News

RCCL says booking trend normalises but Europe shaved 1 percentage point from yield expectation

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 26 July 2012 26 July 2012

Royal Caribbean Cruises Ltd (RCCL), the second largest cruise shipping group in the world, says overall, booking trends have continued to normalize and are now running at levels comparable to prior year's activity. "Larger than expected discounting has been required for the European season which has lowered the midpoint of the company's Constant-Currency Net Yield expectations for the year by approximately one percentage point from the April guidance," RCCL said in a statement.

"It is hard to distinguish how much of the pressure in Europe is connected to the Costa Concordia incident and how much is due to the economic roller coaster," said Brian J. Rice, executive vice president and chief financial officer. Rice continued, "Our sense is that the former is no longer having a major impact on our bookings especially amongst experienced guests. However, the timing of the incident left a big gap during our peak booking period and filling that gap is disrupting our normal booking patterns."

The company forecast that for the full year of 2012, Net Yields are expected to increase 2% to 3% on a Constant-Currency basis and be between flat and up 1% on an As-Reported basis. The expected effect of deployment initiatives and changes to the company's distribution system to Net Yields remains unchanged at +200 basis points for the full year.

"The company's cost outlook for the year has improved and is expected to offset more than half of the decline in revenue. For the full year, NCC excluding fuel are expected to increase approximately 4% on a Constant-Currency basis (approximately 2% As-Reported). Excluding deployment initiatives and changes to the company's distribution system, Constant-Currency NCC excluding fuel are expected to increase less than 1% on a comparable basis to prior year," RCCL said. Taking into account current fuel pricing and currency exchange rates, and the factors detailed above, the company currently estimates 2012 earnings will be in the range of $1.70 to $1.80 per share.

RCCL plunges to $3.6 million second quarter net loss on weak Europe

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 26 July 2012 26 July 2012

Royal Caribbean CruisesLtd (RCCL), the world's second largest cruise shipping gropup, has reported a second quarter net loss of $3.6 million, or 0.02 per share, compared to a profit of $935 million, equal to $0.43 per share, in the same peruiod lsst year.

"Since the company's April guidance, the strengthening of the U.S. Dollar and decreases in fuel pricing have essentially offset one another. Business demand remains solid in the Caribbean and Asia, but larger than anticipated discounting has been required in Europe which has resulted in a one percentage point decline to the midpoint of the company's Constant-Currency Net Yield expectations for the year. The company has been able to offset more than half of the yield declines through additional spending reductions,'"RCCL said in a statement.

Looking ahead to the third quarter, RCCL said Net Yields are expected to decrease between (1%) and (2%) on a Constant-Currency basis and approximately (5%) on an As-Reported basis. Earnings per share are expected to be within a range of $1.40 to $1.50.

For the full year 2012, Net Yields are expected to increase 2% to 3% on a Constant-Currency basis and be between flat and up 1% on an As-Reported basis. Earnings per share are expected to be within a range of $1.70 to $1.80. "The steady drumbeat of negative news emanating out of Europe is certainly having an impact," said Richard D. Fain, chairman and chief executive officer. Fain continued, "As a result, we are seeing pluses and minuses in the different geographical markets – North America is holding up reasonably well; Asia is a big plus; but Europe is a pretty consistent minus. Overall we have seen about a 100 basis point drop in our yield projections, but we expect to offset over half of this decline with lower spending."

Viking Ocean Cruises firms the newbuilding contract with Fincantieri

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 12 July 2012 12 July 2012

Viking Ocean Cruises and Fincantieri, world leader in the construction of cruise vessels, have signed a contract for the construction of two super luxury cruise ships.

Representing Viking Ocean Cruises was the company’s Chief Executive Officer, Torstein Hagen while Fincantieri was represented by its Chief Executive Officer, Giuseppe Bono.

At 47,000 gross tones with 472 cabins for a total passenger capacity of 944, the two vessels are destined to serve the market of smaller super-luxury ships. Delivery is scheduled for early 2015 and early 2016.

A crucial factor in Fincantieri’s successful bid was Export Banca, the system set up by SACE, Cassa depositi e prestiti and Simest to support Italian exports which enabled Fincantieri to offer the shipowner an attractive technical, commercial and financial package.

The signing of this important agreement is proof that the Italian system is competitive and able to offer effective solutions for the export of capital goods, even in today’s turbulent financial markets.

Furthermore, Fincantieri and Viking are discussing further high profile joint projects, not only in the ocean cruise segment but also in the river cruise segment, in which Viking River Cruises is world leader.