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Meyer Turku Group reports slightly reduced net loss for 2022

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 05 May 2023 05 May 2023

Meyer Turku Group, the Finnish cruise ship and specialist vessel builder, said its revenues and operating profit increased significantly and net loss was reduced slightly last year compared to 2021.

Net loss narrowed to €15.6 million last year from €17.0 million in 2021, while operating result increased to €20.3 million from €10.8 million. Revenues rose to €1,295 million from €1,079 million.

Meyer Turku CEO Tim Meyer comments on the result by saying:"During 2022, we were particularly affected by the difficult availability of materials and overall increased costs, especially on materials and financing.”

“Despite the unexpected events of the last few years, we have been able to keep the shipyard fully operational, and we are currently preparing for the sea trial of the Icon of the Seas in mid-June. The situation has been made possible by an effective cooperation with all our stakeholders. Internally, our company's change program supports us in improving profitability.,” he said in a statement.

“We are continuing our efforts to stay the forerunner of the green transition in the cruise industry. It is a big challenge and at the same time a great opportunity for us. We are focusing also this year on new technologies and continuously searching for new talents to join us on our journey,” Me yer said

In November 2022, Meyer Turku last delivered to Carnival Cruise Line, the company's 50th anniversary ship Carnival Celebration. Currently, in the outfitting pier there is the Icon of the Seas, which will be the world's most advanced and largest cruise ship when delivered to the Royal Caribbean International in late 2023.

Mein Schiff 7, which will be delivered to TUI Cruises in 2024, and Icon 2, to be completed in 2025, are also under construction at the shipyard. In addition to these, Icon 3, that will be completed in 2026, is included in the Meyer Turku order book.

Meyer Turku will also be delivering two multi-purpose offshore patrol vessels to the Finnish Border Guard in 2025 and 2026, the company said.

Image: Icon of the Seas at the fitting out berth of Meyer Turku on 05 May 2023. Photo credit: Christer Gorschelnik

SH Diana sets sail for Arctic following Amsterdam naming ceremony

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 04 May 2023 04 May 2023

SH Diana, the third ship of the Nicosia based expedition cruise operator Swan Hellenicis now on its way to Tromsø for an 11-day cruise of fjord exploration that opens its Arctic season following a naming ceremony in Amsterdam.

The vessel was named by Valerie Ann Wilson, Founder and CEO of Valerie Wilson Travel, in the presence of Swan Hellenic Senior Management, local dignitaries, VIP guests, the media and members of the cruise and travel industries from around the world, the company said in a statement.

Royal Caribbean significantly raises guidance for 2023 EPS

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 04 May 2023 04 May 2023

Royal Caribbean Group said that as a result of a record-breaking WAVE season and accelerating demand for its cruise experiences, the company is increasing its 2023 Adjusted Earnings per Share (EPS) guidance to $4.40 – $4.80.

This compares with an earlier guidance of $3.00 to $3.60, published in the winter when the company released its 2022 result statement.

Full Year 2023 Outlook:

Net Yields are expected to increase 6.25% to 7.25% as-reported and 6.75% to 7.75% in Constant-Currency, compared to 2019.
NCC, excluding Fuel, per APCD is expected to increase 5.2% to 6.2% as-reported and 5.5% to 6.5% in Constant Currency, compared to 2019.
The company expects to significantly exceed prior record Adjusted EBITDA, achieved in 2019.
Adjusted Earnings per Share for the full year are expected to be in the range of $4.40 to $4.80 per share.

Second Quarter 2023 Outlook:

Net Yields are expected to increase 9.6% to 10.1% as-reported and 10.1% to 10.6% in Constant-Currency, compared to the second quarter of 2019.
NCC, excluding Fuel, per APCD is expected to increase approximately 8.6% as-reported and approximately 8.9% in Constant Currency, compared to second quarter 2019.
Adjusted Earnings per Share for the second quarter are expected to be in the range of $1.50 to $1.60 per share.

Update on Bookings

Booking volumes in the first quarter were significantly higher than the corresponding period in 2019 and were considerably better than expected. This year, WAVE started earlier and extended further, generating a record level of bookings. These strong booking trends resulted in an acceleration of the company’s booked position in relation to prior years. In addition, the company is generating significantly more bookings at meaningfully higher prices than in prior years, particularly from the North American consumer.

The remarkable WAVE booking period resulted in strong close-in demand at higher prices for the first quarter, and enabled a significant improvement in revenue expectations for all three remaining quarters. The increase in yield expectations for the year is predominantly related to higher load factors in the first quarter and higher prices for all four quarters, especially for Caribbean sailings. Consumer spending onboard, as well as pre-cruise purchases, continue to exceed 2019 levels driven by greater participation at higher prices. The company expects load factors to reach historical levels by late spring.

As of March 31, 2023, the Group's customer deposit balance was at a record $5.3 billion.

Fuel Expense

Bunker pricing net of hedging for the first quarter was $733 per metric ton and consumption was 411,000 metric tons.

The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on today's fuel prices, the company has included $276 million of fuel expense in its second quarter guidance at a forecasted consumption of 409,000 which is 55% hedged via swaps.

Forecasted consumption is 54% hedged via swaps for the remainder of 2023, 25% and 5% hedged for 2024 and 2025, respectively. The annual average cost per metric ton of the hedge portfolio is approximately $577, $664, and $753 for 2023, 2024, and 2025, respectively.

The higher average cost in 2024 is driven primarily by the hedged fuel mix with Marine Gas Oil ("MGO") consumption hedged higher than Intermediate Fuel Oil ("IFO") consumption. The higher average cost in 2025 is driven by only MGO consumption hedged that year.

RCCL cuts net loss and reports $271 million operating profit in first quarter

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 04 May 2023 04 May 2023

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, has reported a sharp reduction in net loss and a substantial operating profit for the first quarter.

Net loss narrowed to $49.7 million from $859.2 million in the first quarter of 2022, while the Miami based company reported an operating profit of $47.9 million for the first three months of this year compared to a loss of $1,167.1 million a year earlier.

These results were significantly better than the company's guidance primarily due to strong close-in bookings at higher prices, continued strength of onboard spend, and favorable timing of operating costs.

"We knew that demand for our business was strong and strengthening, but we have been pleasantly surprised with how swiftly demand further accelerated well above historical trends and at higher rates," said Jason T. Liberty, president and chief executive officer of Royal Caribbean Group, in a statement. "Leisure travel continues to strengthen as consumer spend further shifts towards experiences. Demand for our brands is outpacing broader travel due to a strong rebound and an attractive value proposition," added Liberty. "We are increasing full year guidance, given the significant momentum in our business, and we are well on our way to achieve our Trifecta goals.”

Key Highlights

Stronger than anticipated demand has led to a record-breaking and extended WAVE season, which has and continues to translate into a robust booking environment – driving higher load factors and higher prices. These factors, combined with the continued strength in onboard spending, have led to the significant improvement (versus guidance) in the first quarter and the significant increase in the company's full-year expectations for ticket and onboard revenue, as well as earnings.

First Quarter 2023:

Load factors in the first quarter were 102%.
Gross Margin Yields were down 12.4% as-reported and 10.5% in Constant-Currency. Net Yields were up 5.1% as-reported and 5.8% in Constant-Currency, compared to the first quarter of 2019.
Gross Cruise Costs per Available Passenger Cruise Days ("APCD") increased 8.2% as-reported and 8.8% in Constant-Currency, compared to the first quarter of 2019. Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased 5.2% as-reported and 5.8% in Constant Currency, compared to the first quarter of 2019. Part of the improvement, compared to expectations, was due to favourable timing of operating costs.

First quarter revenue significantly exceeded the company's guidance primarily due to very strong close-in demand, higher load factors at higher prices, and continued strength in onboard revenue. The company experienced particularly strong close-in demand for Caribbean itineraries, which accounted for close to 80% of first quarter capacity.

Gross Cruise Costs per APCD increased 8.2% as-reported and 8.8% in Constant-Currency, compared to 2019. NCC excluding Fuel per APCD increased 5.2% as-reported and 5.8% in Constant-Currency, compared to 2019. Part of the improvement, compared to expectations, was due to favorable timing of operating costs. Gross Cruise Costs per APCD and NCC, excluding Fuel, per APCD for the first quarter included $2.87 per APCD of lingering transitional costs and structural costs (e.g. full-year operations of Perfect Day at CocoCay and the new Galveston terminal). In the first quarter, the company continued to benefit from multiple actions taken over the past several years to reshape its cost structure which is helping to offset persistent inflation.

"First quarter results reflect continued strong demand for cruising and our teams' focus on delivering the best vacation experiences that exceed guest expectations," said Naftali Holtz, chief financial officer, Royal Caribbean Group. "We also benefited from favorable timing of operating expenses, as well as our continued focus on improving margins consistent with our Trifecta goals."

Contemporary market brands “highest returning” at Carnival group

Details: Written by Kari Reinikainen Kari Reinikainen; Category: More News More News; Published: 04 May 2023 04 May 2023

Three contemporary market brands of Carnival Corporation & plc, the world’s largest cruise shipping group, generate the highest returns among its nine brands, said Josh Weinstein, President & CEO and Chief Climate Officer.

“An importantly, our growth is weighted towards three of our highest returning brands: Carnival Cruise Line, AIDA and P&O Cruises UK, following our portfolio and fleet optimisation,” he said at a conference call on 27 March.

Carnival Cruise Line is mainly focused on the US, while AIDA Cruises targets the German speaking part of Europe and P&O Cruises UK caters for the British market.