Top Headlines

RCCL forecasts full year 2016 EPS to rise to $5.90 to $6.10, below analyst average estimate

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 02 February 2016 02 February 2016

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, forecasts its adjusted earnings per share (EPS) to rise to the bracket of $5.90 to $6.10 in 2016 from $4.83 reported for 2015, but the forecast falls short of the $6.21 of cruise industry analysts

“Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company currently estimates 2016 Adjusted EPS will be in the range of $5.90 - $6.10 per share,” the company said in a statement.

It added that over the past several months the dollar has continued to strengthen relative to our basket of currency exposures, while fuel prices have lowered – resulting in a negative $0.14 impact to earnings per share for 2016. Additionally, interest rates have recently increased, which are negatively impacting earnings by $0.06 per share.

“Our booked position for 2016 is roughly equal to last year’s record high, and at higher rates. Continued strength from North American consumers is driving strong demand for North American products such as Caribbean, Alaska, and Bermuda which represent over 50% of capacity for the year,” RCCL said.

“These North American products combined with strong demand for Northern Europe and Asia sailings are expected to more than offset current pricing challenges impacting the Mediterranean, Australia and Brazil,” the company continued.

The company expects a Net Yield increase in the range of 2.0% to 4.0% on a Constant- Currency basis and flat to up 2% on an As-Reported basis for the full year. Net cruise costs (NCC) excluding fuel are expected to be up 1% or less on a Constant-Currency basis and up 0.5% or less As-Reported, RCCL stated.

RCCL final quarter profit doubles but full year falls on previous impairment charge

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 02 February 2016 02 February 2016

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, has reported almost doubling of net profit in the final quarter of 2015 from the same period a year earlier, but the full year figure fell short of 2014 due to an impairment charge booked earlier this year.

Fourth quarter net profit amounted to $206.8 million compared to $109.8 million in the same period last year as total revenues rose to $1.90 billion from $ 1.81 billion.

However, the full year 2015 net profit of $665.7 million was well below the $764.1 million reached last year as an impairment charge of $411 million that was booked earlier this year against the assets of Pullmantur, the group’s Spanish subsidiary, depressed the bottom line. Revenues, however, rose to $8.30 billion from $8.07 billion.

“During 2015, the US Dollar strengthened while the price of fuel in world markets declined. While the impact of currency is immediate, there is a lag before a change in the price of fuel flows through to business. There continues to be an inverse relationship between the foreign exchange impact on our currency exposures and fuel prices, but the offsets are not exact, especially in the short term. For 2015, the net impact of currency and fuel was a negative $0.25 per share relative to our January guidance,” RCCL said in a statement.

MSC Cruises contracts two Meraviglia plus units at STX France

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 01 February 2016 01 February 2016

MSC Cruises, the world’s fourth largest cruise shipping group, says it has contracted two Meraviglia-plus vessels, which will be larger than the two 167,000 gross ton Meraviglia class units currently on order..

The two Meraviglia-Plus next-generation ships, as the new class of vessels is called, will feature increased tonnage and overall size, with a total of 2,444 cabins and a maximum LSA (passengers + crew) of 8,000, the company said. They will feature classic and contemporary fine art museum at sea.

“The two new units will now be due for delivery respectively in October 2019 and September 2020, thus anticipating by nearly two years the delivery of the last of the now four Meraviglia STX France-made ships,” MSC Cruises said.

Adam D. Tihany appointed Creative Director for Costa newbuildings

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 01 February 2016 01 February 2016

Costa Cruises, the Italian contemporary market unit in the Carnival Corporation & plc group, has appointed New York based hospitality designer Adam D. Tihany as Creative Director for the two new ships, powered with Liquefied Natural Gas (LNG), scheduled for delivery in 2019 and 2020, the company said in a statement.

Costa has used Joe Farcus, the Miami based designer, to work on its ships since since the introduction of Costa Atlantica in 2000. Under the leadership of Tihany, who has worked for Carnival group’s Holland America Line and Seabourn brands, Costa Cruises will assemble a group of designers to execute the vision for the next generation of ships inspired by “Italy’s Finest.”

“It is a rare honor to narrate a design story from the director’s chair,” Tihany said. “The fact that this opportunity creates a partnership with Costa Cruises is all the more extraordinary. The phrase “Italy’s Finest” not only describes the design concept, but wholly embodies the Costa brand.”

The layout of the new ships will reflect comments and suggestions from Costa guests, creating a more efficient use of the ships’ space and ultimately an enhanced onboard experience for guests.

The Costa ships will be the first in the cruise industry to be powered at sea by Liquefied Natural Gas, together with the two new ships ordered for Aida Cruises, which is the German brand belonging to Costa Group. To be built by Meyer shipyard in Turku, Finland, each of the new Costa ships will exceed 180,000 gross tons, offering more than 2,600 passenger cabins for a total of 6,600 passengers onboard.

Tihany, who has worked on many luxury hotels, most recently brought his design concepts to the majority of the public spaces on the new Pinnacle class Koningsdam of Holland America, launching April 2016. Also launching later this year is Tihany’s first complete cruise ship design on Seabourn’s newest vessel, Seabourn Encore.

Carnival Corp & plc issues profit warning on foreign exchange rates

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 January 2016 29 January 2016

Carnival Corporation & plc, the world’s largest cruise shipping group, sais its 2016 earnings per share would be $0.08 lower than forecast in connection with the publication of the groups fourth quarter and full year 2015 results.

“On December 18, 2015, we said that we expected our adjusted diluted earnings per share for the 2016 first quarter to be in the range of $0.28 to $0.32 and 2016 full year to be in the range of $3.10 to $3.40,” the company said in statement.

“On January 26, 2016, updated only for the current assumptions in the table below, our adjusted diluted earnings per share for the 2016 full year would decrease by $0.08,” Carnival continued in its final 2015 result statement filed with the stock exchanges in London and New York.

The decrease was caused by foreign currency exchange rates, including both foreign currency translational and transactional impacts of $0.11 per share, partially offset by a $0.03 per share increase due to lower fuel prices, net of forecasted realized losses on fuel derivatives. “In addition, our adjusted diluted earnings per share for the 2016 first quarter would decrease by $0.02,” Carnival said.

The recent strengthening of the US dollar against many other currencies weakens the performance of those of the group’s companies that do not use the dollar.