Carnival Corporation & plc interims firm as demand growth outpaced supply expansion

Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a rise in both net and operating results for the second quarter and first half of its financial year on strong demand.

Group net profit rose to $561 million in three months to 31 May from $379 million in the same period year on, while operating result (EBIT) rose to $559 million from $500 million. Revenues rose to $4.36 billion from $3.95 billion.

In the first six months of its financial year, Carnival reported a rise in net profit to $961 million from $730 million and in EBIT to $978 million from $868 million. Revenues increased to $8.56 billion from $7.74 billion.

Arnold Donald, President and Chief Executive Officer said in a statement: "We delivered another strong quarter, again achieving record adjusted earnings on record revenues and exceeding the high end of our guidance range. Strong operational execution drove a 30% increase in adjusted earnings affirming the strength of our core strategy to create demand that outpaces measured capacity growth through outstanding guest experience efforts coupled with innovative actions to increase consideration for cruising across all global markets."

Adjusted net income excludes unrealized gains and losses on fuel derivatives and other net charges, totaling $72 million in net gains for the second quarter of 2018 and $1 million in net gains for the second quarter of 2017

Key information for the second quarter of 2018 compared to the second quarter of 2017:

Gross revenue yields (revenue per available lower berth day or "ALBD") increased 8.8 percent. In constant currency, net revenue yields increased 4.8 percent exceeding March guidance of up 2.5 to 3.5 percent.

Gross cruise costs including fuel per ALBD increased 8.2 percent. In constant currency, net cruise costs excluding fuel per ALBD increased 3.6 percent, better than March guidance of up 4.0 to 5.0 percent, principally due to the timing of expenses between quarters.

Changes in fuel prices (including realized fuel derivatives) and currency exchange rates increased earnings by $0.01 per share.

Highlights from the second quarter include the delivery of Carnival Cruise Line's 26th ship in its fleet, Carnival Horizon in March 2018. Additionally, in April 2018 Seabourn took delivery of the 5th all-suite ship in its ultra luxury fleet, Seabourn Ovation.

As a result of the strong guest response to sailings to Cuba, Carnival Cruise Line received approval for more than 20 additional calls, bringing the total to 40 calls to Cuba in 2019, departing from home-ports in Miami, Fort Lauderdale, Tampa, and Charleston. Also during the quarter, Carnival Cruise Line unveiled the largest, most technologically advanced operations center in the cruise industry. Carnival Corporation & plc increased its quarterly dividend from $0.45 to $0.50 and replenished the share repurchase program to $1 billion.

ABB to power new Virgin Voyages cruise ship fleet

The initial Virgin Voyages vessel, due for delivery in 2020, will be the first of a fleet of three innovative ships designed and built with environmental responsibility in mind.

Each of the 110,000 gross ton vessels will feature ABB’s Azipod propulsion, a gearless steerable propulsion system where the electric drive motor is in a submerged pod outside the ship hull. Azipod propulsion has become an industry standard in the cruise segment, with the proven ability to cut fuel consumption by up to 15 percent compared to traditional shaftline propulsion systems.

“Making Virgin Voyages environmentally sustainable is central to our vision and we are delighted ABB’s Azipod propulsion will help us achieve that goal. Combined with excellent maneuverability, it was a natural choice for our ships,” said Stuart Hawkins, Senior Vice President, Marine and Technical Operations for Virgin Voyages.

“Azipod® electric propulsion stands for innovation and efficiency like no other propulsion system and is fundamental to our vision of electric, digital and connected shipping,” said Peter Terwiesch, president ABB's Industrial Automation division. “Based on 25 years of experience and development, our Azipod propulsion technology continues to lead ships into the future of e-mobility, underpinning our commitment to a technology with superior performance, reliability, safety and environmental profile.”

Two Azipod XO units, with a combined propulsion power of 32 MW (43,000 HP) will propel each of the three ships. In addition to highest energy efficiency, Azipod XO units, where “X” stands for “next generation” and “O” for open water operation, provide high maneuverability and minimal noise for increased passenger comfort.

Each vessel will feature ABB’s complete electric power plant concept – a solution encompassing electricity generators, main switchboards, distribution transformers and a remote control system for maneuvering the Azipod units from the bridge. The combination of Azipod propulsion and ABB’s electric power plant concept makes it possible to configure all of the equipment for optimized performance, resulting in increased efficiency and lower emissions.

In line with ABB’s “Electric. Digital. Connected.” approach that envisages shipping’s digital and connected future, these vessels will have the capability to connect to the ABB AbilityTM Collaborative Operations Centers infrastructure. This network uses remote equipment monitoring and data analytics to enable predictive maintenance, planned interventions or even remote technical support.

The four-stroke engines powering the electricity generators – four per vessel – will be equipped with ABB’s TPL-C turbochargers, designed to handle demanding operations and consistently chosen for large cruise ships for their reliability and efficiency.

Each of the ships will be 278 meters long and 38 meters wide and accommodate more than 2,700 passengers and 1,150 crew. All three ships will be built at the Fincantieri shipyard in Genoa, Italy, with the second and third vessel deliveries scheduled for 2021 and 2022 respectively.

Since the first installation over 25 years ago, Azipod propulsion has saved approximately 700,000 tons of fuel while clocking up close to 15 million running hours at an impressive availability rate of 99.8 percent. In March 2018, Azipod propulsion secured its 100th contract for powering a cruise ship.

By being placed outside of the hull, the Azipod propulsion system frees up space for more cabins. Due to minimal noise and vibration, Azipod® propulsion also improves passenger and crew comfort. The units’ ability to turn in all directions increases cruise ships’ access to ports without tug assistance. Options for Azipod propulsion now span 1.5MW to 22MW.

A revolutionary new terminal for Celebrity Edge at the Port Everglades

Designed to leave guests in awe, Celebrity Cruises celebrates another milestone with the unveiling of the line’s first ever brand-designed cruise terminal, Terminal 25 (T25), located at Port Everglades in Hollywood, Fla. Designed to complement the sophistication of the terminal’s future resident – Celebrity Edge – T25 features cutting-edge technology and a sleek design, all crafted to create the ultimate guest experience.

Brought to life in collaboration with Broward County’s Port Everglades and seasoned architectural firm Bermello Ajamil & Partners, Inc., T25 melds a gorgeous, warm design with unique technology, such as Frictionless Arrival, which will make the check-in process absolutely seamless, and an interactive light wall art installation. T25 will also offer Suite Class guests a singular experience along the path to The Retreat, with an exclusive lounge, elevator lobbies, screening areas and even a private rooftop terrace.

“When designing the revolutionary Celebrity Edge, we knew we wanted to design a terminal that perfectly complemented the ship and matched its one-of-a-kind experience,” said Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises. “With cutting-edge technology, in service of a gorgeous design, T25 is that perfect new home. T25 also happens to be Celebrity’s first ever brand-designed cruise terminal, which not only represents a milestone for Celebrity, but also presented us with the opportunity to set yet another standard in design and create the perfect guest experience.”

“This is the largest financial investment that Port Everglades has made in a cruise terminal, and we fully anticipate that Terminal 25’s iconic design will be a showcase for Broward County and Celebrity Cruises as we strive to create an inviting and fun environment for the millions of cruise passengers who visit here," said Broward County Mayor Beam Furr.

“We are replacing two smaller and outdated cruise terminals with an innovative facility that is inspired by the sleek, futuristic design of Celebrity Edge and can accommodate some of the world’s largest cruise ships,” said Port Everglades Chief Executive and Port Director Steven Cernak. “The time was right to build a new Terminal 25 that uses cutting-edge technology, such as electronic media-mesh for innovative messaging, to attract contemporary travelers who want to explore the world.”

T25 also features a 1,463 sq. ft. GKD Mediamesh that will wrap the terminal’s exterior, juxtaposing the more than 18,000 sq. ft. of outward facing glass, and the first purpose-built crew lounge of any Royal Caribbean Cruises Ltd. terminal. This crew lounge will have complimentary Wi-Fi connectivity, TV access, optimized storage, quiet places for employees and more.

Scheduled for completion in late October 2018, T25 will be the new home to many Celebrity ships during their winter deployment, including Celebrity Edge, Celebrity Infinity, Celebrity Reflection and Celebrity Silhouette. Along with these ships, the terminal will be LEED certified and able to accommodate up to a 1,150-foot-long ship. When Celebrity is not using T25 the facility will be open to other cruise lines.

Currently, Port Everglades welcomes on average approximately 335,000 Celebrity guests annually, representing about nine percent of its overall passenger traffic. Once the new cruise terminal is completed, it is anticipated that Celebrity will generate nearly 500,000 travelers at Port Everglades – representing no less than 14 percent of the port’s projected passenger traffic.

Ritz-Carlton may add five yachts, parent Marriott ponders cruise entry - report

The Ritz-Carlton Yacht Collection could build up to five more yachts in addition to the three it is planning at the moment, , while its parent compaby Marriott is likely to launch other cruise brands across its hotel portfolio, Travel Weekly reports in the UK.

Douglas Prothero, chief executive of The Ritz-Carlton Yacht Collection, told Travel Weekly of his intentions to expand his brand and expectations of the Marriott group’s developing cruise proposition, believing it to have “enough brands to diversify (into cruise) for quite a long time”. Currently Ritz-Carlton has three 292-passenger and 149-suite vessels on order in Spain, the first launching in 2020 followed by two in 2021.

Prothero said that while expansion was on the cards for the Ritz-Carlton yacht brand, it was also important it remains a niche and specialised product.

“We’re going to build more yachts,” he was quoted as saying. “We don’t know exactly how many more but the intent to build is there. We have one in 2020, two in 2021 and then we expect one or two in 2022.”

“We want to maintain a niche designation; we could easily build 20 of them but we won’t. I think six, seven, eight ships won’t be a problem for us,” he stated.

“We’ll do other cruise ventures under Marriott,” he continued. “And that’s part of the reason why other cruise lines aren’t happy with our arrival in the market because they know we won’t stop with Ritz-Carlton. Any number of our hotel brands would work as a cruise brand. We won’t go head to head with ourselves within the group. We’re doing luxury with Ritz-Carlton and we could do upper premium and premium. We have enough brands to diversify for quite a long time,” he said, according to Travel Weekly.

Several years ago, the Canada-based Four Seasons hotel group that has no connection to Marriott was planning to enter the cruise industry. It had plans to build a 37,000 gross ton spa-orientated ship at what it Meyer Turku today, but the plan fell through.

Four Seasons only wanted to invest a minority stake in the ship owning company – an asset light business model – although it would operate the ship. By contrast, Ritz-Carlton has opted to own the ships it plans to operate.

 

Ponant takes delivery of Le Lapérouse, the first ship in the Ponant Explorers series

Ponant, the global leader in luxury expeditions and the only French cruise line, has taken delivery of its new vessel, Le Lapérouse, the first of the six Explorers-class ships.

On June 15, as per the agreed construction schedule, Ponant successfully took delivery of Le Lapérouse, the brand-new vessel and the first of the six exceptional Ponant Explorers series. Construction of the other five ships is currently under way. Le Lapérouse left the shipyard in Ålesund, Norway, on June 16 and will reach Reykjavik, Iceland today, June 19 for the start of her maiden cruise. The inauguration will take place on July 10 in Reykjavik.

“Le Lapérouse is a wonderful achievement for the company and the result of intensive teamwork with Vard and Fincantieri. From remarkable nautical performances to technical excellence and offering an extraordinary level of comfort, everything is in place for the Ponant Explorers series to be a huge success,” says Jean Emmanuel Sauvée, CEO and Co-Founder of Ponant.

With a smaller capacity of just 92 staterooms and suites all with a balcony or private terrace, the ship boasts an elegant design, a long sleek line, state-of-the-art technology, and major innovations. Also designed to respect the environment, Le Lapérouse is the true symbol of a new generation of ships flying the French flag.

The six Ponant Explorers will feature a world first: the “Blue Eye.” The innovative multi-sensorial underwater lounge will allow passengers to discover and experience the underwater world via two portholes in the form of a cetaceous eye looking out on to the sea bed, non-intrusive underwater lighting, and hydrophones integrated into the keel that retransmit the natural symphony of the deep water. The lounge will also feature Body Listening sofas, offering a unique sensorial listening experience by corporal resonance.