Cruise LIne Sees European Financial Woes Impact

Press Release
Thursday, July 26, 2012

Royal Caribbean reports Q2 2012 results and updates 2012 guidance

Extracts from the company's report are as follows:

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.

Results For the Second Quarter of 2012:
    ◦    Net loss was ($3.6 million), or ($0.02) per share, versus net income of $93.5 million, or $0.43 per share, in 2011.  Results include a ($0.05) per share mark-to-market loss on the company's WTI fuel option portfolio;
    ◦    Net Yields increased 4.5% on a Constant-Currency basis (+1.8% As-Reported).   Net Cruise Costs ("NCC") excluding fuel increased 8.3% on a Constant-Currency basis (+5.8% As-Reported)

"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."

2012 Outlook
As the company has previously commented, the strengthening of the U.S. Dollar has historically been inversely correlated to bunker pricing.  Since the April guidance, the strengthening of the U.S. Dollar has reduced the company's full year outlook by approximately $0.13 per share. 

This outlook reduction has been largely offset by the reduction in bunker pricing that occurred during this same time period.  The net effect of these currency and fuel price changes is essentially neutral for the company's full year earnings outlook.    However, the mark-to-market loss on the options is expected to cost the company a ($0.05) per share charge at current prices versus prior guidance.
 


 


 


 

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

People & Company News

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

Barczak Joins Alan C. McClure Associates

Naval architecture and engineering firm Alan C. McClure Associates (ACMA) announced today that Registered Professional Engineer Nicholas Barczakhas joined the ACMA team as a naval architect.

Finance

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

NOAA Orders Newbuild Navigation Response Boats

NOAA today announced that Lake Assault Boats of Superior, Wisconsin, will build two small vessels for the Office of Coast Survey's navigation response program,

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar 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: 0.1241 sec (8 req/sec)