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Fincantieri to build third 54,000 gross ton ship for Regent Seven Seas

  • Written by Kari Reinikainen
  • Category: Top Headlines

Norwegian Cruise Line Holdings Ltd. (NCLH) signed a contract with the Italian shipbuilder Fincantieri for the construction of one an ultra-luxury cruise ship for the NCLH group’s Regent Seven Seas Cruises brand to be delivered in 2023. The value of the agreement amounts to about €474 million.

The new vessel will be a sister ship to Seven Seas Explorer, which took the sea in 2016, and to Seven Seas Splendor, due to delivery in 2020. With about 54,000 tons, the unit will be able to accommodate up to 750 guests on board and she will be the brand’s sixth-all-suite vessel in Regent’s fleet. “As her sister ships, the new vessel will be built using the very latest environmental protection technologies. The interiors will be particularly sophisticated, with every attention paid to passenger comfort,” Fincantieri said.

“We are excited to build on the spectacular success of Seven Seas Explorer and Seven Seas Splendor as we embark on bringing to life a new vessel that will set even higher benchmarks for elegance, luxury and style,"said Frank Del Rio, President and CEO of NCLH, in the statement.

“This new ship further strengthens our Company’s robust yet measured growth profile with vessels now on order for all three of our award-winning brands, enabling us to  expand our presence globally, further diversify our product offerings and continue to drive shareholder returns," he added.


Rauma Marine Constructions in €120 million ferry contract with Kvarken Link

  • Written by Kari Reinikainen
  • Category: Top Headlines

Rauma Marine Constructions (RMC), the Finnish shipbuilder, said it has signed a letter of intent with Kvarken Link, a Finnish-Swedish ferry company, for an advanced 800 passenger and 1,500 lane metre capacity ropax vessel.

The vessel is set to operate between the Finnish city of Vaasa and the Swedish city of Umeå. The contract, with a value of approximately €120 million, will have an impact on employment totalling around 800 person-years. “The formal construction agreement is to be signed in early 2019, with the design and construction work set to start immediately thereafter,” Jyrki Heinimaa, CEO of RMC, said in a statement.

“The vessel will be designed to be environmentally friendly, with a machinery running on a dual fuel and battery solution, and the main source of fuel being liquefied natural gas. The vessel will also be able to utilise, for example, biogas produced in Vaasa,” RMC said.

The ship will be built to Finnsh-Swedish ice class of 1A Super, in order to guarantee that it will be able to navigate in the challenging ice conditions of the Kvarken region as independently as possible.

Kvarken Link is owned by the city of Umeå and the city of Vaasa, both of whom serve as guarantors of the financing.

A ferry service was introduced between the two cities by Vaasanlaivat in 1948. The business grew rapidly and by the late 1980s, several second hand ships were employed on services from Vaasa to not just Umeå, but also Ornskoldsvik and Sundsvall across the Gulf of Bothnia. Vaasa handled more than a million passengers a year at this time.

The abolition of duty free sales in intra-EU travel in July 1999 led to a sharp reduction in passenger volumes and Silja Line, which had acquired Vaasanlaivat, pulled out of Vaasa.

The service to Umeå was reintroduced soon by anther company, but it used aged and low quality tonnage. A 1981 built second hand ropax Wasa Express run by Wasaline, the trading name of the company that contracted the newbuilding, is presently employed on the service.




Oceania Cruises signs for two Allura-class newbuilds with Fincantieri

  • Written by Teijo Niemelä
  • Category: Top Headlines

Fincantieri and Norwegian Cruise Line Holdings Ltd. signed a contract for the construction of two new generation cruise ships for the Oceania Cruises brand, with delivery scheduled respectively in 2022 and 2025, which will start the Allura-class. The agreement has an overall value exceeding 1 billion euros.

With about 67,000 tons and the capacity of accommodating approximately 1,200 passengers on board, these units will be the new flagships of Oceania Cruises future fleet, for which the Group has built in 2011 and 2012 respectively Marina and Riviera at the Sestri Ponente (Genoa) yard.

“We are excited to expand the Oceania Cruises fleet with our new Allura-Class ships to meet the strong demand for culinary- and destination-focused cruise vacations around the globe” said Frank Del Rio, President and CEO of Norwegian Cruise Line Holdings Ltd. “This new class of ships will further elevate the already best-in-class guest experience at Oceania Cruises and meaningfully strengthen demand from both new and loyal returning guests, which will ultimately drive further returns for shareholders."

“This new successful project for Oceania Cruises is yet another demonstration of our ability to capitalize on product innovation and diversification to meet the needs of every type of customer, a capability that distinguishes us in the world,” said Giuseppe Bono, CEO of Fincantieri. “The order we are announcing today, indeed, reiterates not only our first place in the luxury sector, but at the same time it further strengthens an unprecedented leadership in the cruise sector, with a backlog of 55 vessels to be built for most of the brands operating on this market, and deliveries extending all the way to 2027."

Norwegian Cruise Line Holdings is one of the top cruise companies in the world. Besides Oceania Cruises, it operates the Norwegian Cruise Line brand, for which Fincantieri is developing the new Leonardo-class, 6 units which will be delivered between 2022 and 2027, and the Regent Seven Seas Cruises brand, to which Fincantieri has delivered in 2016 the ultra-luxury ship Seven Seas Explorer in Sestri Ponente and is now building a sister ship with delivery expected in 2020 in Ancona.

Carnival warns of flat net revenue yields in first quarter, higher costs

  • Written by Kari Reinikainen
  • Category: Top Headlines

A rise in fuel prices will erase $0.03 of the earnings per share of Carnival Corporation & plc, the world’s largest cruise shipping group, in the first quarter to 28 February, the company said in a statement.

“First quarter constant currency net revenue yields are expected to be flat with the prior year. Net cruise costs excluding fuel per available lower berth day (ALBD) in constant currency for the first quarter of 2019 are expected to increase by approximately 2.0% compared to the prior year,” Carnival said.

“Changes in fuel prices (including realized fuel derivatives) and changes in currency exchange rates compared to prior year are expected to decrease earnings by $0.03 per share,” Carnival stated..

“Based on the above factors, the company expects adjusted earnings per share for the first quarter 2019 to be in the range of $0.40 to $0.44 versus 2018 adjusted earnings per share of $0.52,” Carnival pointed out.

Carnival forecasts 2019 EPS to rise to $4.50 to $4.80 from $4.26 in 2018

  • Written by Kari Reinikainen
  • Category: Top Headlines

Carnival Corporation & plc, the world’s largest cruise shipping group, said it expects its earnings per share (EPS) for the financial year to 30 November 2019 to rise to the range of $4.50 to $4.80, compared to 2018 adjusted earnings per share of $4.26.

The company said in a statement that a this time, cumulative advance bookings for full year 2019 are considerably ahead of the prior year at prices that are in line with the prior year. “Pricing on bookings taken since September has been running in line on a comparable basis to the prior year while booking volumes are significantly higher compared to the prior year. As a result, even with higher capacity, there is less inventory remaining for sale than at the same time last year,’ Carnival said.

Arnold Donald, President and Chief Executive Officer, commented in a statement: "Based on continued strength in underlying fundamentals, we are poised to deliver another year of strong revenue and earnings growth, with booking volumes running significantly ahead of our higher capacity growth and net revenue yields expected to exceed last year's record levels (constant currency). We remain committed to driving demand in excess of measured capacity growth to continue the momentum into 2019 and beyond."

Based on current booking trends, the company expects full year 2019 constant currency net cruise revenues to be up approximately 5.5%, with capacity growth of 4.6%, and net revenue yields in constant currency expected to be up approximately 1.0% compared to the prior year.

The company expects full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 0.5 % compared to the prior year.

Changes in fuel prices (including realized fuel derivatives) and currency exchange rates are expected to increase earnings by $0.14 per share compared to the prior year. Voyage cancellations due to the delayed delivery of AIDAnova have impacted 2019 earnings by $0.04 per share.


Donald added, "Based on the foundation we have put in place we are well positioned to continue to drive shareholder returns as we execute along a path toward growing earnings and return on invested capital over time. We remain committed to the continued distribution of cash to shareholders through increasing dividends, currently totaling $1.4 billion annually, and opportunistic share repurchases, which have reached $4.6 billion since late 2015."

CBM 2018/2019 Winter