Royal Caribbean Profits Take a Hit

Posted by Michelle Howard
Thursday, April 24, 2014
Navigator of the Seas (Courtesy Royal Caribbean)

Royal Caribbean Cruises Ltd reported a much lower-than-expected quarterly profit as costs rose and passengers spent less onboard.

Shares of the company, whose cruise lines include Royal Caribbean International, Celebrity Cruises and Azamara Club Cruise, fell as much as 3.2 percent in early trading.

The company shortened or canceled six cruises during the January-March quarter, typically the strongest for cruise operators.

Voyage disruptions hurt yields, which include ticket sales and spending on board, by about 0.5 percent, the company said.

Net cruise costs excluding fuel rose 1.3 percent on a constant-currency basis in a quarter in which cruise liners usually offer their best deals.

The company expects smoother sailing in coming quarters as it expects higher bookings and continuing strong demand for its Chinese and European cruises.

Royal Caribbean said booking volumes rose about 18 percent in the past three months. Bookings jumped 20 percent in the past eight weeks.

"The company experienced a record booking week at the end of February, which is an unusual time for so much activity," the company said in a statement

The industry has just started to recover from negative publicity arising from a series of headline-grabbing mishaps, including virus outbreaks and engine fires, over the last two years.

Carnival Corp, the world's No. 1 cruise operator, forecast a full-year profit below analysts' estimates in March as it cut prices. It also plans to spend more on advertising to attract customers after onboard mishaps hurt demand.

Royal Caribbean raised its full-year earnings forecast to $3.25-$3.45 per share from its previous forecast of $3.20-$3.40 per share. It expects net yields to increase 2 percent to 3 percent.

The company said it expects second-quarter earnings of 45 cents-55 cents per share, largely above the average analyst estimate of 46 cents per share.

The company's net income fell 65 percent to $26.5 million, or 12 cents per share, in the first quarter ended March 31.

Excluding items, earnings were 21 cents per share, well below the average estimate of 28 cents per share.

Revenue fell 1 percent to $1.89 billion, in line with analysts expectations, according to Thomson Reuters I/B/E/S.

Royal Caribbean's shares were down 2.8 percent at $51.13 in morning trading on Thursday on the New York Stock Exchange. Carnival shares were up less than a percent at $37.67.

(Reporting by Devika Krishna Kumar and Siddharth Cavale in Bangalore; Editing by Maju Samuel and Saumyadeb Chakrabarty)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

Passenger Vessels

Cruise Ship Returns to Texas after Ebola Concern

The Carnival Magic cruise ship was en route back to the United States on Saturday with a passenger from Texas who might have handled specimens of the first Ebola

Obama Appoints Ebola 'Czar'; Texas Health Worker Isolated on Ship

President Barack Obama appointed a former White House adviser as U.S. Ebola "czar" on Friday as the global death toll from the disease that has hit mostly three

Kiel's 2014 Cruise Shipping Season Ends

Expanded terminal capacities created at Berth 1 This year’s cruise shipping season in Kiel closes on the evening of October 18 when the AIDAcara sets sail for the Canary Islands.

News

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Missouri River Basin is Booming

The U.S. Army Corps of Engineers Missouri River Basin Water Management Division is maintaining above normal releases at the four lower dams on the Missouri River.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1899 sec (5 req/sec)