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RCCL forecasts 2020 adjusted EPS to climb to $10.40-$10.70 range

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2020 04 February 2020

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, says the outlook for the demand environment in the new year remains strong, but certain recent events have clouded the outlook somewhat.

“Excluding any impact from the Coronavirus and taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company estimates 2020 Adjusted EPS (earnings per share) will be in the range of $10.40 to $10.70 per share,” RCCL said in a statement, adding that its guidance does not include possible effect of Coronavirus outbreak.The 2019 EPS non-GAAP EPS amounted to $9.54

The company said it is very encouraged about the demand environment for 2020. “Wave Season has started on a strong note with overall rates higher than same time last year and booked load factors ahead of same time last year on a like-for-like basis. The company's new ships and new attractions are a major driver not only of revenue, but of the strength of its brands.”

Although demand for the core products is very strong across all quarters, recent geopolitical events such as the brushfires in Australia and unrest in the Middle East have impacted demand for certain itineraries, but the strength of the core products has more than compensated for this. The US and European markets have started the year on a particularly strong note.

The company expects a Net Yield increase in the range of 2.25% to 4.25% in constant currency and 2.5% to 4.5% as reported for the full year.

RCCL said four ships due to be introduced during 2020 will be important contributors to the yield growth and profitability. The timing of the new ship deliveries would result in a more significant yield growth in the second half of the year than in the first half.

"Our yield outlook for 2020 is very encouraging with higher pricing on top of an exceptional 2019 performance," said Jason T. Liberty, executive vice president and CFO.

"It's clear that the Coronavirus will impact revenue in China in the short term, but we are a long-term business and our plans to continue growing this profitable market remain unchanged. We are also very excited about the introduction of our 20>25 by 2025 goals,” he continued.

“Our formula for success is simple and our path towards our EPS goal is driven by moderately growing our yields, effectively managing our costs and moderately growing our business. Meanwhile, our emissions target, which is one of our many sustainability initiatives, will further focus our world-class design, engineering and operations teams to meaningfully improve our environmental impact."

Net cruise costs excluding Fuel are expected to be up 1.75% to 2.25 % in both Constant-Currency and As-Reported basis. Operating costs for the full year show continued good discipline, although the cadence of costs between quarters will vary. Costs in the first half of the year are expected to be higher than the second half driven by more drydock days and the timing of ship deliveries.

As previously announced, the Wuhan Coronavirus and the efforts to contain it are expected to negatively affect our results. While we expect this to be temporary, the situation is highly fluid and the overall impact cannot reasonably be estimated at this time.

Accordingly, our guidance does not include any provision for the impact of the outbreak. We will update our guidance as the situation stabilizes and we can reasonably estimate its impact.

Net yields are expected to increase 2.25% to 4.25% in constant currency and 2.5% to 4.5% as reported, RCCL said.

RCCL reports record result for 2019, but final quarter weaker year-on

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 February 2020 04 February 2020

Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping group, has reported record results for 2019 despite a weaker final quarter than in the previous year.

For the full year, net income rose to $1.90 billion from $1.18 billion and operating income reached $2.08 billion compared to $1.89 billion. Revenues rose to $10.95 billion from $9.49 billion.

Earnings per share in GAAP terms rose to $8.95 from $8.56.

However, in the final quarter, net income fell to $280.7 million from $320.4 million in the same period in 2018, while operating income contracted to $299.4 million from $364.0 million. Revenues increased to $2.52 billion from $2.33 billion.

Gross yields were up 8.2% in constant-currency and 7.0% as reported. Net Yields were up 8.0% and 6.7%, respectively.

Gross cruise costs per Available Passenger Cruise Days ("APCD") increased 8.7% in constant currency and by 8.0% as-reported. Net cruise costs ("NCC") excluding Fuel per APCD increased by 11.4% in constant currency and by 10.8% as reported,’ the company said in a statement.

Updated: Diamond Princess quarantined for at least 14 days

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 03 February 2020 03 February 2020

Princess Cruises can confirm that the first phase of health screening of all guests and crew onboard Diamond Princess, by the Japanese Ministry of Health, has been completed. "We were notified that amongst the samples that have completed testing, 10 people have tested positive for Coronavirus," Princess said in a statement.

These 10 persons, who have been notified, will be taken ashore by Japanese Coast Guard watercraft and transported to local hospitals for care by shoreside Japanese medical professionals. It has been confirmed that the ship will remain under quarantine in Yokohama. The length of the quarantine will be at least 14 days as required by the Ministry of Health.

The ship plans to go out to sea to perform normal marine operations including, but not limited to, the production of fresh water and ballast operations before proceeding alongside in Yokohama where food, provisions, and other supplies will be brought onboard.

Guests will continue to be provided complimentary internet and telephone to use in order to stay in contact with their family and loved ones, and the ship’s crew is working to keep all guests comfortable.

Princess Cruises will continue to fully cooperate with and follow the instructions of global medical authorities and the Japanese government.

"We will also be cancelling the next two Diamond Princess cruises departing Yokohama (Feb 4 and Feb 12) and will begin notifying guests today," Princess said in a statement.

Princess Cruises confirms there are 2,666 guests and 1,045 crew currently onboard covering a range of nationalities. Approximately half the guests onboard are from Japan.

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Princess Cruises thanks the Japan Ministry of Health for their thorough review of the health status of guests and crew aboard Diamond Princess. The cruise line has decided to cancel the next voyage of Diamond Princess to help facilitate the health screening and records review process.

Diamond Princess was due to depart Yokohama (February 4, 2020) for an 8-night roundtrip cruise. However, the decision was made to cancel the cruise because of the time needed for the authorities to complete their comprehensive review.

All guests will receive a full refund. Each guest will also receive a one hundred percent future cruise credit.

"While this decision will be disappointing for our guests, we feel they will understand the commitment to continue to work closely with the health authorities because we share a common goal of looking after the safety and well-being of our guests, crew and the places we visit," the company said in a statement.

Princess Cruises confirmed there are 2,666 guests currently onboard covering a range of nationalities. About half the guests are from Japan.

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Princess Cruises has confirmed the turnaround of Diamond Princess has been delayed for approximately 24 hours to allow Japan public health authorities the opportunity to review the health status of all guests and crew on board.

On the previous voyage, a guest from Hong Kong, embarked in Yokohama on January 20, sailed one segment of the itinerary, and disembarked in Hong Kong on January 25. He visited a local Hong Kong hospital, six days after leaving the ship, where he later tested positive for coronavirus on February 1. While on the ship he did not visit the ship’s medical centre to report any symptoms or illness. The hospital reports that he is in stable condition and the family members traveling with him remain symptom-free.

"The safety, security and well-being of all guests and crew is our absolute priority. The review of the arriving guests and crew, by Japanese health authorities, is standard practice after a guest tested positive for coronavirus and we are working closely with the local authorities to provide detailed records to facilitate their review," Princess said in a statement.

Diamond Princess arrived in Yokohama early from a 14-day round trip itinerary, which departed from Yokohama (Tokyo) on January 20 and was scheduled to return on February 4. There are 2,666 guests and 1,045 crew on board. 

Princess will provide a further update once we have more information. 

Emerald Waterways to introduce sea going cruise yacht, targets growth in UK

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 03 February 2020 03 February 2020

Emerald Waterways, the UK based company in the Scenic group that is headquartered in Australia, will expand into ocean cruising by the introduction of a 100 passenger capacity cruise yacht Emerald Azzurra, the company said on its website.

It will enter service in July 2021 and operate its first season in the Mediterranean and the Red Sea. The company has published itineraries that run until February 2022. tHe cabins on the ships will range in size from 17 to 110 sq m.

Emerald, which operates nine river cruise vessels, also has plans to grow its business in the UK in the years to come, the Daily Telegraph reports.

Information on the company's website shows watt the 110 metre long ship will have 50 cabins, three bars and restaurants, a wellness centre, including spa, gym and sauna, three tenders and a Zodiac. There will also be a marina platform to allow easy access to the water for swimming and water sports. The passenger accommodation will cover five decks and the ship will have a crew of 64.

Emerald Azzurra is currently under construction at Ha Long in Vietnam and the Manchester based Emerald has a team of supervisors at the shipyard, the Daily Telegraph report said.

“We’ll offer an innovative boutique yachting experience. There are a few cruise lines in the yachting market, but we’ll have the edge because Emerald Azzurra will be a brand new yacht, and 88% of cabins will feature a balcony. The design will have a distinct nod to our river Star Ships. Loyal guests will know exactly what they’re getting,” Colin Downing, managing director UK at Scenic Group, was quoted as saying.

Updated - Costa Smeralda passengers disembark after no coronavirus found

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 January 2020 30 January 2020

Passengers have started to disembark Costa Smeralda in Civitavecchia in Italy after a feared case of coronavirus turned out not to be the diasease that has affected thousands of people in various countries.

"Six thousand people on board a cruise ship in Italy have been allowed to disembark after health officials said a Chinese passenger who had symptoms of coronavirus had tested negative," the BBC reports, referring to Costa Smeralda. The 54-year-old as well as her husband were held in isolation on the ship but tests confirmed she was not infected.

Genoa based Costa Crociere that owns the ship is part of the Carnival group and Costa Smeralda is the largest and newest vessel in the fleet of the Italian unit of the group. It was delivered from Meyer Turku in Finland in December and has a gross tonnage of 185,010.

Meanwhile, the World Health Organization (WHO) declared the coronavirus a global health emergency.The death toll from the outbreak has risen to 170 in China.

"The Costa Smeralda cruise ship docked in the port of Civitavecchia, north of Rome. The woman who was suspected of being infected had reportedly flown from Hong Kong to join the cruise, and broke out in a fever while on board," the BBC said..

Yesterday, Daily Telegraph in London reported on its website: “Some 6,000 passengers have been banned from disembarking a cruise ship as tests are carried out on two Chinese passengers suspected of having coronavirus. The couple arrived in Italy on January 25 and boarded the ship, the Costa Smeralda, in the port of Savona that same day, a spokesman for the Costa Crociere cruise company said.