Top Headlines

RCCL’s Fain leaves door open to further TUI Cruises’ orders

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 27 January 2014 27 January 2014

Richard Fain, Chairman and Chief Executive Officer of Royal Caribbean Cruises Ltd (RCCL, the world’s second largest cruise shipping company, has left the door open to further orders for TUI Cruises, the German premium market company of which RCCL owns 50%.

"We think that the ships we have on order for our wholly-owned brands will serve us well and we do not anticipate an additional newbuild for delivery in 2017,” he said in a statement. TUI Cruises has two 99,3000 gross ton newbuildings on order at STX Finland in Turku and the Hamburg based company is widely believed to contemplate the construction of two more ships of the same type.

Based upon current ship orders, RCCL’s projected capital expenditures for 2014, 2015, 2016 and 2017 are $1.3 billion, $1.3 billion, $2.1 billion and $0.3 billion, respectively. "We remain committed to improving our shareholder returns, returning to an investment grade credit and maintaining moderate growth," said Fain.

RCCL says booking volumes, per diems ahead of last year

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 27 January 2014 27 January 2014

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping company, says its bookings during the fourth quarter were on par with historical levels, and the company is experiencing a typical Wave season. “Booked load factors are up year-over-year for the second, third and fourth quarter, and flat for the first quarter. Average per diems are ahead of same time last year in all four quarters,” it said in a statement.

The company expects a Net Yield increase of 2% to 3% on a Constant-Currency basis and approximately 2% on an As Reported basis for the full year.

“While the Caribbean continues to feel pricing pressure, strong demand for our other itineraries has more than compensated. In particular, load factors and pricing are up significantly for sailings in Europe and Asia. The overall result is increasing yields despite the remaining overhang from last year’s industry events,” said Jason T. Liberty, chief financial officer.

Net cruise costs (NCC) excluding fuel are expected to be flat to slightly down on a Constant-Currency basis and approximately flat on an As Reported basis – in spite of inflationary pressures, rising insurance costs and continued investment in the product and marketing.

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company currently estimates 2014 Adjusted EPS will be in the range of $3.20 to $3.40 per share.

First quarter yields are expected to be approximately flat on a Constant-Currency basis and down approximately 2% as reported. The first quarter of 2014 is the most difficult comparable due to the timing of last year’s negative media storm and its effect on Caribbean sailings. Yields in the second, third and fourth quarters are expected to be higher due to easier comparables and strong performance on Europe and Asia itineraries.

RCCL sells Pullmantur’s non-core businesses

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 27 January 2014 27 January 2014

Royal Caribbean Cruises ltd (RCCL), the world’s second largest cruise shipping group, said it had reached an agreement to sell Pullmantur’s non-core businesses, the closing of which is subject to customary conditions.

“These non-core businesses include a land tour company and a Spanish travel agency. With Pullmantur’s increasing focus on Latin America, the strategic importance of these businesses to Pullmantur has diminished,” RCCL said in a statement.

While these non-core businesses are immaterial to the company’s bottom line, they do impact individual components of the income statement.

RCCL beats 2013 forecast, net profit rises to $473.6 million

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 27 January 2014 27 January 2014

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, has exceeded the forecasts of industry analysts and reported a net profit of $473.6 million for 2013, an increase from $18.3 million in 2012, when impairment charges hit the bottom line.

The fresh figure corresponds with earnings per share (EPS) of $2.40, which exceeded analysts forecast of $2.35. Revenues rose to $7.96 billion from $7.68 billion.

For the final quarter of2013, RCCKL reported net profit of $7.0 million compare to a loss of $392 million the same period last year, while revenues rose to $1.85 billion from $1.80 billion.

Prestige Cruise Holdings to raise $250 million through IPO

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 24 January 2014 24 January 2014

Prestige Cruise Holdings, parent company of Regent Seven Seas Cruises and Oceania Cruises, has filed with U.S. regulators to raise up to $250 million in an initial public offering of common stock, the Reuters news agency reports.

Prestige is controlled by Apollo Management, the US based private equity company that took the Norwegian Cruise Line group public in 2012-13.

Net proceeds from the offering will be used to repay debt and for working capital purposes, Miami, Florida-based Prestige said, according. to the report

The company's net profit rose to $47.6 million in the nine months ended Sept. 30, from $26.3 million, a year earlier. Revenue rose 7% to $917.4 million.