and operating income to $799.3 million from $752.8 million.

In the January-September period, net income rose to $1.49 billion from $1.34 billion on revenues of $7.16 billion, up from $6.77 billion year on. Opewraying income rose to $1.53 billion from $1.44 billion.

In the third quarter, gross yields rose 1.9% and net yields by 2.6% in constant currency, exceeding prior guidance due to strong close-in demand for our core products and better onboard revenues.

Gross cruise costs per available passenger capacity day (APCD) increased 0.2% in constant currency.  Net cruise costs (NCC) excluding Fuel per APCD were down 0.1% in constant currency, slightly higher than guidance, driven by timing.

Bunker pricing net of hedging for the third quarter was $538.57 per metric ton and consumption was 338,700 metric ton, the company said in a statement.

Hurtigruten contracts third hybrid powered expedition ship at Kleven

  • Written by Kari Reinikainen
  • Category: Top Headlines

Hurtigruten, the Norwegian expedition cruise specialist, said it has contracted a groundbreaking hybrid powered expedition cruise ship with the Kleven shipyard in Norway.

The new ship’s design, construction, engineering and advanced technology would be based on Hurtigruten’s two next-generation ships, Roald Amundsen and Fridtjof Nansen, currently under construction at the Kleven shipyard in Norway. It has now signed a memorandum of understanding to build a third ship with the same yard.

“We are thrilled to introduce yet another revolutionary hybrid powered expedition ship. This groundbreaking vessel will take our guests to some of the most spectacular areas of our planet, in a more sustainable and environmentally-friendly way than ever seen before, Hurtigruten CEO Daniel Skjeldam said in a statement.

The new hybrid powered expedition ship, accommodating 530 guests, will be custom built for some of the most extreme conditions on the planet, with specially designed, ice-strengthened hull.

“These are greener, more advanced cruise ships than the world has ever seen – and ships that will raise standards for the whole industry to follow, as we enter a new era of expedition cruising driven by sustainability,”  Skjeldam said.

The new ship is expected to be delivered in the second quarter of 2021. Among the innovative green features on the new ship, are substantially larger battery packs to make expedition voyages even more sustainable.

“We are grateful for the confidence Hurtigruten shows us by signing a memorandum of understanding for a third, advanced expedition vessel with green technology combined with premium guest comfort. This is a confirmation of our unique skills and facilities, “ Kleven CEO Olav Nakken said in the statement.

Celebrating its 125th anniversary in 2018, Hurtigruten is the world’s largest expedition cruise operator with a fleet of 17 ships in service.

PortMiami sets a record year – its strongest ever

  • Written by Teijo Niemelä
  • Category: Top Headlines

PortMiami, in collaboration with its cruise and cargo partners, posted a record year. The Port experienced an increase of 5.8% in containerized cargo movements for its 2018 Fiscal Year with a total of 1,084,000 (twenty-foot equivalent units) and an increase of 4.7% in cruise visitors with a total of 5,592,000 passengers during the 12-month period ending Sept. 30, 2018.

For the fourth consecutive year, PortMiami has surpassed the 1 million TEU mark. Port officials attribute the growth to a strong balance of global trade and more than $1 billion of completed capital infrastructure improvements that offer shippers a strategic location equipped to handle Post-Panamax vessels requiring a -39 ft. draft or deeper. To date, the Port has welcomed more than 250 Post-Panamax vessels that could not have called without the completion of the deep dredge project or without the acquisition of new Super Post-Panamax cranes.

On the cruise side, PortMiami officials attribute growth to expanded business opportunities. In 2018, Royal Caribbean International added sailings to the Empress of the Seas and welcomed the newly renovated Mariner of the Seas. Oceania Cruises and Disney Cruise Line extended their winter seasons. The Port also welcomed three new cruise lines: Viking Ocean Cruises, Victory Cruise Lines, and Seabourn. Additionally, it welcomed Carnival Cruise Line’s Carnival Magic and its new build, the Carnival Horizon. MSC also introduced its new build, the MSC Seaside, to the port’s lineup.

"I am proud to say that today PortMiami is a full-service global hub handling some of the largest vessels in the industry," said Miami-Dade County Mayor Carlos A. Gimenez. "We’re starting to see the results of more than $1 billion of completed infrastructure and a port team that gets the job done. I would like to thank the entire PortMiami team for their hard work and dedication. The Port’s continued growth would not be possible without them."

"I want to thank all of PortMiami’s dedicated partners including the cruise and cargo lines, the International Longshoremen’s Associations’ Locals 1416 and 1922, Miami-Dade Police and Fire Departments, the Transportation Security Administration, U.S. Customs and Border Protection Miami, U.S. Coast Guard, the Biscayne Bay Pilots, among so many others," said Chairwoman of the Economic Development and Tourism Committee Rebeca Sosa. "New facilities, berths and terminals are in the works to accommodate the industry’s new generation of vessels. The future is only getting brighter at our seaport."

MSC Cruises to build four 64,000 gross tons luxury ships at Fincantieri

  • Written by Kari Reinikainen
  • Category: Top Headlines

MSC Cruises, the world’s fourth largest cruise shipping group, has signed a memorandum of agreement (MOA) with Fincantieri, the Italian shipbuilder, for the construction of four ultra-luxury cruise ships for a total value in excess of €2 billion, the shipbuilder said in a statement. 

The ships, the first of which will be delivered in Spring 2023, will have gross tonnage of about 64,000 gross tons and feature 500 cabins. The remaining three ships will come into service one per year over the following three years.

The ships will feature, amongst other, the best and latest environmental technology and other cutting-edge maritime solutions at sea. They will also showcase highly-innovative design as well as introduce ground-breaking options for guest comfort and relax.

Pierfrancesco Vago, MSC Cruises’ Executive Chairman, said: “It is off the back of the great success of our ship-within-a-ship luxury concept that our guests asked us to enter into the ultra-luxury segment, as a natural evolution of the MSC Yacht Club. These ships will be able to offer unique itineraries, thanks to their size, and the guest services will be taken to another level, including our personalised MSC Yacht Club butler service, available 24/7.

Vago continued, “I am especially pleased to be able to further extend our partnership with Fincantieri through this new order. The award-winning Seaside and Seaside-Evo class have already been recognised as ground-breaking and innovative designs. We are now introducing another new class, which will establish a new standard of ultra-luxury at sea with ships that will showcase the quality and highest standards that are associated with Made in Italy.”